As advisory and underwriting business in North America and Europe disappeared in the wake of the credit crunch, I-banks increasingly turned to a booming market in Asia. But now, Asia, too, is beginning to dry up. So far this year, new capital raising activity is running at half of last year’s rate.
Let the mass firings begin.
The volume of funds raised on Asian stock markets has halved this year to its lowest level since 2003, according to Thomson Reuters. Stock-issuance volume on exchanges in Japan and Singapore hasn’t been so low since 1998.
In public-debt markets, volume is down 41%, evidence that Asia hasn’t escaped the credit crunch as optimists once hoped.
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