BDCs' growth comes as rising private equity dry powder drives demand for private credit, as well as reflects strong investor interest, particularly in perpetual non-traded structures.
There is wide credit and financial differentiation among regions, which will lead to variations in LGFVs’ progress toward reaching debt sustainability.
In Asia-Pacific, banks in Hong Kong SAR, China; mainland China; and Vietnam are facing greater risks from commercial real estate loans amid stress in the property sector in the economies.
Robust growth in new orders will support 10% to 15% annual growth in overseas revenue over the next two years. However, companies face significant execution, social and financial risks.
Two options for financing home loans - bond issuance and secondary market sales - have differing impacts on state housing finance agencies’ margins, leverage and revenue volatility.
Cross-border trade payments are typically slow, costly and inefficient. Harnessing new digital technology, banks settled small cross-border payments without relying on correspondent banks or participating in multiple payment systems and without the need for dollar conversions.
An aging population will affect structured finance transactions to varying degrees, but the impact will be most relevant for RMBS and covered bond collateral.
Slowing economic growth and an approaching peak in fuel consumption amid the country’s carbon transition will reduce demand growth of crude oil in China.
European governments are under pressure to spend more on defence. For Europe's largest NATO members this will complicate efforts to reduce debt and could weaken their credit profiles.
GDP growth is uneven within and across regions, but inflation is normalizing. EM financial conditions should ease in response.