China’s Debt Powder Keg; Canada Faces Mortgage Test

China’s local governments are struggling to repay trillions of dollars in infrastructure debt, just as more property developers tip into distress, according to Bloomberg News’ Wei Zhou. A Chinese municipal default would send shock waves through global markets, but Beijing is at pains to avoid the moral hazard of a bailout. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie also asks Bloomberg Intelligence analyst Himanshu Bakshi about the risk to Canadian banks of a spike in mortgage defaults. The main financial institutions can withstand significant real estate stress, though their bonds may come under pressure.See omnystudio.com/listener for privacy information.