The It's Tuesday, May 26, 2020, just after market close here in New York.

This is the Real Vision Daily Briefing.

I'm going to be joined shortly by managing editor Ed Harrison, but first, Jack Farley with the latest market news.

Thanks, Ash.

I know you and Ed have a lot of thoughts about China, the relationship between China

and the United States, and the possibility of a new cold war.

I want to zoom in on China by looking at a historic event within a niche asset class there,

convertible bonds. There's a lot of action going on.

A hybrid fixed income security that gives investors the option to turn debt into shares if they reach a certain level.

Convertible bonds have been on an unprecedented boom in China.

Chinese companies have rushed in to secure the cheap financing.

In 2019, Chinese borrowers raised $55 billion in convertible bonds,

the same amount that was raised in 2017 and 2018 combined.

Investors zeal for Chinese converts only heightened as COVID-19 spread in Wu-Hahn and throughout China.

The bull market accelerated and issuance has

showed no sign of slowing. On May 13th issuance for the month had already swelled to

1.68 billion dollars the first time that monthly issuance for Chinese converts had passed $1 billion since

September of last year. Now, there are many possible reasons for this. One is that investors

moved to de-risk their holding so they sold

their stocks off in January and move to what seemed like safer ground. In addition

convertible bonds become especially attractive in times of volatility because as a hybrid asset class they seem to give investors the best of both worlds offering the safety of fixed income as well as a taste of the equity capital if the stock hits a certain level or a

premium above par. And then on the supply side companies had lowered that

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