Yu Lei, an asset manager whose sprawling connections in China facilitated billions of dollars in bond sales and earned him a “bond prince” nickname, died by suicide earlier this month, according to business media outlet Caixin. His passing is a timely reminder of how murky the nation’s municipal financing can be, just as foreign investors step up purchases of domestic credit again.

Before he died, the low-key 40-year-old had been detained and investigated for helping local government financing vehicles raise money through so-called structured bond sales, Caixin reported. Under this scheme, an issuer would buy wealth management products offered by funds controlled by Yu. These had the mandate to invest in LGFV bonds and conveniently purchased their client’s new note. Their products were also sold through futures companies, including Central China Futures Co. where Yu worked, to retail investors. Often, the LGFV would use its new bond holdings as collateral for margin loans.

QOSHE - Death of a Bond Prince Sheds Light On China’s Shadowy Financing - Shuli Ren
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Death of a Bond Prince Sheds Light On China’s Shadowy Financing

12 1
28.02.2024

Yu Lei, an asset manager whose sprawling connections in China facilitated billions of dollars in bond sales and earned him a “bond prince” nickname, died by suicide earlier this month, according to business media outlet Caixin. His passing is........

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