Challenging conditions so far
Credit markets have had a tough start to 2022, with prevailing technical influences and ongoing credit themes now mixed with the return of geopolitical concerns following Russia’s invasion of Ukraine.
For now, credit implications for SGD credit will be indirect, with limited or manageable direct exposure to Russia and Ukraine. That said, the indirect impact from rising costs and tighter market liquidity will become more direct if the situation prolongs. Issuers from the finance and commodity sectors will have the most direct impact. However, we do not see an immediate impact on their fundamentals.
