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
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.