- See more at: http://blogtimenow.com/blogging/automatically-redirect-blogger-blog-another-blog-website/#sthash.CpFtWfic.dpuf Traders digest: UPDATE ON THE CHINA 31st JANUARY DEFAULT STORY.

Thursday, 23 January 2014


Talk doing the rounds:

  • The two big institutions behind the dodgy issue are going to take responsibility and bailout 1/4 of the payments each. Meaning that at least 50% will be covered.
  • The regional government in Shanxi province will bailout the other 50%. 

 The product was a 498mm USD issue which was a high yielder designed to support  coal mining company which collapsed when the management was arrested.
Investors are complaining that their capital was 100%. (Hard not to laugh at this one :-D)
I had said before that it was unlikely the central government would let it default and that seems to be them working in the shadows, but this is a symptom of an ailing credit system and its likely we hear about another default very soon. I am not going to hold my breath though.

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