China's New 'Bad Loan' Managers: Savvy Saviors or Riskier than Ever?
on August 9, 2016
As China's economy slows and defaults rise, 'bad loan' managers say they spot an opportunity to pick up bargains, because lenders are eager to shed toxic debt that might otherwise poison the broader financial system. Yet questions remain about whether these bad loan managers—especially smaller private players—are savvy investors in distressed assets or a risky backdoor for lenders to cleanse their balance sheets at a high cost.