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Lisa Abramowicz

A Debt Balloon With Nowhere to Go But Down

Blockbuster bonds, for now.

Blockbuster bonds, for now.

Photographer: GREG BAKER/AFP/Getty Images

Chinese skyscrapers apparently aren’t scaring bond investors, but they probably should. 

Debt buyers have brushed off concerns about China’s overvalued real estate and slowing growth this year. They have been snapping up speculative-grade bonds of Chinese companies, even those sold in the U.S., where the appetite for risk is waning in general.