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Goldman Sachs raises China property HY 2022 default rate to 19% -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – The Goldman Sachs logo can be seen in New York City on the New York Stock Exchange’s trading floor. This is New York City (NYSX) November 17, 2021. REUTERS/Andrew Kelly

LONDON, Reuters – Goldman Sachs (NYSE 🙂 stated on Thursday that it expects almost a fifth (or more) of Chinese property companies with lower ratings to default in the current year. However, it may be even higher in a worse scenario.

U.S. bank for investment raised its default rate base case to 11% from 11% and the downside case to 31.6%, from 25.4%.

Kenneth Ho sent a Wednesday note to his clients, “Whilst payment defaults have been rare in the last few weeks,”

“The next months will be marked by heavy bond maturities in China Property HY. There may also be more maturity extensions/bond exchangings and payment defaults.”

Goldman Sachs believes that the highest yielding bonds firms are expected to have $3.6 Billion worth of maturing bonds by the end-of the month. The March bond market was $3.3 billion, with another $3.7 billion coming in April.

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