Offshore investors in Asian corporate bonds have always had a masochistic streak. As they are typically lending to the holding company, rather than the operating company – where the assets are – they have never been in any doubt they would come off much worse than onshore creditors, should push come to shove.

And they would be prepared for pretty rough treatment along the way. One landmark case was Asia Pulp & Paper: when it hit the skids eight years ago the Indonesian-controlled firm kept paying interest to local investors while freezing payments to foreign creditors. Free-roaming hedge funds seeking tremendous yields have got used to this uneven treatment, and tried to price it in.

As troubles mount for issuers this time around, the usual inequalities are surfacing. Take Asia Aluminum, the housing-frame maker that entered voluntary liquidation in March: according to liquidator Ferrier Hodgson, bondholders may get 19 cents on the dollar, while Chinese banks will probably recoup all that they are owed.