Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CHINA
- In the past two months, we have seen that the uncertainty over Evergrande's outcome (liquidity event, restructuring, default...) has led to a rise in contagion risk to other major Chinese real estate developers.
- This chart shows the ST 'Kungfu' bond prices for major Chinese developers.
- Fantasia Holdings bonds are currently trading at distressed prices, between 30 and 60 cents on the dollar (it is important to note that they were trading at par in July).
- Earlier this month, we saw that some private banks stopped accepting the companies' bonds as collateral, assigning them a zero lending value.
- Interestingly, analysts have commented that the company's 27bn CNY in cash could provide sufficient coverage for the 500mil+ USD repayments occurring later this year (December 17 and 18).
- Could we see a sharp rebound in bond prices if the situation eases and confidence starts to increase?
Source: Bloomberg Intelligence
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok