Hayman Capital’s Kyle Bass on Tuesday said the “real problem” in China is its banking sector as bad debts continue to accelerate. “Loans past due 90 days grew 167% in the first half,” said Bass in an interview with CNBC, predicting that China is two to three quarters away from a peak in non-performing loans. That will put significant pressure on the authorities to raise funds to recapitalize the banks. Other emerging-market economies, including Malaysia, are facing similar issues in their own banking systems. Bass also said his strength is spotting anomalies and his fund has started to watch countries with trade deficits that are poised to devalue their currencies. Meanwhile, he vowed to continue his legal challenges against drug patents that he considers weak despite a couple of recent setbacks.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News