S&P predicts Asia credit blow as in 1997S&P Global Ratings predicts the coronavirus impact on Asia-Pacific credit conditions could be as bad as that in 1997.
S&P expects the impact on output for the region to be as large as the Asian Financial Crisis, and forecasts Asia-Pacific growth to dive to 2.2 percent in 2020 with a U-shaped recovery taking hold only later this year.
"An enormous first-quarter shock in China, shutdowns across the U.S. and Europe, and local transmission guarantee a recession across the Asia-Pacific," said Shaun Roache, S&P Global Ratings chief economist for Asia-Pacific.
The likely shrinkage in GDP due to the slowdown in global economic growth and temporary blow from the coronavirus will likely constrain demand for capital, and subsequently, new bond issuance.
However, corporate and institutional borrowers in Asia-Pacific continue to borrow a huge amount from banks rather than other sources, said S&P.
Source: The Standard
https://www.thestandard.com.hk/breaking ... as-in-1997
It's all about "how much you made when you were right" & "how little you lost when you were wrong"