10-21-2021, 07:02 AM
Evergrande has technically defaulted on their USD bonds already. There was a grace period (probably to see if they can sell some assets) which is apparently going to end this weekend, so I guess then the default on USD bonds is official.
It'll be interesting to see how the CCP will handle this. Evergrande is gone, that is for sure, but I wonder how effective they have been in stopping the snowball effect. I think I've also seen two other (smaller) developers basically declare bankruptcy in these past couple of weeks. And I believe that one bank went under since they were a little over-exposed to Evergrande. ooops.
It'll be interesting to see how the CCP will handle this. Evergrande is gone, that is for sure, but I wonder how effective they have been in stopping the snowball effect. I think I've also seen two other (smaller) developers basically declare bankruptcy in these past couple of weeks. And I believe that one bank went under since they were a little over-exposed to Evergrande. ooops.