EGRNF - China's property market bust echoes warning for U.S. high-yield bonds report says

In the wake of China Evergrande's (OTCPK:EGRNF) (OTCPK:EGRNY) liquidity crisis and broader distress felt by property developers in China, pricing in the Asia high-yield market has "detached from other credit markets to a degree rarely seen," Guggenheim Global Chief Investment Officer Scott Minerd writes in a recent report. The ICE BofA B & Lower Rated Asia Emerging Markets Corporate Plus Index soars to about 30% so far in 2021 from as low as 7.5% at the onset of the COVID-19 pandemic. This is a large gap from the other high-yield credit markets, such as the ICE BofA U.S. Emerging Markets External Debt Sovereign & Corporate Plus Index and the ICE BofA U.S. High Yield Index, which stand at levels of no more than 5%. "The absence of a positive correlation implies that markets expect spillover effects from Evergrande will be minimal," Minerd says. Other high-yield credit markets that are holding firm

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China's property market bust echoes warning for U.S. high-yield bonds, report says