Heard through the grapevine that they're scooping up these bonds at 20 cents on a dollar, hoping to sell them for 60. NEW YORK, Sept 21 (Reuters) - Fund giant BlackRock and investment banks HSBC and UBS were among the largest buyers of the debt of embattled Chinese real estate developer Evergrande Inc, Morningstar data shows. BlackRock added 31.3 million notes of Evergrande's debt between January and August 2021, pushing its stake in the company to 1% of the assets in its $1.7 billion Asian High Yield Bond Fund, according to Morningstar. HSBC increased its positions in the company by 40% through July, according to Morningstar. UBS increased its position by 25% through May, the latest date available in the fund tracker's database. None of the companies responded to requests to comment for this story. At the same time, other large fund firms such as Fidelity, Pimco, and Allianz cut their positions in the company by up to 47% between January and July, Morningstar said. Growing fears that Evergrande will default on its $305 billion in liabilities has rattled global markets this week as investors worry that a downturn in the Chinese property market will spill over into the global economy. read more https://www.reuters.com/business/fi...uyers-evergrande-debt-morningstar-2021-09-21/
%% That could work ; buy for $00.20+ sell for 00.02. May be, maybe not make a profit. Regardless of profit or loss on that, SEPT is a historical sell month not\ much to do with a known mismanaged RE co. Thanks, you maybe right on the profits targets?? NOT a prediction /not bank insured\ not FDIC insured............................
Are you saying that I should move my hard-earned dinero's from HSBC HK... Might be a good move to consider right now.
1.7B is small for the category. They just started it last year. 1% is a full bet for this fund. They are punting. PIMCO is the smart money.
%% PIMCO has a better rep than BLK. I don't have any complaints on DVY/BLK. BLK must have a good marketing dept/LOL\ IBD rates BLK #32 in that sector. BLK does a good job with ishares ETFs; but i remember Carl Ichan rebuked Larry Fink to his face on TV over ''non liquid bond ETfs''..................................................................
Why? You think HSBC buying distressed Evergrande "junk" bonds is a bad move? They'll prolly turn a profit when it bounces, unless you think Xi will push Evergrande into bankruptcy. God only knows how Chinese bankruptcy law works.
I am sure they had bought a lot more of those when they were not "distressed" HSBC's exposure to chinas developers is significant, and a bank that neither Beijing nor London would like to rescue if things go south and more developers get in trouble. May consider DBS or a South Korean bank like Kookmin to park cash with for some time .
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