China's Debt Default Risk Climbs to Highest Since June 2013
- Investors use CDS to express negative view on China: JPMorgan
- Government bonds declining for a third straight week
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The cost of insuring Chinese sovereign debt against default climbed to the highest level since a record cash crunch in June 2013 as a slowing economy erodes confidence in the nation’s assets.
Credit-default swaps protecting government bonds against non-payment for five years rose for a fourth day on Wednesday to 140 basis points, according to prices from data provider CMA. The contracts increased 19 basis points in January, the biggest jump in 16 months. Government notes are falling for a third week.