China Bond Selloff Spreads to Higher-Quality Dollar Bonds

The video discusses the spread of a sell-off in the Chinese bond market, initially triggered by high yields on Chinese dollar junk bonds. This sell-off is affecting higher-rated property developers and the broader market for Chinese investment-grade dollar bonds. The focus then shifts to Evergrande, which faces a significant coupon payment deadline to avoid default, potentially leading to restructuring. Other Chinese firms like Kaiser and Jango are also under scrutiny due to their substantial offshore dollar debt and default risks.

What was the initial trigger for the market sell-off in China?

• Trade tensions with Europe

• Increase in oil prices

• Low interest rates in the US

• High yields on Chinese dollar junk bonds

Which two property developers are mentioned as being affected by the sell-off?

• Alibaba and Tencent

• Jango and Kaiser

• Country Bar Garden and Vancouver

• Evergrande and Kaiser

What percentage of the Chinese offshore debt market is made up of investment-grade quality debt?

• 50%

• 70%

• 30%

• 90%

What is the potential consequence if Evergrande misses its coupon payment?

• It will lead to a stock market crash

• It could be the first major public bond default by Evergrande

• It will result in a government bailout

• It will cause a rise in property prices

Which firm is noted for having a significant amount of offshore dollar debt, more than half of Evergrande's?

• Kaiser

• Jango

• Country Bar Garden

• Vancouver