Monday, April 18, 2016

China Unraveling

Photo Courtesy of Wikimedia Commons

The unprecedented boom in China’s $3 trillion corporate bond market is starting to unravel.

Spooked by a fresh wave of defaults at state-owned enterprises, investors in China’s yuan-denominated company notes have driven up yields for nine of the past 10 days and triggered the biggest selloff in onshore junk debt since 2014. Local issuers have canceled 60.6 billion yuan ($9.4 billion) of bond sales in April alone, while Standard & Poor’s is cutting its assessment of Chinese firms at a pace unseen since 2003.

READ THE ENTIRE ARTICLE FROM BLOOMBERG

FREEDOM FIGHTERS OF AMERICA
FRESH AND TRUE NEWS 24/7 WITH NO HYPE!

No comments: