Bond Market Chaos from Legoland ABCP Default The chaos in the bond market has been aggravated by the asset-backed commercial paper (ABCP) crisis at Gangwon-do’s Legoland. After the EOD at Legoland ABCP owned by Gangwon Midway Development Corporation (GJC) on September 29, companies are having difficulties raising funds due to growing anxiety that local government credit is unreliable. As of October 19, the credit spread reached 125bp, the highest level in 13 years and 2 months since August 13, 2009 (129bp). From the 1st to the 20th of this month, the issuance of corporate bonds amounted to only KRW 1.23 trillion, a 63.16% decrease from the same period last year. […]