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Opalesque Exclusive: Investors warned of sovereign debt exposures in near term From Christine Gaylican, Opalesque Asia :

Investors and managers are warned on their vast exposures to sovereign credit especially in emerging Asia and Latin America in the near term.

Experts, including Hong Kong’s Securities and Futures Commission (HK-SFC) CEO Martin Wheatley, pointed out recently that although investors and managers’ favourite in the last 10 months, sovereign wealth funds’ issued bonds are showing extreme credit volatilities once again.

In a luncheon conference with the American Chamber of Commerce in Hong Kong on Nov.30, Wheatley said investors should be very alert to their exposure to sovereign credit risks, commenting on the impact of the recent Dubai debt default that shook the Asian region’s capital and equity markets.

“Recent market volatility suggests many risks remain in the global market. The pricing of sovereign risk may not be where it needs to be. Although one set of risks may be better understood, another set of risks may be created, even at this moment, which is not yet on people’s agenda,” said Wheatley, according to a transcription acquired by Opalesque.

Asia has more SWFs exposures in 2009

In a related report by Asianinvestor.net (Source), a Barclays Capital report said that “Asia-based institutions accounted for a higher s......................

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