Although China’s sovereign and corporate yields look attractive when compared with low returns available elsewhere, investors remain wary. Finding true opportunities and understanding the risks of the Chinese market aren’t easy for foreign investors.
Nearly a decade after the global credit crisis, a new fixed-income ecosystem is taking form.
Characterized in state media as the “original sin” of China’s financial system, leverage has swelled over the past decade -- partly because policy makers were trying to cushion a slowdown in growth from the old normal of 10 percent plus.
Tracking the Twitter feeds of key day traders is seen as one way to track potential market movements, as these so-called “Locust Lords” can quickly sway other day traders to act with a single tweet.
The case against emerging markets is gaining steam in one corner of the bond world.
Turns out that China’s new Bond Connect with Hong Kong isn’t just good for foreigners. Offshore Chinese money is using the channel to bring money back home, taking advantage of opportunities in domestic credit products.
If markets are braced for a new dawn for risk assets bereft of monetary stimulus to juice returns amid record U.S. corporate leverage, credit investors remain remarkably sanguine.
Brexit, a minority government and an end to central bank asset purchases propping up the bond market have not deterred companies from issuing new debt in the U.K.’s embattled currency.
Bloomberg’s Global Fixed Income League Table Report for H1 2016.
It’s high season for fretting over high-yield debt.