Check this out from Bloomberg on the good news side of China bond defaults
- The implicit government backstop on China corporate bonds is gone
- With a steady rise in delinquencies, investors are now distinguishing among issuers based on perceived credit quality
- "We're going much more to a proper market pricing," said Sean Taylor, chief investment officer for the Asia Pacific region at Deutsche Asset Management in Hong Kong. "What we have now is a lot more differentiation and there's more opportunities to make money."
More here: China Bond Defaults Work Wonders in Introducing Pricing for Risk