TorontoBoyChina gov't bonds doing well, but private firm bonds spread widening, indicating increased risk. Spreads of 1k basis points/10% is scary, junk status.
Relative risk increasing even compared to distressed countries such as Agrentina and Turkey.
#China property firms defaulted on bond repayment. One #bond yield is 13.75% #Deleveraging hits them hard.
#US to raise rates 4x next year. This will only make things worse for 3d world.
China’s deleveraging campaign takes a toll on its private sector
Nicholas Spiro says an upswing in the Chinese equities market can’t disguise the beating its private firms have taken due to government efforts to rein in debtFurthermore, these worrying signs appear unlikely to ease as long as central banks dial back their stimulus measures