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Will the next run on repo be in Asia?

RepoWatch Commentary:

Reading the following commentaries in the Wall Street Journal, knowing that bankers are developing repurchase markets in many countries, and realizing that our mega-banks are expanding internationally, does it seem that Asian bonds may be the next repo collateral and the next run on repo and the shadow banks could start in Asia? How does the U.S. protect itself from that?

Asia’s bond market comes alive

By Soofian J. Zuberi, head of Asia-Pacific global markets distribution at Bank of America Merrill Lynch

For years, East Asia’s lack of viable bond markets and its companies’ consequent reliance on bank lending sparked concern about the region’s financial stability. But in the past few years bond issuance has accelerated dramatically. From 2000-2010, Asian credit market issuance as a share of global issuance has grown to 23% from 5%, the result of an annual growth rate of 27%.

To read more, click here.

Get ready for a growth supercycle

By Ian Bremmer, president of the Eurasia Group

With the turmoil rattling the Middle East these days, it’s easy to miss the rising tide of optimism about the global economy. The good news is coming from multiple sources. A recent CEO survey from PricewaterhouseCoopers, for example, found a sharp spike in the number of business leaders who see strong growth for the year ahead. And for a long-term forecast, a report from analysts at Standard Chartered bank has produced the biggest buzz.

To read more, click here

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