South Korea issue isn't isolated to corporate debt or construction, it's the whole system, especially the households.
Too leveraged. bloomberg.com
Too leveraged. bloomberg.com
And there is a country that is even more leveraged in EM Asia - CHINA!!! Yes, totally.
What's wrong w/ leverage you say if they are owned onshore? Shouldn't that limit the problem? Well...
Debt has to be repaid & so sustainability depends on either higher income or lower costs
What's wrong w/ leverage you say if they are owned onshore? Shouldn't that limit the problem? Well...
Debt has to be repaid & so sustainability depends on either higher income or lower costs
But growth isn't accelerating and costs aren't going down. So 2022 has been a disaster for sectors that are:
a) leveraged
b) lower income
c) higher costs
a) leveraged
b) lower income
c) higher costs
All road to Asia recovery in 2023 depends on this:
a) The Fed to be less hawkish, better yet to pivot
b) Costs to go down, both inputs and rates
c) China to stop being a drag via imports and start importing as US and EU demand sags in 2023.
a) The Fed to be less hawkish, better yet to pivot
b) Costs to go down, both inputs and rates
c) China to stop being a drag via imports and start importing as US and EU demand sags in 2023.
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