Jul
11
China’s Junk-Rated Bond Issuers Are Finding a Haven in Loans
By-
Bond investors tend to be more risk averse, Credit Suisse says
- Some China property companies borrow at cheaper cost via loans
With the Federal Reserve driving up dollar borrowing costs and China’s deleveraging campaign stoking fears of default among fixed-income investors, Chinese debtors are increasingly turning to the loan market for funding.
Chinese companies have some $76 billion of dollar bonds to repay in the coming year, and face the both higher yields and a weaker exchange rate, thanks in part to U.S.-China trade tensions that brought an end to five straight quarters of gains for the yuan. High-yield issuers are especially vulnerable, with authorities recently looking at cracking down on a loophole that let them sell dollar debt with less than one-year maturity without pre-approval…
China’s Junk-Rated Bond Issuers Are Finding a Haven in Loans
