Bond Default Risk Falls in Asia-Pacific on China Spending Plan

The cost of protecting Asia-Pacific bonds from default fell after Chinese Premier Wen Jiabao said the government will increase spending “significantly” to combat a slowdown in the world’s third-largest economy.

The Markit iTraxx Asia index of credit-default swaps on the debt of 50 investment-grade borrowers outside Japan fell 25 basis points to 435 as of 9:03 a.m. in Hong Kong, according to Barclays Capital. Source

March 5, 2009 Posted in: Asia Pacific