Triada Capital: Added Back China Bonds on Dips

The video discusses China's deleveraging policy and its impact on credit markets, highlighting the attractiveness of high yield Asia credit. It explores the implications of government support and credit differentiation, emphasizing the need for investors to adopt a more analytical approach. The discussion also covers investment strategies, focusing on high yield segments and opportunities in the property market.

What has been the effect of China's deleveraging policy on credit markets?

• Decreased liquidity in refinancing channels

• Lower yields on average

• Higher yields and slowed onshore issuances

• Increased exuberance in credit markets

How has the default of China Fortune Land affected high yield spreads?

• It caused spreads to narrow

• It had no impact on spreads

• It caused spreads to widen

• It led to a decrease in high yield premiums

What is a key challenge for investment grade bonds in Asia?

• Low credit differentiation

• Excessive liquidity in the market

• High attractiveness compared to high yield

• Lack of implicit government support

What approach is suggested for evaluating investment grade bonds?

• Focusing only on onshore markets

• Using a bottoms-up approach

• Relying solely on government support

• Ignoring credit differentiation

How has the Huarong situation influenced investment strategies?

• More opportunities in high yield segments

• Shift towards onshore investments only

• Increased focus on investment grade bonds

• Reduced interest in property segments

What has been the performance of the property segment in China this year?

• Underperformed expectations

• Met the three red lines policy

• Failed to reduce debt

• Struggled with pre-sales

What strategy has been adopted in response to idiosyncratic negative headlines?

• Avoiding all high yield bonds

• Focusing on sentiment-driven opportunities

• Investing only in government-backed bonds

• Reducing exposure to Southeast Asia credits