China cost of property bonds rising 40% in 15 months.
A recent Bloomberg article suggests we might be seeing some defaults from Chinese property developers as the cost of refinancing continues to rise.
The chart above indicates a close to 40% increase in the cost of borrowing (measured by coupon rates on property bonds) over the past 5 quarters, so call it the past 15 months.
Although Beijing could step in at any time if this was to get out of control, it will be worth keeping one eye on.
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