S&P Global Ratings estimates that of the almost US$1 trillion in Asia corporate debt they rate that is due to mature by 2021, 63% of it is denominated in dollars and 7% in euros. The country is also among the most indebted in the OECD, with the ratio of household debt to disposable income at 169% in 2015, versus the 129% average. In addition, most corporate debt and all government debt is denominated in yen, and the vast majority of the state’s bonds are held domestically, so there is a lower risk of capital flight. And corporate debt is increasing, along with a rise in bad loans, which is causing risks for the banking sector. Southeast AsiaSoutheast Asian countries have relatively lower debt levels by Asian standards but leverage has increased in recent years with corporate and household debt becoming a particular concern in Thailand and Malaysia.

Source: The Edge Markets April 11, 2017 02:26 UTC