China May Have $5.8T in Hidden Debt with ‘Titanic’ Risks

Re:China May Have $5.8T in Hidden Debt with ‘Titanic’ Risks by onlyrealcuzzo on Tuesday October 16, 2018 @06:54PM (#18233992)

Also, you can't magically liquidate Treasuries to dollars. China would have to find a buyer for it's $1T in bonds. And I don't know who has that kind of money. They wouldn't get full price.

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Re:China May Have $5.8T in Hidden Debt with ‘Titanic’ Risks by airstrike on Tuesday October 16, 2018 @07:13PM (#18234097)

They don't need to sell at once, and if rates continue to rise there will be increasing appetite for yields

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Re:China May Have $5.8T in Hidden Debt with ‘Titanic’ Risks by panarky on Tuesday October 16, 2018 @07:20PM (#18234149)

When interest rates rise, bond prices fall.

So when you see interest rates rising, that means there is more selling pressure than buying pressure.

Just like anything else, it is harder to sell bonds and get the price you want when bond prices are falling (and interest rates rising).

It's easier to sell and get a good price when bond prices are rising (and interest rates are falling).

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Re:China May Have $5.8T in Hidden Debt with ‘Titanic’ Risks by A2017U1 on Tuesday October 16, 2018 @08:14PM (#18234433)

In general demand is higher for bonds as their prices fall. They are both cheaper and paying better rates.

This is econ 101.

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Re:China May Have $5.8T in Hidden Debt with ‘Titanic’ Risks by wahern on Wednesday October 17, 2018 @04:25AM (#18237192)

The rates are better for newly issued bonds. Existing bonds become devalued. The point (IIUC) is that unwinding is a tricky proposition and dependent on the mix of maturities.

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