Markets Await Outcome for Opaque Bond Tied to Evergrande

we just kind of you know sit nervously and wait for something from the company right there is no grace period for this particular bond right that's correct like the previous two dollar coupons that were due in the last couple of weeks uh that had a 30-day grace period this particular 260 million dollar bond that is issued by a joint venture whose main owner is hongdae real estate which is the main ever grand domestic real estate unit in china it's these opaque cross guarantees that perhaps are starting to bubble up and show some of the biggest systemic risks that perhaps the market wasn't aware of we do know the bond payment schedule for evergrands bonds but these cross guarantees is what's quite tricky and this maturity was yesterday as you rightfully said which effectively makes the due date today because sunday is a market holiday they may might get about five days grace period if there's considered to be a technical or clerical error but essentially today is the due date and it can be then classified as a default the big question then is what would creditors offshore creditors be able to do will they go offshore and file legal actions they can't do that unless it is officially declared a default but again it is also showing over the last couple of days how authorities are urging banks to you know extend credit and and support to healthy developers not necessarily these heavily indebted ones they are ring fencing not necessarily saving evergrand but it is a slow train wreck as i've i've said before to see how this might play out and today might be that official d word default on this jumbo fortune enterprise issued a note that is matured yesterday

Channel: Bloomberg Markets and Finance

Views: 43,088

Rating: 4.902041 out of 5

Keywords: Bloomberg

Id: hRCiYigpV20

Length: 1min 56sec (116 seconds)

Published: Sun Oct 03 2021

Reddit Comments

[u/bosshax]

Offshore bond holders have basically no remedy.

Good luck taking your greviance to Xi and asking for an order to liquidate some property.

Fun fact, don’t invest in places with a weak court system or where foreign interests have no rights.

[u/gochuuuu]

Yes please

[u/kushberrrymuffins]

Does their market open tn?

[u/sammyg47]

Would love to know who in the west is holding the notes on these bonds?

[u/Cataclysmic98]

Good thing I have all my money tied up in GME!

[u/kendie2]

currently suspended trading. That's all folks!

[u/RL_bebisher]

What happened to Friday and the +5 day extension? By no means am I complaining lol.

[u/Buchko24]

DirectTV suddenly dropped my Bloomberg channel today with no notice. Tried to watch Asia market opens and was blocked today!??? Wtf is shit going down? 🚀🚀🚀

[u/TheMoorNextDoor]

I called for the Default on Friday.. I may have been early but I was not wrong.