Private bankers steer clear of Singapore bonds as default risks mount

Investors are turning to higher-quality issuers.

Private bankers say they are avoiding Singapore’s riskiest bonds as a slowing economy worsens corporate finances and shrinking issuance makes refinancing harder.

Non-bank corporate bond offerings fell 38 percent to S$1.63 billion ($1.2 billion) last quarter from the preceding three months, the slowest start to a year since 2013, data compiled by Bloomberg show.

Credit Suisse Private Banking Asia Pacific and CA Indosuez Wealth Management say investors are favoring higher-quality issuers, while UBS AG Wealth Management warns of the prospect of exchange-rate losses on local-currency bonds.

Read the full report here.