, Columnist
Bond Traders Love the Fed. The PBOC? Not So Much
Interest rate volatility engineered by China’s central bank has market players staring into the abyss.
Sure doesn’t look like a bunch of trouble makers from the outside.
Qilai Shen/Bloomberg
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Traders are getting grumpy. Just when the Federal Reserve is buying U.S. corporate bonds and stabilizing markets, the People’s Bank of China appears to be engineering money market chaos without a clear policy agenda.
Even amid a global market meltdown this spring, investors kept their faith in China. While a quarter of U.S. junk bonds got downgraded by Moody’s Investors Service in April, that figure was just 13% in Asia, data compiled by Bank of America Merrill Lynch show.