As the dust settles following the implosion of Chinese real estate credits in the G3 bond market, investors will be watching and waiting how defaults are resolved and when is the best time to re-enter the market. Corporate bond issuance level contracted by 12% in 2021 largely on the back of the meltdown in the high-yield bond market led by real estate developers. Just as in the past five years, offshore investors will be watching closely the resolution of these junk credits.

Overall default rates, both onshore and offshore, remain manageable on a risk-adjusted basis. But caution is the watchword for investors even as opportunities could present themselves as the year progresses. The coming 12 months, therefore, will be about managing plenty of challenges but also capturing a surfeit of opportunities.

The Asset Events+ is pleased to be hosting the 17th Asia Bond Markets Summit, China. Bringing together issuers, investors, policymakers and other stakeholders involved in Asia’s bond markets.