Evergrande Bondholders Find No Takers in Efforts to Hedge Risk
- Banks unwilling to provide debt insurance on Chinese firm
- Credit default swaps common way to profit from restructuring
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Investors in China Evergrande Group’s bonds are struggling to find a hedge to cushion their losses as the troubled real estate giant nears what could be one of China’s biggest debt restructurings.
Banks’ trading desks are reluctant to offer hedging tools after some of them suffered losses earlier in the year, and due to the sparse trading of Evergrande’s CDS, according to people familiar with the matter who were not authorized to speak publicly about the matter.