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How “Ghost Collateral” And “Yin-Yang” Property Deals Will Collapse China’s Credit Bubble

How “Ghost Collateral” And “Yin-Yang” Property Deals Will Collapse China’s Credit Bubble One lesson from the 2007-08 crisis was that the vast majority of financial market participants, never mind the general public, were unfamiliar with subprime mortgages until the crisis was underway. Even now, we doubt many have much understanding of repo, the divergence between […]

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Chinese “Ghost Collateral” Scam Leads To Market “Shockwaves”, Huge Loss For Giant Commodity Trader

Chinese “Ghost Collateral” Scam Leads To Market “Shockwaves”, Huge Loss For Giant Commodity Trader Back in 2014, a scandal erupted when media reports confirmed what many had previously speculated about China’s banking system: namely that much of China’s staggering loan issuance had been built (literally) upon air and that trillions in loan collateral had been […]

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China’s “Ghost Collateral” Arrives In Canada, “Heralding A Crisis”

China’s “Ghost Collateral” Arrives In Canada, “Heralding A Crisis” Two weeks ago, a key China-linked concern that made headlines back in 2013 and 2014 reemerged after an extensive analysis by Reuters reporter Engen Tham found that China’s “ghost collateral” problem, or collateral that was either rehypothecated between two or more loans, or simply did not […]

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