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Tuesday, April 11, 2017

Are we heading out of the woods or back in again?

Heading into the next mile:

Dear friends,

As we embrace the earnings seasons, we could expect some surprises. But there could be a looming danager ahead as seen in the report below.

As such, we should start to seek advice from a professional if unsure of what to do.

Asian Nations Swimming in Debt at Risk From Fed Rate Hikes

Twenty years after the Asian financial crisis and a decade since the global credit crunch, the region is swimming in debt.

The debt binge is spread across companies, banks, governments and households and is inflating bubbles in everything from the price of steel rebar in Shanghai to property prices in Sydney. As the Federal Reserve raises borrowing costs, that means debt is again a concern.

Exposure to China’s slowdown, fluctuating commodity prices and currency volatility are just some of the risks. S&P Global Ratings estimates that of the almost $1 trillion in Asia corporate debt they rate that is due to mature by 2021, 63 percent of it is denominated in dollars and 7 percent in euros.
Bloomberg News April 11, 2017, 5:00 AM GMT+8 Asian Nations Swimming in Debt at Risk From Fed Rate Hikes 
Source: https://www.bloomberg.com/news/articles/2017-04-10/fed-rate-hikes-raise-risks-for-asian-nations-swimming-in-debt

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