22 point spike in Chinese credit default swaps

China’s bond investors are raking it in as an equity rout scatters cash into fixed-income securities. But concerns are rising that spreading defaults and a sliding yuan will spark a selloff. “2016 is a year when we will see systemic risks emerge in China’s credit market,” said Ji Weijie, credit analyst at China Securities Co. "There may be a chain reaction as more companies are likely to fail in a slowing economy and related firms could go down too." The 18 percent tumble in China’s benchmark stock gauge this year has so far buoyed bonds, cutting yield premiums on local securities to record lows and on dollar debentures from the nation to the least in eight years. A reversal may be coming as the yuan’s slide spurs capital outflows that have forced the central bank to inject liquidity to hold down borrowing costs, a task it can’t manage indefinitely, according to First State Cinda Fund Management Co. For the full article: (VIEW LINK)