Emerging markets

Saudi banks may transfer as much as $48 billion in legacy mortgages to SRC by 2030, unlocking liquidity and enabling almost $23 billion of securitization for investors.

The outperformance of local-currency debt has led to an unusual situation where the historically riskier bonds are trading at lower yields than those denominated in the dollar — traditionally the world's main haven asset.

The ideas, which are still being hashed out, include lowering fees associated with issuances and simplifying audit requirements.

In a quarterly survey by the New York-based International Association of Credit Portfolio Managers, 57% of respondents expect wider credit spreads in U.S. investment grade debt and 70% in U.S. high yield bonds and leveraged loans over the final three months of the year. Also for the fourth quarter, 66% see rising levels of corporate defaults.

Volkswagen is turning to its Chinese assets for its first auto loan, asset backed securities deal of the year.