China Property Bonds Are ‘No Longer Analyzable’ as Crisis Grows
- Prices reflect black box market beyond analysis: Loomis’ Feng
- Contagion has spread to firms that had been seen as safer
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The crisis in Chinese property dollar bonds has become so extreme that an analyst who’s been covering the market since its inception in 2005 says meaningful analysis is no longer possible.
“The proven investment approach is that it won’t go wrong being negative or more negative ahead of the market,” said Zhi Wei Feng, a senior analyst at Loomis Sayles Investments Asia Pte, who was working on credit research at Barclays Capital in 2005, when the first-ever Chinese real estate firm dollar bond was issued.