Chinese corporate bonds fell 1.5% in August, the most since 2008, reports Shanghai Daily. Here’s what the damage looks like:
- Bonds issues by China’s 2nd biggest real estate developer, Everglade Real Estate Group Ltd saw sales drop the most in a year. Yields on 13% notes due in January 2015 climbed 317 basis points (3.17%) to 14.92%.
- China National Offshore Oil Corporation’s 4.25 percent bonds due January 2021 rose last month, pushing their yield down 35 basis points to 3.85 percent.
- The Industrial and Commercial Bank of China’s 5.125 percent debt due November 2020 fell, with the yield on the securities climbing 10 basis points to 5.17 percent.
At the same time (August), Chinese sovereign debt insurance rose as well, 5 year CDS climbed 21 basis points to 108 — the biggest jump since 2009. In New York on September 2nd, they reached 115 basis points. Now the “bank bailout” talk has really started in earnest- it would be the third bailout in less than two decades. Premier Wen Jiabao has recently announced that cooling the country’s economy was the top priority, so companies shouldn’t dream of getting any help with cash from them.