Skip to content
Subscriber Only

Easiest Job in Bonds Turns Exhausting as China Defaults Soar

  • Bond investors in China can no longer ignore credit risk
  • Market veterans share due diligence tips for an opaque market
Updated on

Until a few years ago, figuring out whether a Chinese company would repay its domestic bonds was simple: the answer was always yes.

These days, it’s not so easy. As default rates in China swell from zero to levels approaching those of a normal credit market, the nation’s fixed-income investors are working a whole lot harder to earn their keep.