By David Yong

  • Started to see heightened risk aversion toward junk issuers in summer; corporates struggling to refinance defaulted instead of restructuring
  • Corporates like Bumi Resources would have been refinanced but market more risk averse over last 2-3 months, specifically in industries like mining
  • Risk aversion to become more widespread; will affect real estate as well
  • Seeing different pricing for risk in last 2-3 mths
  • Too much leverage resulting in more opportunities emerging in China, India and Australia
  • Co. preparing for lot more opportunities in 2015, in shipping, coal mining and property
  • Co., which trades loans and high-yield bonds, looking to build primary business platform and continue to grow Europe business

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