Two Large Chinese Borrowers Said to Miss Bond Payments

The video discusses the significant increase in corporate defaults in 2018, with expectations for continued growth in 2019. It highlights two major companies, China Minsheng Investment and Wind Time Energy, facing financial difficulties. Analysts attribute these issues to short-term borrowing against long-term investment cycles. Kyle Bass provides insights into the risks associated with China's bond markets, particularly concerning dollar-denominated debts. Despite the defaults, they represent a small part of China's economy and may introduce necessary financial discipline.

Which two companies were highlighted as major defaulters in 2018?

• China Minsheng Investment and Wind Time Energy

• China National Petroleum and Sinopec

• Huawei and ZTE

• Alibaba and Tencent

What is a significant reason for the increase in corporate defaults according to analysts?

• Short-term borrowing with long-term investment cycles

• High interest rates

• Increased competition in the market

• Lack of government support

What is expected to happen to corporate defaults in 2019?

• They will continue to increase

• They will decrease significantly

• They will be eliminated completely

• They will remain the same

What is a major risk for China's bond market according to Kyle Bass?

• Dollar-denominated debts

• Trade tensions with the US

• Domestic market control

• High inflation rates

How do the defaults in China compare to the global number of defaults?

• They are smaller

• They are about the same

• They are not comparable

• They are much larger