PETALING JAYA: Credit yield spreads in the local bond market could widen in the latter part of the year if the eurozone sovereign debt crisis is unresolved and the US economy remains weak, resulting in the outflow of funds from the domestic market.
Malaysian Rating Corp Bhd chief executive officer Mohd Razlan Mohamed said there was more room for credit yield spreads to increase than decrease from current levels if economic growth were to sharply decelerate and signs of corporate weakness were to rise.
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