Bloomberg: Asian bonds, Dollar weakness
An interesting viewpoint by Andy Mukherjee at Bloomberg: Asia Has Money to Burn; Where Are the Assets? makes a case for dollar
If the perceived Asian “savings glut” stems from a shortage of Asian bonds, then it explains why doomsday scenarios for the U.S. currency may not materialize.
At $830 billion, the Asian sovereign bond market is less than a 10th the size of its U.S. and Japanese counterparts. The European market is 12 times as large, according to Jen.
In Hong Kong, India and South Korea, only 1% of housing loans are securitized, while in Japan and Malaysia, the ratio is between 5% and 6%.
Amidst so many bearish calls for the US dollar, it is critical to consider the above possiblity, and what it means for the Indian rupee, gold prices and such.
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