Chinese property junk debt has been one of the most profitable and popular corporate bond trades of the past decade, built on the back of the nation’s economic growth engine and introduced to the world via Hong Kong. Since the first bonds emerged in 1997, institutions like Credit Suisse Group AG and Goldman Sachs Group Inc. have brought international money flooding into an asset class where rewards were formidable and defaults extremely rare. In an era of negative-yielding assets, these bonds became a critical way for many global fixed-income investors to bolster returns. Even major pension funds and insurers bought in. Now, the $203 billion market—which once yielded several deals a week and padded portfolios across the world from Pimco to UBS—is all but dead. And offshore investors are swallowing almost all of the losses. https://www.bloomberg.com/news/features/2022-08-09/china-real-estate-market-junk-bond-trades-implode-as-mortgage-boycotts-roll-on?srnd=premium