In China, Less Than 20% Defaulted Bonds Have Been Paid Back
- Authorities, state-owned firm support help repayments: Moody’s
- Lack of distressed bond trading hampers recovery prospects
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China’s corporate debt market is home to more and more defaults - and if you own one of those bonds, don’t expect much back.
That’s the conclusion from a Bloomberg News analysis of the 84 publicly-sold notes that have defaulted since 2014. Since China’s first company bond collapse in that year, the local market saw a 17 percent repayment rate on 80.3 billion yuan ($12 billion) of missed principal or coupon payments as of Aug. 27, Bloomberg-compiled data show. Globally, senior unsecured bondholders get about half their money returned, according to Moody’s Investors Service.