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The China Expert's View on the Credit Market
We're seeing a lot of reverberations in the credit market. Yet we haven't seen the Chinese yuan re-value as many macro investors had anticipated. What's happening with the reminemy is that corporates in China are over levered and they're starting to sell off international assets. As you repatriate those funds, it puts a bid on your currency. That bid obviously is hurting the economy there and then globally it's exporting deflation. Eventually, China could either go the route of Japan and watch the, I mean, the yen appreciated for 20-something years until Abe stepped in and said no, this is dumb.