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Evergrande teeters on edge of default as $148M payment falls due

reuters.com

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Re: Evergrande teeters on edge of default as $148M payment falls due

#11

Post by stefan_ »

nwidynski wrote: post #4
polskibus wrote: post #3

original title is "Evergrande teeters on edge of default as $148 mln payment falls due". not exactly "defaults"

This post was in direct response to: http://dmsa-agentur.de/download/20211110_DMSA_EVG_PM_en.pdf . I just thought the reuters article contained more relevant information.

This PDF is predicting "the final meltdown of the global financial system" in the first paragraph. I don't want to be a negative nancy, but it reads a lot like "all vaccinated people will fall over dead by end of the year" to me.

Re: Evergrande teeters on edge of default as $148M payment falls due

#13

Post by chalst »

bingohbangoh wrote: post #10

So is this still "the next Lehman brothers"? Or have we moved on to something else?

It's Lehman-like in that I don't think China will be bailing anyone out.

It's not Lehman-like in that the company isn't a tangled octopus in the middle of the financial system. Lots of investors exposed to developing markets will get burned, but I don't think the knock-on effects will be huge.

Re: Evergrande teeters on edge of default as $148M payment falls due

#15

Post by aplummer »

asplake wrote: post #6
nwidynski wrote: post #4

Earlier quoted context omitted.

This post was in direct response to: http://dmsa-agentur.de/download/20211110_DMSA_EVG_PM_en.pdf . I just thought the reuters article contained more relevant information.

Edit: that link seems to justify the title but it doesn’t fit the main article. Seriously misleading title though. A default is a well-defined event. “Defaults” implies that it has happened. “Teetering” is something else. Needs fixing.

It did default though, the title of the Reuters article is playing it too safe. The contents of the first paragraph describe the default.

Re: Evergrande teeters on edge of default as $148M payment falls due

#16

Post by makerofspoons »

nwidynski wrote: post #4
polskibus wrote: post #3

original title is "Evergrande teeters on edge of default as $148 mln payment falls due". not exactly "defaults"

This post was in direct response to: http://dmsa-agentur.de/download/20211110_DMSA_EVG_PM_en.pdf . I just thought the reuters article contained more relevant information.

AP is reporting the default is official: https://apnews.com/press-release/pr-newswire/business-china-...

Re: Evergrande teeters on edge of default as $148M payment falls due

#17

Post by chalst »

polskibus wrote: post #3

original title is "Evergrande teeters on edge of default as $148 mln payment falls due". not exactly "defaults"

If you don't make every payment in whole when it is due, and you haven't managed to renegotiate with your creditors, then you've defaulted. It doesn't mean that the debts are worthless, but it does mean that their value is up in the air.

Re: Evergrande teeters on edge of default as $148M payment falls due

#19

Post by christkv »

darkwater wrote: post #12

Can anyone ElI5 what this could potentially mean for the world economy?

Exposure to the international market is 19 billion USD so I'm guessing some funds will take a bad hit and will start legal proceedings. Bonds must have been junk for awhile now though so don't know who takes the hit. The unknown is the internal Chinese market side-effects. Depends on who holds the debt and if the government steps in to rescue it.
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