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Showing posts from October, 2013

Kyle Bass on China: Brakes on Credit Expansion by Banks and Shadow Banks Will Slow Economy

Q&A With Kyle Bass

By Robert Stowe England
October 24, 2013

Below is the transcript of a recent interview with J. Kyle Bass, founder and principal of Hayman Capital Management in Dallas, and Richard Howard, managing director and global strategist with Hayman.

Q: In you letter to investors in June, you talked about the rapid growth of credit in China and how that was driving the economy and how they couldn’t go on forever increasing loans – and a lot of that is in the shadow banking system. Is that really reflected in official numbers of bank lending – that is, the growth of lending in the shadow banking system?

Richard Howard. I think the growth in Total Social Financing [in the central government’s official data] comes the closest to capturing all that shadow banking activity

Kyle Bass: Which is a number they do release.

Q: You cite in your letter that Total Social Financing is now growing at nearly 22 percent a year as of April – and that the total size of Chinese credit system…

Bostanjiev: Now Is Good Time To Invest in Russia

CNBC London host interviews Atanas Bostanjiev, U.K. and international CEO of VTB Capital
October 16, 2013

Bostanjiev says that due to the situation in the U.S., now is a good entry point for the "emerging markets investor" and says the Russian "story is still very constructive".