deleveraging

  1. China Banks Brace for June Cash Squeeze as Fund Costs Jump

    China Banks Brace for June Cash Squeeze as Fund Costs Jump
    China’s deleveraging dilemma -- how to squeeze excess liquidity out of the financial system without spurring a full-blown cash crunch -- is facing its toughest test. June is traditionally a tight time for banks because of regulatory checks, and this year, lenders are grappling with an official campaign to reduce the level of borrowing as well. Wholesale funding costs and money-market...
  2. China's Rating Cut Exposes Companies Hooked on Dollar Borrowing

    China's Rating Cut Exposes Companies Hooked on Dollar Borrowing
    China’s first credit rating downgrade by Moody’s Investors Service since 1989 couldn’t have come at a worse time for the nation’s companies, which have never been more reliant on the overseas bond market for funding. While Chinese companies’ foreign-currency debt is only a fraction of the $9 trillion local bond market, China Inc. is on pace for record dollar bond sales...
  3. China's Deleveraging Puts the Yuan Closer to a Free Float

    China's Deleveraging Puts the Yuan Closer to a Free Float
    Liberalizing capital markets is generally not achieved without liberalizing the exchange rate mechanism. China's financial markets are fascinating to watch these days. Efforts by officials to decrease the nation’s enormous debt pile without destabilizing domestic markets are having profound consequences, most visibly in the bond market, where the yields on short-term debt have risen above those on longer maturities for...

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