China’s leverage crackdown is worsening the outlook for corporate defaults - BBG

Bloomberg carried a story earlier today on China’s leverage crackdown, explaining its negative impact on the corporates.

Key Points:

China's leverage crackdown is forcing local companies to confront their addiction to short-term bond sales that they use to roll over debt, yields surging

Chinese non-banking firms sold 131 billion yuan ($19.3 billion) of bonds with a maturity of one year or less in May, the least since January 2014 and less than half of the same month last year

About 87 percent of the short note sales last month will be used for refinancing, according to Bloomberg data