China’s Junk Bonds Are Suddenly the World’s Hottest Credit Trade
- Also, banks spur Europe’s busiest week ever for bond sales
- Bond buyers brace for more surprises from the Bank of Japan
A housing project in Beijing.
Photographer: Nelson Ching/Bloomberg
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Editor’s Note: Welcome to Credit Weekly, where Bloomberg’s global team of reporters will catch you up on the hottest stories of the past week while also offering you a peek into what to expect in credit markets for the days ahead.
As the meltdown of China’s property sector pushed developers into default and drove the prices of their bonds to pennies on the dollar, hedge funds and other buyers of troubled assets swooped in to make a bet that Beijing would ultimately step in to stem the crisis.