2016-04-19

China Corporate Bond Yields Climb

Bloomberg: It's All Suddenly Going Wrong in China's $3 Trillion Bond Market
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 61.9 billion yuan ($9.6 billion) of bond sales in April alone, and Standard & Poor’s is cutting its assessment of Chinese firms at a pace unseen since 2003.

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