Evergrande Default Day

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

See also  Why America's next housing crisis threatens Trump's re-election | FT

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}

Scroll to top