Corporate Asia May Struggle with Rate Rise

Corporate Asia has taken advantage of ultra-low interest rates over the past few years, loading up on debt, but with rates set to rise, there may be risks ahead.

“With the U.S. Federal Reserve expected to begin normalization of policy early next year, so too will begin the end of a prolonged downtrend in borrowing costs for corporates,” ANZ said in a note last week. “Corporate Asia — [which] has benefitted significantly from the abundance of liquidity in this low interest rate environment — is not entirely immune.”

Overall, ANZ believes Southeast Asian and Indian corporates didn’t overextend themselves, with economies likely to continue growing robustly and companies likely to remain profitable.


Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at Visit to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.