Junk Sales Halt as Morgan Stanley Recommends Hedge: China Credit
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The risk of a hard landing in China’s economy has caused the longest drought in dollar-denominated junk bond sales in a year and encouraged Morgan Stanley to recommend buying credit-default protection.
Amid the nation’s worst cash crunch on record, no Chinese speculative-grade companies have marketed dollar notes since Central China Real Estate Ltd. raised $400 million selling five-year securities on May 22, according to data compiled by Bloomberg. That’s the longest stretch since the market went quiet for 95 days through July 24 last year amid economic concerns, according to data compiled by Bloomberg.