World News Insights
1-3 Minute Gist
Search, personalize, or simply browse. Follow the world around you from gist and context to insights.
Who we are | Our Credo | Ways of using Lyrarc | FAQ | Send Feedback | First Letter From the Editor
Sign up. It's free and easy to use
Create an account
to personalize your feed of articles and topics.
All Topics Article
As the Pace of China's Junk Bond Sales Grows So Do Worries
Keywords:
China's housing developers are increasing the issuance of high yield bonds in 2013. European and American companies have issued $120 billion in junk bonds for Jan-March 2013. Chinese companies issued $8 billion to overseas investors for Jan-March 2013, increasing from $2.3 billion in junk bonds issued in the same period for 2012, according to Dealogic. Yields are dropping. In the U.S. yields have dropped from an historical level of 10% to 6% on junk bonds. The same pattern is seen for China's junk bonds. Yields for bonds issued by Chinese housing developers have dropped from 11-12% to 7-8%. Investors are taking on higher risks on these bonds and the current yields do not reflect higher risk, as the bonds are issued from overseas subsidiaries for foreign investors. As with the bankruptcy of Suntech Power, foreign bondholders could lose everything. These junk bonds are not backed by the company assets in mainland China, and local banks and creditors in China come first in getting their money back.
Junk bonds issued by China's housing developers in 2013-2014 and the higher risks to foreign investors
09/21/2011
The yields on these bonds have declined from 11-12% in 2012 to 7-8% in 2013. Investors risk losing everything as the bonds are issued by foreign subsidiaries and are not backed by the housing developer's assets in China. Creditors and banks in China are the first to get their money back in a bankruptcy as in the case of the bankruptcy of Suntech Power, while foreign bondholders risk complete losses. Developers in China are increasing issuance of junk bonds as there is limited access to other sources of financing.
Grouped Articles
Asia Goes on a Debt Binge as Much of World Sobers Up
Wall Street Journal 05/24/2013
A Warning Light to Alert the I.M.F.
New York Times 09/21/2011
I.M.F. Tells China of Urgent Need for Economic Change
New York Times 07/17/2013
Critics Decry Risks Posed by Link Between China's Banks and Bonds
Wall Street Journal 08/16/2013
Bond Market in China May See First Local Default
New York Times 03/04/2014
The Man at the Center of Solar-Panel Maker Suntech's Fall
Wall Street Journal 05/03/2013
The junk bond market for U.S., Europe and China 2012-2014
03/28/2013
Grouped Articles
Wall Street Journal 05/11/2013
Bond Market in China May See First Local Default
New York Times 03/04/2014
Default Signals Growing Maturity of China's Bond Market
New York Times 03/07/2014
Why Investors Shy Away From China’s $6.4 Trillion Bond Market
Wall Street Journal 07/23/2015
The Stock Market Is Missing the Warning From Junk
Wall Street Journal 12/07/2015
As the Pace of China's Junk Bond Sales Grows So Do Worries
New York Times 03/28/2013
The U.S. credit boom and growth in issuance of junk bonds in 2012-2013
09/21/2011
A 55% increase in the issuance of junk bonds in the U.S. in 2012 raises alarm signals at the U.S. Federal Reserve. One group of Fed governors, including Jeremy Stein and Richard Fisher, calls for caution in Fed policy.
Grouped Articles
Wall Street Journal 05/11/2013
When Model Borrowers Bite Back
Wall Street Journal 05/28/2013
A Warning Light to Alert the I.M.F.
New York Times 09/21/2011
Weâre All Still Hostages to the Big Banks
New York Times 08/25/2013
The Stock Market Is Missing the Warning From Junk
Wall Street Journal 12/07/2015
Fed Split Over How Long To Keep Cash Spigot Open
Wall Street Journal 02/20/2013
We took a different way to help millions around the world build educated informed mindsets that affects and shapes their lives. For a future that is open, global and digital, with everyone having access to high quality information. We believe in the renewal of America, renewal of Europe, the renewal of India, the rest of Asia, Latin America and Africa. The renewal of our supply chains, health, education, infrastructure, as we rebuild our countries after the pandemic. Literacy and knowledge we believe cannot thrive and grow in a world of web bots, web crawlers, or AI. This requires human curiosity, human learning, and human imagination. We take as inspiration the saying- “One has to be free, and as broad as sky. One has to have a mind that is crystal clear, only then can truth shine in it.” Every contribution whether big or small is precious- in this crisis and ahead.
Support Lyrarc from as small as $1
Terms and Conditions | Copyright Policy | Privacy Policy | Contact Us