HALISTER1: Goldman Says Now Good Time to Cut Exposure to China Builder Debt

Goldman Says Now Good Time to Cut Exposure to China Builder Debt

(Bloomberg) -- Investors should reduce exposure in Chinese investment-grade and high-yield property bonds with spreads at their tightest levels ever, Kenneth Ho and Charles Himmelberg, analysts at Goldman Sachs, wrote in an Oct. 28 note.
  • Goldman expects more offshore supply of China property bonds, which could weaken technicals: note
  • The regulatory tightening on the property sector is showing initial signs of effectiveness: note
  • Past experience suggests spreads on China property bonds widen before actual physical property price declines: note
  • NOTE: Shanghai Bourse Said to Tighten Rules on Real Estate Bond Sales
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Charles Himmelberg (Goldman Sachs Group Inc/The)
Kenneth Ho (Goldman Sachs Group Inc/The)

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