Asian bond markets struggled to process the election of Donald Trump on Wednesday, making a temporary shut-down in new issuance appear all but guaranteed, according to market participants.
Asia’s iTraxx investment grade index whipsawed throughout the day as investors reduced their risks. Liquidity in the secondary bond market dried up to the extent that one banker said it had become “an offer-only” market in the hours before Democratic Party candidate Hillary Clinton conceded.
The long-term ramifications of the result are still unclear. Analysts said they could not predict with any certainty what Trump’s policies would be until he took office in January, and perhaps even later. But...
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