A North Korean navy truck carries the 'Pukkuksong' submarine-launched ballistic missile (SLBM). Photo: Reuters, Damir Sagolj

Markets seem impervious to significant geopolitical risk in Asia, specifically the standoff between North Korea and the US, and investors continue to reach for the riskiest of Asian credit, writes Jonathan Rogers for The Asset.

Several weeks ago the first Triple C issue to price since 2013, from Indonesia’s Indika Energy, was met with healthy demand, as a recovery in commodities has given rise to perhaps unjustified exuberance. As was the case following French elections on Sunday, a “glass is half-full” mindset is spreading, and bullishness across a range of asset classes is growing.

But Rogers is not convinced this is warranted and goes so far as to describe the prevailing price action in Asian credit as “surreal.”

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