760 Billion Yuan in Coal Debts Come Due

Hexun: 煤炭金属矿业将到期7600亿债权 违约或集中爆发
Bloomberg data show that in coal and metals and mining industries with excess production capacity of these two companies this year 2-4 quarter cumulative maturity scale over 760 billion yuan, recording the highest increase of 34% over last year, compared with same period in 2014 more than doubled. Maturity bonds in the entire bond market this year will also climb to a high, from the beginning of this quarter will face a maximum high for three consecutive quarters, the total will reach 4.12 trillion yuan, up 23% over last year.

Haitong Securities ( 600837 , stock it ) has said Jiang Chao, frequent credit default push up credit spreads, corporate financing costs easy or hard to drop. Increasing the risk of default by the new companies will push the cost of the old, or cause disruption to refinance, and may even form a "risk of default increases - Refinancing blocked - economic downturn - further increasing the risk of default," the vicious circle.

He also said the analysis, low-rated bonds due for repayment amount start to rise sharply from the fourth quarter of 2015, but it is also since then, a series of events of default Shanshui Cement continue to impact the market nerves. The low-rated bonds due amount is still in an upward trend, and the third quarter of 2016 reached a peak . With the large capacity due to the propulsion and low-rated bonds are expected to emerge more events of default, default will show normalized.

Various types of bond holding financial institutions recently focused on dumping bonds as soon as possible to avoid debt default, to avoid "stepping on a mine."

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