A combination of a “credit crunch,” regulation, and decreased market confidence has driven a scenario likely to break negative records in the corporate bond market and drive record numbers of defaults this year. “As well as cutting their own holdings, Chinese banks have pulled back from lending to other firms that use the funds to buy bonds, exacerbating the pressure on the market,” according to a Bloomberg article citing research from the Rhodium group.
Source: China to see record number of corporate defaults this year, analysts say | Asia Times
