"Even by the standards of a record-breaking global credit binge, China’s corporate bond tab stands out: $1.3 trillion of domestic debt payable in the next 12 months.

That’s 30% more than what U.S. companies owe, 63% more than in all of Europe and enough money to buy Tesla Inc. twice over. What’s more, it’s all coming due at a time when Chinese borrowers are defaulting on onshore debt at an unprecedented pace.

The combination has investors bracing for another turbulent stretch for the world’s second-largest credit market. It’s also underscoring the challenge for Chinese authorities as they work toward two conflicting goals: reducing moral hazard by allowing more defaults, and turning the domestic bond market into a more reliable source of long-term funding."

https://www.bloomberg.com/news/articles/2021-05-23/china-braces-for-1-3-trillion-maturity-wall-as-defaults-surge

Sensational? For sure.
But Bloomberg is reporting like tabloid.

On Monday, May 24, 2021 at 11:15:45 PM UTC+8, ltlee1 wrote:
> "Even by the standards of a record-breaking global credit binge, China’s corporate bond tab stands out: $1.3 trillion of domestic debt payable in the next 12 months.
>
> That’s 30% more than what U.S. companies owe, 63% more than in all of Europe and enough money to buy Tesla Inc. twice over. What’s more, it’s all coming due at a time when Chinese borrowers are defaulting on onshore debt at an unprecedented pace.
>
> The combination has investors bracing for another turbulent stretch for the world’s second-largest credit market. It’s also underscoring the challenge for Chinese authorities as they work toward two conflicting goals: reducing moral hazard by allowing more defaults, and turning the domestic bond market into a more reliable source of long-term funding."
>
> https://www.bloomberg.com/news/articles/2021-05-23/china-braces-for-1-3-trillion-maturity-wall-as-defaults-surge
>
> Sensational? For sure.
> But Bloomberg is reporting like tabloid.
----------

Another American wet dream. China can take any defaults in its stride. That's better than hoarding trillions of US dollars, which are backed by hot air.

Wakalukong

On Monday, May 24, 2021 at 9:43:16 PM UTC-4, wakal...@yahoo.com.sg wrote:
> On Monday, May 24, 2021 at 11:15:45 PM UTC+8, ltlee1 wrote:
> > "Even by the standards of a record-breaking global credit binge, China’s corporate bond tab stands out: $1.3 trillion of domestic debt payable in the next 12 months.
> >
> > That’s 30% more than what U.S. companies owe, 63% more than in all of Europe and enough money to buy Tesla Inc. twice over. What’s more, it’s all coming due at a time when Chinese borrowers are defaulting on onshore debt at an unprecedented pace.
> >
> > The combination has investors bracing for another turbulent stretch for the world’s second-largest credit market. It’s also underscoring the challenge for Chinese authorities as they work toward two conflicting goals: reducing moral hazard by allowing more defaults, and turning the domestic bond market into a more reliable source of long-term funding."
> >
> > https://www.bloomberg.com/news/articles/2021-05-23/china-braces-for-1-3-trillion-maturity-wall-as-defaults-surge
> >
> > Sensational? For sure.
> > But Bloomberg is reporting like tabloid.
> ----------
>
> Another American wet dream. China can take any defaults in its stride. That's better than hoarding trillions of US dollars, which are backed by hot air.
>
> Wakalukong

What makes a tabloid a tabloid is that it does not tell you the whole and well known truth for those involved.
Surging default rate? Yes, it has increased. And the article used the figure "above $15.5 billion." Yet it failed to point out the figure this year in the US is about $50 billion.

"We have lowered our 2021 leveraged loan (LL) and high-yield bond (HY) default rate forecasts to 4.5% and 3.5%, respectively, from a range of 7%-8% for LL and 5%-6% for HY, with total volume of defaults approximating $65 billion for LL and $50 billion for HY. In addition, we expect the 2022 default rates for both LL and HY to end the year at 4%-5%, down from our originally anticipated 5%-7% level. "
https://www.fitchratings.com/research/corporate-finance/2021-us-loan-default-rate-in-line-with-2020-hy-trending-lower-13-01-2021