KKR, CLSA execs tip China NPL returns to disappoint

Investors have been pouring more money into China’s bad loan market as the supply of these assets continues to rise, but some experienced debt investors are less bullish. Senior executives at alternative fund managers KKR and CLSA Capital Partners argue that mainland Chinese non-performing loans are likely to fall short of the returns being sought. Investors, including US firms Oaktree Capital and Lone Star Funds, poured $1.5 billion into Chinese NPLs in the 18 months to Septemb…