Investors have been on tenterhooks over whether China Evergrande would default on $83m in dollar bond interest payments this week. That may come down to semantic and legal arguments over what “default” means. The bigger issue is whether a two-tier China bond market is emerging, with domestic currency investors advantaged over foreign currency bondholders.
Evergrande either makes their coupon payment on their us dollar denominated bond or defaults. it is worth noting that the covenants on that bond state that there is a 30-day grace period before as i mentioned in a recent video it’s reasonable to expect that payment to not come through today just because it makes sense for
A cash strapped company like evergrande to hold on to the cash government in beijing make. odds are they the wall street journal is reporting that the chinese authorities have told local officials to prepare for the demise of evergrande. “getting ready for the possible storm” and said the government told
Them they should only step in at the last minute to prevent spillover effects. this implies that the central government may still have some appetite for a partial bailout, despite the global implications. but it mostly the local governments have been ordered to assemble accountants and legal experts to examine
The finances of evergrande in their respective regions. they have been asked to prepare to take over building projects and to monitor public anger and “mass incidents” – which basically means protests. government officials have talked about the importance of migrant workers employed on the company resolved payment on a
Local bond this announcement — alongside the injection of $17bn into the banking system by the central bank — lifted evergrande shares 17 percent and boosted chinas largest property developer we are still in the dark about what will bloomberg reported this morning that authorities in beijing told the company
Not to default on evergrande still has a $47m dollar-bond interest payment coming up next week and around $600m due by the end of the year. in the first quarter of next year, principal repayments of about $3.5bn foreign investors should not really be too there is just going to be more political will to
Pay the small wealth management investors in china if international investors are pushed in queues for payment, they will quickly discount all chinese corporate debt accordingly. right now, fairly in the event of a default – the debt is trading at the level of expected recovery. only around $20bn having been issued
Offshore. chinese developers is much larger and trades right in the event of foreign investors getting worse treatment to domestic chinese investors, you could expect other chinese bonds to fall in value to talk to you later, bye
Transcribed from video
Evergrande Default Day By Patrick BoyleliveBroadcastDetails{isLiveNowfalsestartTimestamp2021-09-23T180819+0000endTimestamp2021-09-23T181428+0000}