Chinese Bond Markets Falter

Chinese property bonds faltered once again on Monday as it became clear that Evergrande ($EGRNF@China) would miss a third round of bond payments in the last 3 weeks. Additionally, competitor Modern Land seems ready to delay payment deadlines, hoping to push back payments “to avoid any potential payment default.” As a result, there’s a 1200 basis point difference between the JACI China high-yield index and an index tracking investment grade AA-rated Chinese market or “onshore bonds.”