SC Lowy: Evergrande brings investment opportunity for the right names
As more Chinese high-yield names default in the real-estate sector, one of the region’s leading distressed debt investors shares his views on the state of the market – and the investment opportunities that come with it.
The latest in a continuing series of downgrades from the rating agencies has afflicted Modern Land, which conducted a consent solicitation to avoid default in October, and China Aoyuan.
But are opportunities appearing amid the ordure? Euromoney asked SC Lowy founder and chief investment officer Soo Cheon Lee what Asia’s most prominent home-grown high-yield and distressed asset manager makes of what he is seeing.
Clearly, there has been an evolution in recent weeks and what at first looked like a containable one-off event has spread.
The billion-dollar question is how or when developers are going to repay their offshore bonds
“When Evergrande started gapping down, there was some impact for the rest of the Chinese property developers, but quickly we saw some differentiation between Evergrande and the others,” Lee says.