Advantage Singapore as HK hit by basis swap.

In this article, the author analyzes the bond market competition between Singapore and Hong Kong, China, in 2008. According to the author, Hong Kong enjoyed a strong year in 2007 while the Singapore dollar bond market fell. But in 2008, the author observes, Hong Kong is stalling and Singapore is growing strongly. He attributes the decline of the Hong Kong bond market to the unfavorable basis swap movements. He notes that Singaporean investors are more isolated from the turmoil in the international markets.