Xi’s Forbearance Mode Ends With Rising SOE Defaults
By Ye Xie, macro commentator at Bloomberg Beijing is moving away from its implicit support for state-owned enterprises in the bond market. Yongcheng Coal & Electricity’s default this week sent a shock wave through the market, causing dollar bonds of several other Chinese state-owned enterprises to tumble. Over the past two months, three of the five…
How COVID Forbearance Gave Banks A Three Trillion Dollar Boost
By Nick Dunbar of Risky Finance If there was one thing that regulators were sure about at the start of the pandemic, it was that it would not become a bank story. Crisis yes, maybe even a touch of market turmoil for a few weeks in March, but never something that would embroil the world’s…