“Last Bubble Standing” Bursts – China Junk Bond Risk Soars
by Tyler Durden
ZeroHedge.com
04/15/2016
In January we pointed out “the last bubble standing,” as China’s crashing equity market had spurred massive inflows – directed by a “well-meaning” central-planning committee’s propaganda – sparking a massive bubble in Chinese corporate bond markets (in an effort to enable desperately weak balance-sheet firms to roll/refi their debt and keep the zombies alive). That has now ended as China’s junk bond risk has soared to 5-month highs with its worst selloff since 2014. As HFT warns, “we should avoid junk bonds.”
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