Tuesday, September 21, 2021

Evergrande Misses Debt Payments Due Monday As World's Richest Banker Says China's "Lehman Moment" Has Arrived

We touched on this earlier, with analysts at SocGen raising the odds of a "Hard landing" - an "Extended, severe property-led slowdown" - to 30%. The FT shared Barclays' skeptical take on the Lehman scenario comparisons, arguing that Evergrande has little in common with the Lehman scenario aside from the timing, regulators could direct banks to lend to such firms, keeping them afloat and providing time for an extended 'work-out' if needed.

He said in a tweet on Tuesday that Evergrande "seems like China's Lehman moment.

The Government appointed board estimates 61% recovery at IL&FS. Evergrande bonds in China trading ~ 25 cents to a $. - Uday Kotak September 21, 2021.

Kotak also likened the crisis at Evergrande to the collapse of India's Infrastructure Leasing & Financial Services Ltd. The Indian government chose him to oversee the restructuring of the distressed shadow lender three years ago after it defaulted on debt repayments.

On Tuesday morning in New York, news that Evergrande had missed payments due Monday to at least two banks hit - not that this is such a surprise.

With Evergrande expected to miss the next round of payments on Thursday, here's a reminder of how its contagion might spread throughout the global financial system.

As for the payments missed yesterday, Evergrande hadn't made them as of late Tuesday local time, a handful of anonymous sources told Bloomberg.
 

https://www.zerohedge.com/markets/evergrande-misses-debt-payments-due-monday-billionaire-banker-says-chinas-lehman-moment-has 

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