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The ‘marginal buyers’ in credit are neither marginal nor buyers

Matt King from Citi writes Fund managers may be the main ones losing out as central banks retreat, amid the brief bursts of market volatility and losses in investment-grade bonds. The world’s “marginal buyers” of bonds are retreating and this matters because their presence has been providing support (direct or indirect) to riskier markets such as equities, credit and real estate. King says we can expect non-sovereign markets “to remain soft until the taps are turned back on.”

King’s analysis of the relationship between China’s credit and global real-estate costs is interesting