Distressed debt buyers circling Evergrande bonds – FT

Distressed debt investors have begun picking up the bonds of embattled developer China Evergrande Group, according to one fund manager and the Financial Times newspaper. With liabilities of $305 billion, Evergrande has sparked concerns its cash crunch could spread through China’s financial system and reverberate globally, a worry that has eased with the Chinese central bank’s vow this week to protect homebuyers’ interests. Evergrande has missed two bond interest payments in the past two weeks, bondholders have said, and its offshore debt, amounting to about $20 billion, trades at distressed levels.


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