Asia’s high-yield bankers and investors are watching the plight of Evergrande with a sense of helplessness.
In mid October, the sprawling Chinese real estate developer is about halfway through a 30-day grace period to remedy a default on an offshore dollar bond on September 23. The missed payment, for $83.5 million, is very much the tip of the iceberg. Evergrande has $20 billion of offshore bond borrowings, which in turn are a fraction of its $300 billion overall liabilities.
Few are expecting a positive outcome.
“There’s a playbook to these things that goes right back to the 1990s,” says an Asian private wealth manager.
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