Rising Debt

Asian debt is becoming less attractive as governments cut interest rates to help stimulate their flagging economies (1). The sheer volume of Chinese sovereign debt maturing in 2020 is exasperating an already strained market (2) with more high-profile defaults on the horizon (3). Japan joins the ranks of nations issuing super-long-term debt with their first half-century bond (4).

Myanmar is poised to issue its first 10-year bonds to facilitate the rise of their insurance sector(5).

The economic slowdown seems to be more than some can bear to think about as continued talks of “rallies” (6) mix in with the news of impending recession. US corporate bonds are facing a tougher market as more investors avoid US debt entirely to protect clients from sudden drops in price (7) and the debt binge of corporate America (8).

Despite China’s debt-to-GDP rising to over 300% (9), China continues to issue “special bonds” in the hope of getting 2020 off to a good start (10) despite a slew of bond defaults (11) hitting state owned corporations (12).

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References

1. Rate cuts by Asian central banks to bring down sovereign bond yields: Reuters poll

2. Worst Isn’t Over for Chinese Bonds as Supply Surge Looms

3. China Faces Biggest State Firm Offshore Debt Failure in 20 Years

4. Japan’s Yield Curve Control Regime Is Coming To America

5. Myanmar to commence 10-year bond auctions ‘soon’

6. Supercharged Indonesian Bonds Have All These Reasons to Rally

7. Pimco shuns US corporate bonds on fears of possible rapid fall in prices

8. Binge watching: Could corporate debt sink the U.S. economy? | Capital Ideas

9. As Africa Drowns In Debt To China, IMF Sounds The Alarm

10. China Accelerates $142 Billion Bond Sale to Boost Economy (1)

11. China Faces “Systemic Risk” From Debt Cross-Default “Chain Reaction”, Top Central Bank Advisor Warns

12. China’s “Moment Of Reckoning”: $38BN State-Owned Giant Announces Largest Dollar Bond Default...