China May Be Set for Rare Property Defaults, Neuberger Says
- Weaker developers may face even higher borrowing costs: Ru
- There haven’t been defaults on publicly traded builder bonds
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Chinese developers may be headed for rare defaults on their debts as rising interest rates make it harder to roll over record borrowings, according to one of the few foreign money managers selling local financial products to the nation’s investors.
Smaller property firms might miss payments on bonds this year after the government’s leverage curbs pushed up borrowing costs, according to Neuberger Berman, which started its first onshore private fund this month for qualified investors, with a focus on fixed income. There haven’t yet been any defaults on publicly issued bonds from developers in China’s local market.