Corporate debt investors face the prospect of rising defaults from China and the US junk bond market, according to Standard & Poor’s, a twin threat representing an inflection point in the current credit cycle.
China ranks as the largest corporate debt market and continues to grow, with its debt pile representing 160 per cent of its economy.
S&P estimates that companies will need to sell $57tn of debt by 2019, with 40 per cent of that from China and 21 per cent from the US.
This week Beijing reported that its economy had grown by 7 per cent for the second quarter, in line with the official target. However, the stock market plunge over the past month has sparked concerns about companies and their rising debt levels.
您已阅读25%（720字），剩余75%（2136字）包含更多重要信息，订阅以继续探索完整内容，并享受更多专属服务。