Fed move promises bumpy 2016

摘要

Asian credit is braced for a volatile start to 2016 as the likelihood of more US rate hikes adds pressure on a market already wrestling with fluctuating energy and oil prices, slowing regional growth and rising default rates. The US Federal Reserve raised the range of its benchmark interest rate last week by a quarter of a percentage point to between 0.25% and 0.50%, the first hike in nearly a decade, indicating that the US economy was strong enough to withstand higher borrowing costs. Several debt syndicate bankers dismissed the largely expected increase as a "non-event". Asian investment-grade CDS tightened a paltry 2bp after the decision.