High-rise apartment buildings at China Evergrande Group’s under-construction Riverside Palace development in Taicang, Jiangsu province, China, on Friday, Sept. 24, 2021.
Qilai Shen | Bloomberg | Getty Images
Asian high-yield bonds have been a hot favorite among institutional investors for the last few years.
Also known as junk bonds, they are non-investment grade debt securities that carry bigger default risks — and therefore, higher interest rates to compensate for them.
One recent high-profile example was the debt crisis at China’s Evergrande. Weighed under more than $300 billion of liabilities, the world’s most indebted property developer is teetering on the brink of collapse. Fears of…