19/04/2024
Expert Talk
The Upside of Geopolitical Uncertainty
Evergrande and its spill-over effects
Friday 29 October 2021
Expert Talk
Evergrande and its spill-over effects
Evergrande crisis: Despite Evergrande paid the coupon due on September 23, just one day before the 30-day grace period deadline, the company's crisis is still unresolved. But it appears to be idiosyncratic and not systemic, as the market impact has been primarily on China’s HY bond index with limited spill-over into the broad EM HY space. Yet, the situation clearly points to the weakness of the overall property sector in China, with other developers recently having trouble.
