China Defaults Set to Worsen as $8.6 Billion Bonds Due Next Year
- China high-yield firms rely more on short-term debt: MS
- Stressed issuers see 40% of their dollar bonds due in 2020
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A record pace of defaults hit China’s domestic bonds this year. In 2020, it could be the offshore market’s turn.
That’s because of a looming wall of dollar debt, issued by now-stressed borrowers, that comes to maturity. There’s $8.6 billion of offshore bonds coming due next year that currently have at least 15% yields -- classifying them as stressed, according to data compiled by Bloomberg.