Viom Networks offers to buy GTL Infrastructure for Rs 7,500 crore
Telecom tower company Viom Networks has made a 7,500-crore offer to buy out its competitor GTL Infrastructure, two executives directly aware of the development.
Talks are continuing, as there is a valuation mismatch -GTL promoters are learnt to be eyeing valuations of over 10,500 crore (excluding its debt), the executives quoted above said.
They also added that earlier rounds of talks held during first week of July had not make any headway as Viom was not keen on the merger option being proposed by bankers. Viom had made this offer to GTL last week.
SBI Capital Markets is advising Global Group, the parent company of GTL and GTL Infrastructure, on the possible sellout or stake dilution.
Viom's CEO Arun Kapoor declined to comment when asked specifically if the company had made a 7,500-crore offer to GTL. Viom is 53% controlled by the Tatas, while Kolkata-based Kanorias, founders of Srei, have 27% with foreign institutional investors holding the remaining 20%.
The founder and promoter of Global Group, Manoj Tirodkar, refused to comment, but the company in an e-mail reply to an ET query said: "There are many aspirants who want to acquire our assets or partner with us.
Viom has not entered into any formal discussion with us and hence the question of 7,500 crore or the 10,500 crore being value does not arise. The fact that players like Viom continues to approach and show their interest in GTL Infra is a tribute to the business we have built."
GTL's debt is estimated to be around 14,000 crore. The executives quoted above also clarified that Viom's offer to GTL was subject to two conditions. First, theGlobal Group must reduce its debt in its tower arms to about 7,500 crore post the restructuring. Viom is of the view that GTL cannot sustain a higher debt based on its current cash flows.
Next, Viom has also said that its offer is valid only for a limited period as it shares the view that its competitor's valuations will erode further if the company fails to meet its service level agreements with respect to its clients, they added.
In the past week, almost every single sellside bank and their mother has released a report on "what happens to the US if there is a [default|debt extension|compromise|zombie apocalypse (if one believes Tim Geithner)]. Sure enough, here is Credit Suisse with its three scenarios. This is notable as it presents the binary outcomes for the stock markets as a result of what develops in Congress. The scenarios are: i) debt ceiling extension (market up 3%); ii) debt ceiling not extended (market down 15%); iii) default (market plummets by at least 30%). Of course, if there is really is a default it is game over for equity markets but that is a moot point. Either way, any report that has zero mention of the word gold when contemplating the impact of a US default goes straight into the garbage. Such as this one.
Here is Credit Suisse's scenario summary :
And a brief and largely irrelevant summary of the key outcomes.
What happened during the previous debt ceiling crisis?
We have already had a debt ceiling crisis between November 15, 1995 and 29 March 1997 (with two short episodes of government shutdown, in November 1995 and December 1995 to January 1996), when the Republican party agreed on raising the ceiling to $5.5trn after Secretary Rubin informed Congress that he would stop mailing out Social Security cheques. During those periods bonds yields, the dollar and the S&P all rose a bit.
The difference this time around is that the US is running a budget deficit of 11% of GDP, not of 2% of GDP. Hence, the required fiscal tightening to balance the books if the debt ceiling is not raised is a lot higher. Moreover, this time there is also more fiscal tightening on at the state and local level. [as we presented yesterday]
On to the market impact of the various outcomes:
No debt ceiling agreement: equities markets down 15%
If there is no increase in the debt ceiling for a prolonged period (say 3 months) with no agreement in sight, we believe stock markets could easily fall 15%. As above, we believe we get very close to recession – and if say ISM fell to 40 and credit spreads rose to 4%, the warranted equity risk premium would rise to 5.8%. At the same time, EPS on our model could fall 15%, leading to equity risk premium to fall 5%. This would give equity markets some 12% downside.
We believe that the fall in markets would give politicians a strong incentive to compromise – and we would likely get an agreement (as it was the case with TARP, when the first rejection of the bill on 29th September 2008 triggered a 9% fall in markets and the bill was then passed in a second vote on October 3rd).
In Europe, this would happen at a time when the long-term bank funding market is still almost closed, recent PMIs have been particularly weak (suggesting GDP of just 0.2% quarter on quarter). We believe this makes Europe more vulnerable than normal, especially if the Euro, as seems likely, would strengthen a lot in this scenario. Clearly, weaker global growth and a generalized risk-off trade would make funding issues in peripheral Europe worse.
Overall, we would expect the sharp decline in growth expectations to lead to lower bond yields, as the impact of weaker growth more than offsets investors' concerns about the credit downgrade. On our fair value bond model, each 10 points decline in the ISM reduces the fair value of bonds by 75bps. In this case, investors should focus on secular growth (as it is long duration and benefits from the fall in the discount rate) and noncyclicality (healthcare, telecoms, food retailing, regulated utilities). In addition, we would greatly increase our underweight of cyclicals and with the exception of software (which should prove defensive as in 2007/8). In particular, we would go short of corporate spending related areas, given that corporate spending is typically the high-beta component of growth.
The sectors that have low cyclicality (negative correlation with the ISM) and low leverage (net debt to EBITDA) are pharma, health care equipment, food retailers and software.
In case of default, just be overweight defensives [ZH advice: in case of default, run]
If there was a default, we would simply focus on non-cyclical companies with high FCF yield and low leverage (as we assume that funding markets would dry up and the cost of debt would rise).
Focus on companies safer than governments
Regardless of the outcome of the negotiations over the debt ceiling, we think investors should focus on ultra-safe corporates (those that offer a CDS spread below that of the average G7 sovereign in combination with a dividend yield above the average G7 government bond yield). To the extent that the debt ceiling negotiation in the US and the worries about peripheral Europe drive home the uncertain outlook for government finances, the strong financial position of these corporates will appear increasingly attractive.
Interest rates are at a 12-year high. Just as a person with little or no debt is the most stress free today, companies which have little or no debt are probably the safest bets. It is not that every zero debt company is a good bet. There are companies with no debt but with suspicious management and even fishier fundamentals. It could also indicate very low risk ability which for long term growth is not prudent. But in today's time, where interest cost, combined with inflationary pressure is expected to eat away the margins, it is best to go for companies where one does not have to worry about the debt component. Inflationary pressure is something which even the RBI and the Govt seem to have no handle on. Thus best to bank on some zero/low debt companies.
Complied below is a list of companies who have very low debt, which is evident from their miniscule interest outgo. Take a look and make a well informed choice.
Companies which are zero debt are:
Infosys, Crisil, Gillette, P&G Hygiene, Pfizer, AstraZeneca, NMDC, Nalco, Concor, Engineers India, Bajaj Finserve, Lakshmi Machine Works, Honeywell Automation, Tata Sponge, Chemfab Alkalies, Praj Industries, Lakshmi Automatic Loom.
Companies which have very low debt, where interest outgo per quarter is less than even Rs.50 lakh:
Aventis, PTC India, Zydus Wellness (Rs.1 lakh in Q1FY12), TTK Prestige (Rs.49 lakh in Q1FY12), Shanthi Gears (Rs.16 lakh in Q1FY12), KSB Pumps, Foseco India, Castrol India, Kansai Nerolac, IFB Industries, Eicher Motors, Balmer Lawrie, HUL, CMC, MRO-TEK, Infotech Entp, Oberoi Realty, Wyeth, Thermax.
What came as a revelation was that apart from the cash rich MNCs, which we all knew were debt free and cash rich, were some of the PSU companies which figured in the zero debt companies. Realty companies probably figure highest in terms of high debt companies and in that scenario, to see Oberoi Realty as a low debt company came as a complete surprise. As at 31st March 2011, it had an interest outgo of just Rs.16 lakh. An unheard of phenomenon in realty companies!
Companies like PTC, Zydus, Kansai, Foseco, IFB industries, CMC, MRO-TEK, Infotech Entp, have debt which is extremely paltry with their interest outgo for entire year being not over even Rs.10-15 lakh.
All the above mentioned companies are doing well financially. And being zero/low debt is like the perfect icing on the cake. Infact, coming across cake itself has become a rarity and here, cakes with icing, holds promise!
Most of these companies are fundamentally sound and one can afford to stay put. But in companies where you are not sure about the fundamentals but are going purely based on low debt, then its best to constantly monitor the stock every quarter. Like Lakshmi Automatic Loom – it is a part of the Coimbatore based Lakshmi group but its financials are not steady, though it has been in the black in Q1FY12 and Q4FY11.
Many of the NBFCs have very low debt but in today's circumstances where brokerage houses are finding it difficult to keep things together, going for these stocks, despite being low debt makes no sense.
24% of the stocks listed on the BSE are zero or low debt. That's over 800 shares. Yet not all are great. Thus looking at all debt free stocks with the same outlook would be a folly.
At the same time, a quick look at companies which have huge debt and in the current scenario are sure to face more heat.
Realty companies like DLF, Unitech, Omaxe, HCC, HDIL, Ansal Properties. And after this comes big ticket infra companies like GTL Infra, Lanco Infra, GMR, IVRCL. Others with very high debt are – Kingfisher Airlines, Jet Airways, Rcom, RIL, Alok Industries, Bhushan Steel, Ispat Industries, JSW Steel, JSW Energy, Rajesh Exports, Jaiprakash Associates, SAIL, Adani Power, Suzlon, GE Shipping, Essar Oil, HPCL, BPCL, NTPC, Videocon Industries.
The same logic for low debt companies (but inversely) applies here – not all high debt companies are bad. Here, we have to view debt in terms of its revenue. Heavy debt companies, where continuity of revenue and profitability is visible, the return on equity capital invested is usually higher. And that's not bad!
But currently, its best to go for zero/low debt companies as that is what the high interest regime demands. Its best to have a portfolio based on current macro conditions. Gone are the days of buy it and forget it!
The epic revision in the just revised Boehner plan is to cut a grand total of … $91.7 billion per year for 10 years (back-end loaded of course: 2012 will see just $22 billion in cuts – can't have any real cuts too early or else). The spin is that this is sufficient because the $917 billion in cuts is more than the proposed $900 billion debt ceiling hike, so all shall be well. Of course that is only part one of the two-part debt ceiling hike process. The next step is a $1.8 trillion cut to "protect programs like Medicare and Social Security from bankruptcy." The problem is that Boehner continues along the path of a two-step debt hike, a formulation that Obama will never agree to, since it effectively guarantees him no-reelection chance, as the last thing the people will want is the same bickering as we are experiencing every day again some time in 2012, when the current $900 billion in incremental debt capacity runs out. And actually, with the US debt already $300 billion below trendline and with the government's two pension funds already plundered by a like amount (which means they have a net IOU position), it means that the Boehner plan really buys only $600 billion of dry powder. At a burn rate of $150 billion a month, this means the first step of the Boehner plan buys precisely 4 months before the debt ceiling has to be raised again! Oh yes, this plan also guarantees at least a one notch downgrade to the US debt, with more notches coming up before the end of the year when this whole farce is repeated.
Full release:
BREAKING: Independent CBO Confirms Spending Cuts Exceed Debt Limit Hike in Revised GOP Plan; Bill Now Includes $22 Billion in Deficit Reduction in First Year
Posted by Speaker Boehner's Press Office on July 27, 2011
The Congressional Budget Office (CBO) has released its analysis of the revised Budget Control Act of 2011 today, and CBO's analysis confirms that the spending cuts are greater than the debt hike – affirming that the House GOP bill meets the critical test House Republicans have said they will insist upon for any bill to raise the nation's debt ceiling. Specifically, the CBO analysis confirms the Republican plan will:
Cut and cap spending by $917 billion over 10 years – that's more than the $900 billion debt hike;
Cut $22 billion in spending for FY2012 and hold spending below FY2010 levels until FY2016;
Continue reducing discretionary spending each year compared to President Obama's budget (by $96 billion in 2012, $118 billion in 2013, $115 billion in 2014, $117 billion in 2015, and so on); and
Require Congress to draft proposals that produce reductions of at least $1.8 trillion that help protect programs like Medicare and Social Security from bankruptcy.
Republicans adjusted their spending cut bill after a lower-than-expected score from CBO. This updated analysis confirms what others are saying: the Republican plan "changes the trajectory of spending" and "would keep the debt cutting process going." Unlike Senator Reid's gimmick-filled plan, the Republican proposal includes real spending cuts and reforms that will restrain future spending – and the spending cuts are larger than the debt limit increase.
This bill is far from perfect, but it's a positive step forward that denies President the $2.4 trillion blank check that lets him continue his spending binge through the next election. Learn more about it here.
And here Paul Ryan explains how this grand plan will cut a whopping $22 billion in all of 2012.
The Budget Control Act has been updated to make certain that House Republicans fulfill their pledge to cut spending more than we increase the debt limit. Congressional Budget Office numbers confirm that the updated legislation adheres to this pledge: no new taxes; no blank check for the President; spending cuts greater than the size of the debt limit increase.
The bill has been revised to increase outlay savings, according to the Congressional Budget Office. The Budget Control Act caps budget authority each of the fiscal years from 2012 to 2021. Budget authority – the authority Congress provides to agencies to spend each year – is set at a fixed level for the next decade under the Budget Control Act. Budget authority eventually results in the actual spending of money, which are recorded as outlays. Outlays are recorded when agencies spend out the money they've been provided through budget authority.
The updated legislation makes no changes to the annual budget authority caps, but removes a limitation on outlay calculations that was included in the first version of the bill. This adjustment allows the Congressional Budget Office to provide a more accurate measure of the likely rate of spending. In their new analysis of the Budget Control Act, the CBO estimates that the bill will reduce the deficit by $22 billion in FY 2012, and by $917 billion between 2012 and 2021. Under the bill, the President is given authority to increase the debt, under certain conditions, by up to $900 billion. Based on CBO estimates, the spending savings exceed the amount of this debt increase.
The revised bill will also include a point of order against consideration of a measure that would violate the discretionary spending caps put in place by the bill, which in the Senate would require a three-fifths vote in the Senate to waive. In addition, three provisions from the original bill are modified to address technical timing issues with respect to resolutions of disapproval.
For a review of discretionary spending next year under the Budget Control Act, showing real cuts relative to FY2011, and spending cuts far closer to the House-passed budget as opposed to the President's request to increase government spending:
In the very unlikely event that the United States defaults on its debt obligations, the country's economy would contract by 5 percent and stocks would fall by nearly a third, according to Credit Suisse.
While Andrew Garthwaite and the global strategy team at the Swiss bank see a 50-50 chance of a ratings downgrade of U.S. debt by the major ratings agencies, they remain confident such an outcome would not lead to disaster.
“We think there is a 50 percent chance of a ratings downgrade on U.S. sovereign debt.
This could happen even if the debt ceiling is raised,” Garthwaite, the head of global strategy at Credit Suisse, said in research note.
“We doubt it will have much effect," he continued. "Japan has a 1.1 percent yield and an AA- rating, many U.S. Treasury funds do not have credit-rating limitations and national bank regulators would probably keep risk weightings for U.S. sovereign debt at zero.”
If no budget deal is struck, but the U.S. does not default, Garthwaite predicts a bad time for stocks and the economy.
“As our economists point out, each month of no rise in the ceiling could easily take 0.5-1 percent off GDP.
In this case, equity markets would drop by 10-15 percent, prompting Congress to find a solution, and bond yields would fall to 2.75 percent.” If that proved to be the case, investors would in Garthwaite’s opinion need to get into defensive stocks and out of the dollar.
However, the worst case scenario is clearly an outright U.S. default. That is where things could get nasty, according to the Credit Suisse team.
“This is very unlikely, but if it occurs, GDP could fall 5 percent plus, and equities by 30 percent,” Garthwaite said.
In the event of such a disastrous outcome, Garthwaite predicts the only place to hide would be in cash-rich stocks.
“Worries about the U.S. public finances will likely bring investors to focus on ultra-safe equities: companies with [credit default swap] spreads below that of G7 sovereigns, yet offering dividend yields above government bond yields: Centrica, Sanofi, Novartis, Compass, Pfizer, Philip Morris, Merck.” With fiscal tightening in the cards no matter what the outcome of talks in Washington, Garthwaite is worried about the effect on growth, but not that worried.
“Our main concern is that, on IMF estimates, fiscal tightening in the U.S. will be equivalent to nearly 2.5 percent of GDP next year.” Garthwaite’s economics team predicts that most of that tightening estimated by the International Monetary Fund will not actually take place, and predicts only half a percent of GDP growth being lost as result.
© 2011 CNBC.com
Oregon Democratic Congressman David Wu, accused of an unwanted sexual encounter with a campaign donor's teenage daughter, said on Tuesday he will resign his seat to defend himself against "these very serious allegations."
The decision by Wu, 56, to step down came a day after he announced he would not seek an eighth term in office, as Nancy Pelosi, the top-ranking Democrat in the House of Representatives, referred the matter to the House Ethics Committee for investigation.
Wu becomes the latest in a long line of politicians from both parties to become caught up in sex scandals over the years, and the second House Democrat in little over a month to have his tenure cut short by such a controversy.
New York Representative Anthony Weiner resigned in June after he admitted lying about sending lewd photos of himself to women over the Internet.
Wu's conduct has been called into question previously. He acknowledged earlier this year he was undergoing psychiatric treatment after his staff complained of erratic behavior, including his e-mailing of a picture of himself dressed in a tiger costume.
Wu, the first Chinese-American elected to Congress, did not give a precise date for his resignation, saying only that he planned to step down "effective upon the resolution of the debt-ceiling crisis." Congress faces an early August deadline to pass legislation raising the nation's debt ceiling to avoid a U.S. default on its obligations.
While he made no explicit mention of the exact misconduct he is accused of, Wu said in his statement, "I cannot care for my family the way I wish while serving in Congress and fighting these very serious allegations."
SPECIAL ELECTION
Wu represents Oregon's heavily Democratic 1st Congressional District, which encompasses the western side of Portland, the state's largest city, as well as more rural areas in Oregon's northwestern corner.
The governor will call for a special election to fill Wu's seat for the remainder of his term.
Two other Democrats already had declared their intention to challenge Wu in next year's primary before the scandal broke -- state labor commissioner Brad Avakian and state lawmaker Brad Witt of Clatskanie, Oregon, northwest of Portland.
No Republicans have immediately announced plans to run. But Oregon Republican Party Chairman Allen Alley called the 1st District "absolutely a winnable Republican seat," citing what he described as a shift in the national political tone.
Although Democrats account for 42.4 percent of registered voters in the district, compared with 30.1 percent for Republicans, a sizable bloc, 27.5 percent, are registered as independent. In 2010, Wu's Republican challenger, Rob Cornilles, lost by 10 percentage points.
The latest allegations against Wu surfaced last week when the Portland Oregonian reported the daughter of a high school friend who contributed to Wu's campaign accused him of making an unwanted sexual advance around Thanksgiving of last year.
Details of the nature of the alleged encounter have not been disclosed. Wu has not denied the accusation and has acknowledged more than once the allegation was "serious."
The Oregonian newspaper said Wu's accuser, who has not been identified, was from Orange County, California, graduated from high school in 2010, and was 18 at the time of the incident.
Indian travel services firm Cox & Kings Ltd is in talks to acquire European holiday specialist, Holidaybreak Plc., in what can be the biggest overseas deal in the travel services industry.
Founded in 1973, Holidaybreak is based in Northwich (UK) and offers an extensive portfolio that includes camping brands like Eurocamp and Keycamp, an adventure holidays business (Explore) and the Hotel Breaks division.
According to Holidaybreak, the discussion may or may not lead to an offer at the price of 432.1 pence in cash per ordinary share. However, Holidaybreak's scrip shot up 12 per cent and was trading at 412 pence a share on the London Stock Exchange in early trading hours on Tuesday. At this price, the firm has a market capitalisation of £290 million ($475 million).
At the indicative offer price of 432.1 pence a share, the deal will value Holidaybreak at £305 million ($500 million), according to VCCircle estimates.
"As part of its overall strategy for growth and expansion, the company does evaluate opportunities from time to time. In line with the company's growth strategy, it is in talks with Holidaybreak Plc., a company listed on the London Stock Exchange, which may or may not lead to an offer for shares in Holiday Plc. At this stage, there is no certainty that any offer will be made by the company or that any offer, if made, will be acceptable to the shareholders of Holidaybreak Plc.," Cox & Kings said on the proposed Holidaybreak deal.
On the Bombay Stock Exchange, the shares of Cox & Kings closed at Rs 197.8, down 2.25 per cent. This could be a reaction related to investor concerns of a large international acquisition and potential impact on the balance sheet.
In April this year, the company's board had said that it might raise up to Rs 1,500 crore through issue of shares/convertible instruments, besides raising the borrowing power of the firm from Rs 1,000 crore to Rs 1,500 crore.
The firm had also got the nod from FIPB, the nodal body monitoring foreign investment in India, to bring in FDI worth Rs 750 crore. It now plans to use the proceeds for acquisitions and new business launches, besides funding its current operations.
Mumbai-based Cox & Kings had recently teamed up with other shareholders of the privately held US-based travel management firm Radius, to pump in fresh capital in a multi-million dollar recapitalisation deal. The Indian company already held stake in Radius.
Cox & Kings is one of the world's oldest travel services brands, established in 1758. It is a premium brand which operates across 20 countries through its offices and through franchise sales shops.
One of the largest municipal bankruptcy of United States to be announced in near future as Jefferson County of Alabama State hired lawyers for possible bankruptcy filing as it is unable to pay its more than $3 billion debt for its sewer system.
The Jefferson County Commission approved resolutions Tuesday to hire prominent bankruptcy lawyers and to sell bonds later in case money is needed to emerge from bankruptcy.
Jefferson is Alabama's most populous county and seat of Birmingham. It's been trying for three years to avoid filing bankruptcy over debt payments it can no longer afford.
Two of the five commissioners say there's an 80 percent chance the county will file bankruptcy. The vote could come at a meeting scheduled for Thursday in Birmingham.
The commission president, David Carrington, says other possibilities include extending talks with creditors or accepting a settlement offer.
News Highlights - Week of 18 - 22 July 2011
Consumer price inflation in Malaysia accelerated to 3.5% year-on-year (y-o-y) in June, the highest level in 27 months, on the back of rising food and transportation prices. On a month-on-month (m-o-m) basis, consumer price inflation stood at 0.3% in June. In Hong Kong, China, the composite consumer price index rose 5.6% y-o-y in June, after climbing 5.2% in May, primarily driven by increasing food and housing rental prices.
* The Bank of Korea has restricted foreign exchange agencies' investments in foreign-currency-denominated bonds issued domestically by local enterprises for the purpose of Korean won financing, effective 25 July.
* Last week, Korea Housing Finance Corporation priced a USD500 million 5.5-year covered bond at a coupon rate of 3.50% and Samsung Securities issued a KRW300 billion 3-year bond at a coupon rate of 4.33%. In the Philippines, power conglomerate First Gen Corporation offered PHP10 billion worth of perpetual preferred shares last week with a dividend rate of 8% per annum. In Thailand, real estate developer Sansiri issued a THB1 billion 5-year bond carrying a coupon rate of 5.4%.
* In Singapore last week, water treatment company Hyflux issued a SGD100 million 5-year bond carrying a coupon rate of 3.5%; real estate developer Joynote issued a SGD180 million 5-year bond and a SGD320 million 7-year bond at coupon rates of 2.585% and 3.408%, respectively; and Singapore's Housing Development Board sold a SGD600 million 10-year bond at a coupon rate of 2.815%.
* The Export–Import Bank of China plans to issue CNY24 billion worth of bonds in two tranches. The China Three Gorges Project plans to issue a 3-year CNY5 billion medium-term note. In Indonesia, Medco Energi Internasional plans to auction USD50 million–USD100 million worth of bonds, while Permodalan Nasional Madani and Nippon Indosari Corpindo plan to sell IDR300 billion and IDR500 billion worth of bonds, respectively. Meanwhile, the Treasury Department of Thailand announced its plan to issue a THB3 billion securitized bond to finance property development projects.
* Japan recorded a trade surplus of JPY70.7 billion in June after posting a deficit of JPY855.8 billion in May. Singapore's non-oil domestic export growth eased to 1.1% y-o-y in June from 7.6% in May, due to lower shipments of electronic goods and declining sales of pharmaceutical products. The Philippines' balance of payments surplus soared to USD5 billion in 1H11 on the back of strong portfolio inflows and overseas Filipino remittances.
* Indonesia's car sales fell 0.3% y-o-y in June, while domestic motorcycle sales rose 0.8% y-o-y. In Thailand, total car sales decreased 0.4% y-o-y in June, following a 10.2% fall in May. In Japan, department store sales rose 0.3% y-o-y in June after registering a 2.4% decline in May.
* Government bond yields fell last week for most tenors in Indonesia, the Philippines and Thailand, while yields rose for all tenors in the People's Republic of China (PRC), the Republic of Korea, and Viet Nam and for most tenors in Malaysia. Yield movements were mixed in Hong Kong, China; and Singapore. Yield spreads between 2- and 10- year maturities widened in Hong Kong, China; Indonesia; Malaysia; Singapore; and Thailand, while spreads narrowed in most other emerging East Asian markets.
