PIMCO Says 'Very Excited' About China Bonds Joining Bloomberg Barclays Index

The video discusses the current state of Asia bonds, focusing on China's credit data and its implications for the high yield market. It highlights the performance of the Asia high yield index and compares it to the US market. The discussion also covers the increasing trend of defaults in China and the impact of credit concerns on market stability. Policy shifts towards favoring private sector lending are examined, along with the challenges of transitioning loans from state-owned enterprises to private entities. Finally, the inclusion of Chinese bonds in global indices is explored, emphasizing the potential for growth in the bond market.

What changes are expected in the loan distribution to the private sector?

What potential impact will the inclusion of Chinese bonds in indices have on the market?