bondholders

China turns tables and taxes what was once free, bondholders not amused

China shocked investors by announcing a new 6% tax on interest earned from government and bank bonds starting August 8, 2025. These bonds were tax free for decades, making them popular safe bets. Now, new bonds will face this tax while old ones keep their exemption until they mature. https://news.bloomberglaw.com/daily-tax-report-international/china-to-tax-bond-interest-income-after-decades-of-exemption-1 The tax means the government …

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MicroStrategy exploits Bitcoin optimism to drive volatility, risking shareholders’ and bondholders’ wealth.

MSTR’s issuance relies on NAV premium and implied volatility, which would flatten without them. TLDR: MSTR sells shares at 2.3x NAV, making the sale accretive by buying BTC at a premium. Convertible bonds sold with 65% delta offer 1.5 BTC of buying power from the delta. Convertibles priced at 100 implied volatility, 13% premium over …

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China is in default on a trillion dollars in debt to US bondholders. Will the US force repayment?

Every country should pay its sovereign debt. Default, we are told, is not an option. But has anyone told China? The United States pays interest on approximately $850 billion in debt held by the People’s Republic of China. China, however, is currently in default on its sovereign debt held by American bondholders. Successive U.S. administrations …

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China is stiffing US bondholders to the tune of $1 trillion

via thehill: Every country should pay its sovereign debt. Default, we are told, is not an option. But has anyone told China? The United States pays interest on approximately $850 billion in debt held by the People’s Republic of China. China, however, is currently in default on its sovereign debt held by American bondholders. Successive …

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