China Heads Towards Another Record Year of Onshore Bond Defaults

The video discusses China's onshore defaults and their impact on the market, suggesting that the low default rates are not systemic. It explores investment strategies in Chinese bond markets, emphasizing the importance of understanding submarkets and potential arbitrage opportunities. The role of the PBOC and its policy actions are also examined, highlighting their influence on bond market attractiveness and investment strategies.

What factors contribute to the perception of systemic risk in the Chinese bond market?

What are the current default rates in China compared to other parts of the world?

How do the onshore AAA and AA plus credit spreads reflect the market's interpretation of defaults?

How can blending different asset classes in China bonds create a stable return profile?

What is the significance of the PBOC's policy rates on the bond markets?