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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CHINA
- Last year, the Chinese credit market was under intense pressure, mainly driven by the collapse of property developer Evergrande, which spurred contagion risks for the entire property sector.
- Hence, the elevated uncertainty in the property market led to a significant divergence between US and China HY indexes.
- This year, the deterioration in the Russia/Ukraine conflict has generated a shock in all asset classes and the market uncertainty has led to a significant rise in volatility in equities, credit and FX markets.
- The Bloomberg US Corporate High Yield Bond Index (LF98TRUU Index) is down over 5% since its record high reached in December.
- Interestingly, the shock has continued to dramatically weigh on China credit market, with the HY index (H29381US Index) plunging to its lowest level since Q4 2012.
- According to Bloomberg, China HY USD bond yield surged above 25% this week (record high).
- As a reminder, China property represents nearly 50% of the index, which explains the significant divergence between US and China HY indexes in the past year (chart below).
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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