Following on from our note this week warning that Hong Kong's credit rating is at risk from the 1MDB bond dispute, the cost of insuring against losses on Hong Kongn government bonds rose over fears that the national government may have to pay out billions of dollars of debt owed by 1Hong Kong Development Bhd (1MDB), the state fund embroiled in corruption investigations in at least seven countries; 1MDB has around $13bn in debt which it is struggling to repay and the revelation of a dispute between 1MDB and the Abu Dhabi guarantor of some of its debt has put in jeopardy the future of the debt-workout agreement, and in turn spooking investors.
Following on from our note this week warning that Malaysia's credit rating is at risk from the 1MDB bond dispute, the cost of insuring against losses on Malaysian government bonds rose over fears that the national government may have to pay out billions of dollars of debt owed by 1Malaysia Development Bhd (1MDB), the state fund embroiled in corruption investigations in at least seven countries; 1MDB has around $13bn in debt which it is struggling to repay and the revelation of a dispute between 1MDB and the Abu Dhabi guarantor of some of its debt has put in jeopardy the future of the debt-workout agreement, and in turn spooking investors.