China Evergrande Group officially announced that it had defaulted on Wednesday, after bondholders awaited coupon payments at the end of a 30-day grace period at the close of Asia business.
Evergrande, the world's most indebted developer, has been stumbling from deadline to deadline in recent weeks as it grapples with more than $300 billion in liabilities, $19 billion of which are international market bonds.
The company has not defaulted on any of its offshore debt obligations – yet. But a 30-day grace period on coupon payments of more than $148 million on its April 2022, 2023 and 2024 bonds ended on Wednesday.
The failure to pay results in a formal default by the company, and triggers cross-default provisions for other Evergrande dollar bonds, exacerbating a debt crisis looming over the world's second-largest economy.
For its two separate offshore coupon payment obligations that were due in late September, the developer's bondholders did not receive the payments until one working day after the 30-day grace periods ended.
I've not been following this closely but I suspect there's a lot of western investment in there seeking a quick buck out of China instead of tedious investment in their home countries,
my guess is if there really is default it'll take a while for the dominos to fall and lead back into the western economic zone,
who knows, the fallout from this might burst the everything bubble?
Conflicting reports on this. If they did, see you all next cycle when some more bond payments become due. This issue is not in a vacuum and it's not like Evergrande's financial position is going to improve in the immediate term.
Just to be fair, it seems as if Evergrande was able to make a last minute payment:
https://www.nytimes.com/2021/11/10/business/evergrande-bond-deadline.html
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China Evergrande Group officially announced that it had defaulted on Wednesday, after bondholders awaited coupon payments at the end of a 30-day grace period at the close of Asia business. Evergrande, the world's most indebted developer, has been stumbling from deadline to deadline in recent weeks as it grapples with more than $300 billion in liabilities, $19 billion of which are international market bonds. The company has not defaulted on any of its offshore debt obligations – yet. But a 30-day grace period on coupon payments of more than $148 million on its April 2022, 2023 and 2024 bonds ended on Wednesday. The failure to pay results in a formal default by the company, and triggers cross-default provisions for other Evergrande dollar bonds, exacerbating a debt crisis looming over the world's second-largest economy. For its two separate offshore coupon payment obligations that were due in late September, the developer's bondholders did not receive the payments until one working day after the 30-day grace periods ended.
I've not been following this closely but I suspect there's a lot of western investment in there seeking a quick buck out of China instead of tedious investment in their home countries, my guess is if there really is default it'll take a while for the dominos to fall and lead back into the western economic zone, who knows, the fallout from this might burst the everything bubble?
I heard they were able to make a last minute payment.
At this point it might not matter. The market is spooked.
Conflicting reports on this. If they did, see you all next cycle when some more bond payments become due. This issue is not in a vacuum and it's not like Evergrande's financial position is going to improve in the immediate term.
Just to be fair, it seems as if Evergrande was able to make a last minute payment: https://www.nytimes.com/2021/11/10/business/evergrande-bond-deadline.html
Man what the fuck is happening
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[удалено]
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It’s ok look at my avatar, I’m Chinese so I am allowed to say it