Losses on bonds from defaulted companies are likely to be higher than in previous cycles, because U.S. issuers have more debt relative to their assets, according to BoA Corp. strategists. Those high levels of borrowings mean that if a company liquidates, the proceeds have to cover more liabilities. Source: Bloomberg
Six railcars carrying dozens of South Korean officials and engineers will inspect 1,200km (745 miles) of track over 18 days, according to the South’s unification ministry. The survey required special permission from the United Nations to take prohibited goods into the North, which remains under heavy economic sanctions over its nuclear weapons programme. South Korean officials will use the study to draw up plans for modernising the North’s ageing rail lines, most of which date from the early 20th century. South China Morning Post
The U.S. has accused Iran of stepping up violations of a UN ban on arms exports by increasingly supplying weapons to militant groups across the Middle East and continuing its missile program. Source: Radio Free Europe
Kosovo has spurned calls from the United States and European Union to eliminate a new 100 percent tariff on Serbian imports, saying the levy will stay until Serbia recognizes Kosovo’s sovereignty and reaches a normalization agreement with its neighbor. Source: Radio Free Europe
