Ever since Chinese regulators lowered the red-tape barriers to green bonds, there’s been an outbreak of issuances. It might be good for treasury working capital, but is it healthy?
With low interest rates and easy debt, corporate treasurers have never had it so good. The result is lower covenant quality - it might be fine now, but what are the repercussions?
Tewoo's debt restructuring breaks the market's assumption that offshore creditors will get full repayment in debt workouts. Investors in China's SOEs need to brace for more defaults