China Bond Selloff Spreads to Higher-Quality Dollar Bonds

China Bond Selloff Spreads to Higher-Quality Dollar Bonds

Assessment

Interactive Video

Business

University

Hard

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Quizizz Content

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The video discusses the spread of a sell-off in the Chinese bond market, initially triggered by high yields on Chinese dollar junk bonds. This sell-off is affecting higher-rated property developers and the broader market for Chinese investment-grade dollar bonds. The focus then shifts to Evergrande, which faces a significant coupon payment deadline to avoid default, potentially leading to restructuring. Other Chinese firms like Kaiser and Jango are also under scrutiny due to their substantial offshore dollar debt and default risks.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the initial trigger for the market sell-off in China?

Trade tensions with Europe

Increase in oil prices

Low interest rates in the US

High yields on Chinese dollar junk bonds

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which two property developers are mentioned as being affected by the sell-off?

Alibaba and Tencent

Jango and Kaiser

Country Bar Garden and Vancouver

Evergrande and Kaiser

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What percentage of the Chinese offshore debt market is made up of investment-grade quality debt?

50%

70%

30%

90%

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the potential consequence if Evergrande misses its coupon payment?

It will lead to a stock market crash

It could be the first major public bond default by Evergrande

It will result in a government bailout

It will cause a rise in property prices

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which firm is noted for having a significant amount of offshore dollar debt, more than half of Evergrande's?

Kaiser

Jango

Country Bar Garden

Vancouver