China Defaults Threaten Eerily Calm $12 Trillion Bond Market

The video discusses the launch of a project aimed at analyzing China's corporate bond market amidst Beijing's efforts to manage financial risks. It highlights the shift away from the 'too big to fail' strategy, the rise in defaults, and the use of various metrics to assess market stress and resilience. The discussion also covers Beijing's broader strategy to curb moral hazard and introduce market discipline.

What is the main reason Beijing is clamping down on market risks?

• To promote technological advancements

• To address challenges faced by investors

• To reduce the number of new businesses

• To increase foreign investments

What does the tracker aim to highlight in China's corporate bond market?

• Foreign investments

• The most profitable companies

• Riskier corners of the market

• Government-backed bonds

Which metric is NOT used to assess stress in China's credit market?

• Value of defaults

• Historical context comparison

• Yields on junk bonds

• Stock market performance

Why is China allowing defaults to rise at a record pace?

• To increase market volatility

• To attract foreign investors

• To encourage reckless expansion

• To curb moral hazard

What has been a consequence of the explosive growth of China's credit market?

• Increased foreign investment

• Unadulterated access to credit

• Stable economic growth

• Decreased market risks