Sizzling credit markets in Asia show investors taking more risk

SINGAPORE: Red-hot credit markets are showing more signs that investors are taking bigger risks, as a mining giant offered one of the highest-yielding securities in Asia this year and one of the region’s lowest-rated countries sought to sell debt.

Vedanta Resources Ltd kicked off an offering of US dollar bonds with an initial price guidance in the 14.5% area, amid mounting pressures at the company. The Lao People’s Democratic Republic is holding investor calls from yesterday for a potential senior unsecured benchmark five-year note as gains in Asian credit extend into a third week.