The country’s implicit backstop to all state-linked borrowers has stymied credit and risk analysis. Abandoning it will encourage proper risk management and better bond pricing.
A sizeable number of troubled high yield bonds are from private equity-backed companies. What are the chances their general partner owners will help bail them out?
Moody’s and Fitch Ratings say that emerging market defaults are increasingly likely to hit record highs, with Asia-Pacific corporates looking particularly vulnerable.
As the fallout from last month's Shanshui Cement default continues, mainland asset managers are being urged to strengthen their credit analysis capabilities.