China's Problems Hit It All at Once
Bad debts hurt its economy and companies right in the middle of trade talks.
A boatload of troubles.
Photographer: AFP/Getty Images
China sure picked the wrong time to have a massive debt problem.
The most-read story on the Bloomberg Terminal today is about how two big Chinese companies apparently failed to make key debt payments this month, as bond defaults and corporate failures surge across the country. This is happening while trade negotiators are in Beijing trying to hammer out a deal to avert big U.S. tariffs on Chinese goods starting next month. J. Kyle Bass and Daniel Babich of Hayman Capital Management – the hedge fund that made big, correct bets on subprime mortgages ahead of the crisis – write this is a golden opportunity for President Donald Trump to wring concessions from China.