SINGAPORE – Investors and banks who have been piling into Asia’s fast growing offshore debt market face a painful reckoning as there seems to be no end in sight to the debt woes of the Evergrande Group – China’s second-largest property developer.
Lured by high yields and assuming that Beijing would bail out insolvent borrowers to avoid spooking financial markets, a broadening base of global investors had entered the mainly US dollar-denominated Asian bond market, which has seen a fivefold increase in issuance in the past 15 years.
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