Bloomberg

This Week in China: World’s Busiest Market for Risky Bank Debt Is Calm

Chinese banks have sold $42bn worth of risky bank debt, the riskiest type of bank debt, to onshore investors. The world's busiest market for these securities is drawing little scrutiny, despite investors' concerns over the future of the debt.

Chinese banks have sold around $42bn worth of additional Tier 1 bonds in the past 18 months, the riskiest type of bank debt, to onshore investors, reducing exposure to dollar debt and refinancing at cheaper rates.
The world's busiest market for these securities is drawing little scrutiny, despite investors' concerns over the future of the debt after Credit Suisse's AT1 notes wiped out.
Chinese markets have been shielded from global volatility as companies fund themselves by selling equity and debt onshore, where the government has more control.
State dominance aligns regulators, shareholders and banks, increasing the likelihood of government intervention to fix problems early.
Citigroup analysts wrote that it would take a sovereign debt crisis to trigger a complete writedown of AT1 notes in emerging markets like China.

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Factbox: Turkey earthquake and some of the worst natural disasters of this century

Two massive earthquakes on Monday have devastated cities and towns across Turkey and Syria, with death toll of over 16,000. This is one of the worst natural disasters this century, alongside the 2004 Sumatran Tsunami, 2010 Haiti earthquake and 2008 Cyclone Nargis.

Take Five: Strap in for no landing

A raft of U.S. data and European inflation numbers will give guidance on how the world's top central banks will navigate the way ahead, including the hotly debated "no landing" scenario. Reports on U.S. durable goods orders, home prices, manufacturing and consumer confidence threaten to cement expec

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