| | SEPTEMBER 20239IN FOCUSThe prestigious Colliers, a leading provider of varied professional services and investment management, has selected Badal Yagnik as the country's new CEO. Yagnik will be based in Gurgaon and work closely with Sankey Prasad, chairman and managing director of Colliers India, to advance the company's growth and profitability."As one of the most well-known industry leaders in the real estate sector in India, Yagnik has accelerated the success of his clients to deliver some of the most successful real estate projects of impeccable quality. We are excited to see him put his skills and experience to use, guiding our rapidly growing India business into its next phase,"John Kenny, Colliers' chief executive officer, Asia Pacific, said.Yagnik is credited with building strong international teams and developing some of India's most successful companies. He has been creating effective end-to-end real estate plans for significant corporate occupiers and developers for almost three decades.Including Cushman & Wakefield and JLl at the senior level, Yagnik has represented several enterprises and professional service firms at local, regional, national, and worldwide levels. Yagnik has also successfully completed some of the most challenging and significant transactions in the sector.Sankey Prasad, Chairman & Managing Director, India, added: "I welcome Badal to the Colliers team and look forward to collaborating with him to drive exceptional results for our clients and people. I am confident that Badal will drive stellar growth for the organization with his exceptional capabilities. He has a strong track record leading teams to deliver high value and supporting clients in achieving their business goals. With cutting-edge market expertise and remarkable strategic proficiencies, he will undoubtedly lead the industry into the future". The promise of a "comprehensive" package from China to address local debt issues has prompted a rush into bonds issued by local government financing vehicles (LGFV), as investors perceive an implicit state guarantee for these provincial firms. Yields on LGFV bonds, which account for half of China's corporate bond market, have fallen to their lowest levels this year, despite the fact that most of them are exposed to a debt crisis in the property sector.Spreads on one-year AA-rated bonds over comparable government bonds have dropped from 353 basis points (bps) at the start of the year to around 173 bps, the smallest gap since late 2020, according to data from Chinabond, a platform part of the China Central Depository and Clearing.Despite growing signs of fiscal stress for local governments, whose primary sources of income are infrastructure and land sales, both of which are sputtering, the narrowing of spreads is more pronounced in lower grade LGFV bonds.The $9 trillion debt pile of LGFVs, which includes loans, bonds, and shadow credits, is seen as a growing source of systemic risk in China's financial system, particularly with the economy in such poor shape.However, investor confidence in the country's roughly $1.9 trillion in LGFV bonds returned following China's July Politburo meeting, during which top policymakers expressed a desire to develop a comprehensive scheme to address local debt risks. COLLIERS HIRES BADAL YAGNIK AS NEW INDIA CEOCHINESE INVESTORS FLOCK TO INVEST IN MUNICIPAL BONDS
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