The World’s Biggest Bond Bubble Continues To Burst As China Suffers More Defaults

Wednesday, November 11, 2015
By Paul Martin

by Tyler Durden
ZeroHedge.com
11/11/2015

Once China began to mark an exceptionally difficult transition from a smokestack economy to a consumption and services-led model, those who were aware of how the country had gone about funding years of torrid growth knew what was likely coming next.

Years of borrowing to fund rapid growth had left the country with a sprawling shadow banking complex and a massive debt problem and once commodity prices collapsed Рwhich, in a bit of cruel irony, was partially attributable to China’s slowdown Рsome began to suspect that regardless of how hard Beijing tried to keep up the charade, a raft of defaults was inevitable.

Sure enough, the cracks started to show earlier this year with Kaisa and Baoding Tianwei Group and as we documented last month, if you’re a commodities firm, there’s a 50-50 chance you’re not generating enough cash to service your debt:

The Rest…HERE

Leave a Reply

Join the revolution in 2018. Revolution Radio is 100% volunteer ran. Any contributions are greatly appreciated. God bless!

Follow us on Twitter