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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

#21

Post by AlexCoventry »

ad8e wrote: post #7
asplake wrote: post #6

Earlier quoted context omitted.

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.

> Exactly what time the grace period expires on Wednesday is unclear, but the two sources with knowledge of the matter said some bondholders had not been paid by the end of the Asian business day. It's ambiguous, but the title is a fair conclusion.

Wednesday finished about three hours ago, in China, FWIW.

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

#23

Post by JumpCrisscross »

bingohbangoh wrote: post #10

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

> is this still "the next Lehman brothers"?

No, and it never was.

With Lehman, the banks stopped lending to Lehman and then to everyone else. In China, Beijing can let Evergrande default while compelling lending to peripheral players. Thise players know this. The market knows this. That makes contagion risk de minimis. (For Western central banks, the analogous policy tool is “extraordinary measures,” i.e. committing to buying everything in sight.)

Keep in mind that Evergrande is defaulting because Beijing implemented debt limits. They’re wilfully deflating the bubble American policymakers ignored in ‘08. I’m a China hawk. But this whole episode is a show of strength for their system.

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

#25

Post by yorwba »

makerofspoons wrote: post #16
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.

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

> Press release content from PR Newswire. The AP news staff was not involved in its creation.

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

#26

Post by Specie33 »

Interesting about this is that Evergrande is defaulting only on foreign held debt. Not internal debt after a ccp mandate.

If their economy continues its downturn then this precedent would hold for all debt. I would really watch personal funds and investments and insure they dont hold any chinese debt as an asset.

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

#27

Post by klipklop »

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.

>Evergrande, the world's most indebted corporation, could ultimately lead to a "Great Reset", i.e. the final meltdown of the global financial system

Bonus points for that PDF using the phrase "great reset."

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

#28

Post by dang »

polskibus wrote: post #3

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

Yes - submitted title was "Evergrande defaults" and we've reverted it now.

"Please use the original title, unless it is misleading or linkbait; don't editorialize."

https://news.ycombinator.com/newsguidelines.html

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

#29

Post by bsanr2 »

mmastrac wrote: post #20

How much exposure does the Western world have to this? My guess would be "not much". It'll sting some emerging market investors, but I don't think you'll see a massive knock-on here.

A lot of people seem intent on letting us know that this is the case, at least.

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

#30

Post by jonahbenton »

Specie33 wrote: post #26

Interesting about this is that Evergrande is defaulting only on foreign held debt. Not internal debt after a ccp mandate. If their economy continues its downturn then this precedent would hold for all debt. I would really watch personal funds and investments and insure they dont hold any chinese debt as an asset.

Uh, Tether?
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