and one thing they can do to win it is to flood the markets with cheap products
The ongoing U.S.-China trade tensions are “significantly hurting” the Indonesian textile market, and Duniatex’s liquidity was affected by plummeting prices due to the oversupply of imported cheap fabric from China, S&P also said. The ratings agency pointed to ripple effects from the U.S.-China trade war in part for Duniatex’s worsened liquidity.
and also as another domino to fall in the credit implosion:
On Monday, S&P slashed its rating of dollar bonds sold by a subsidiary of Indonesia's Duniatex Group (also known as Delta Merlin Dunia Textile) by six notches to CCC-, citing "significant liquidity challenges" after another group company missed a payment on a syndicated dollar loan that had matured on July 10.
This is also pretty hilarious, in terms of those left holding the bag:
An email sent from a Duniatex executive to an investor that was seen by Bloomberg News, said “We will try to ring fenced DMDT as the bond issuer” from a missed payment on a loan.
“We will update later, please dont call or email at this time, as my Inbox flooded with emails,” the email also said.
So with the issuer refusing to speak to anyone, attention turns to the underwriters: BNP Paribas and Standard Chartered arranged the bond sold in March. A spokeswoman for Standard Chartered declined to comment, while a spokesman for BNP Paribas also declined to comment when Bloomberg asked them how they could underwrite a bond that is set to default without having made a single payment.
Expect to see more disaster in the shit credit markets created by central banks all over the world.
