Despite Evergrande paid the coupon due on September 23, just one day before the 30-day grace period deadline, the company’s crisis is still unresolved. But it appears to be idiosyncratic and not systemic, as the market impact has been primarily on China’s HY bond index with limited spill-over into the broad EM HY space.
Despite the last-minute payment of the pending USD bond coupon that allowed the company to avert bond default, China’s Evergrande Group crisis remains unresolved. The company continues to deal with its liquidity crisis, although during the grace period (one month after the first missed payment), it was able to pay the coupon for two RMB bonds, on 23 September and 19 October.
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