China Developers Dominate World’s Risky Debt: Evergrande Update
- Evergrande’s next test is on Oct. 19 with local coupon due
- China dollar bond demand slumps as Evergrande stress mounts
WATCH: StanChart CEO Says China Won't Let Lehman Moment Happen
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Chinese property developers are responsible for about half of the world’s distressed dollar bonds, a fresh indication of the magnitude and global nature of the industry’s woes.
Of the $139 billion of dollar-denominated bonds trading at distressed prices, 46% were issued by companies in China’s real estate sector, according to data compiled by Bloomberg on Oct. 12. That captured bonds trading at yield premiums of at least 10 percentage points above their benchmark rates.