RT Journal Article
SR Electronic
T1 Investing in China’s High-Yield Debt Markets: <em>A Proposed Credit Analysis Framework</em>
JF The Journal of Portfolio Management
FD Institutional Investor Journals
SP 136
OP 147
DO 10.3905/jpm.2015.41.5.136
VO 41
IS 5
A1 Jie Liu
A1 Frank J. Fabozzi
YR 2015
UL https://pm-research.com/content/41/5/136.abstract
AB After describing the key investment characteristics of the Chinese high-yield market, the authors propose a credit analysis framework for investors in China’s high-yield debt markets. The framework consists of five credit metrics that in the view of the authors are among the most important. The authors focus s on the right approach for analyzing these well-known metrics, which are often either overlooked or misinterpreted. The investment philosophy put forth by the authors throughout the articleemphasizes avoiding permanent capital loss. A case study of the bankruptcy of China’s Sino-Forest Corporation is provided to illustrate the credit analysis process in further detail.TOPICS: Emerging, credit risk management