![]() dollar-denominated bonds or deferred repayment with bond exchanges since the start. In a country where bankruptcies and debt workouts remain relatively new, Evergrande’s debt-revamp plan due in late July will likely become a benchmark for recovery rates on other developers’ delinquent debt. Twenty-two China high-yield bond issuers, all related to the property sector, have either defaulted on their U.S. “Traditionally, distressed funds will step in at these levels, yet there are too many distressed names at this stage, and many distressed investors are still stuck with companies that defaulted earlier.” New chapter or not, there are still old problems for investors to keep grappling with, especially the slow progress on restructuring at troubled Chinese firms. ![]() The unprecedented bond default event of ‘11 Chaori Bond’ on 5 March, 2014 marked the elimination of the implicit government guarantee. The first onshore public bond default occurred only in 2014. 'The wave of defaults clearly points to higher credit risks, but still limited for systemic risk as economic growth continues to pick up and saving rates are high in China.' This time is different The current wave of bond defaults is dominated by SOEs, unlike in the past years when mostly private companies were unable to make principal or. Defaults by Chinese issuers have exceeded US20 billion so far this year, compared with about US9 billion for all of last year, with property developers accounting for most of the defaults. Fund flow is really poor,” said Carl Wong, head of fixed income at Avenue Asset Management Ltd. The main reason for the high credit ratings and low dispersion of credit spreads is the very short and limited history of defaults in China. How will China defaults be resolved In this episode of Connected With Latham, Hong Kong partner Howard Lam speaks with Kenneth Ho, Goldman Sachs Head of. “There is a lack of new buyers in the China property high-yield space. ![]() Chinese issuers now make up about a third of Bloomberg’s index of Asia high-yield dollar bonds, down from 56% two years ago. and The Economist forecasts a wave of defaults on these loans. That has dramatically reshaped the composition of global investors’ Asian debt portfolios. The Belt and Road Initiative (BRI, or B&R), formerly known as One Belt One Road (Chinese. The new phase that China’s credit market is moving into also comes with a changing landscape, with record defaults by developers leading to a rapidly shrinking universe of junk debt. looked like a rare beacon of strength in a Chinese real estate industry reeling from an unprecedented stretch of defaults.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |