Skip to content

Saba, Redwood Are Among Credit Funds Buying Evergrande Bonds

  • Credit funds bought notes in recent weeks amid crisis
  • Chinese troubled developer has coupon payments due on Thursday
Video player cover image
WATCH: S&P says Evergrande is unlikely to receive direct government support and is on the brink of defaulting. Stephen Engle reports.(Source: Bloomberg)
Updated on

Saba Capital Management, Redwood Capital Management, Contrarian Capital Management and Silver Point Capital are among funds that have built positions in offshore bonds of China Evergrande Group’s ahead of a likely default of the real estate giant.  

The four investors are among the credit funds that took a position in Evergrande’s $19 billion dollar-denominated notes in recent weeks, as prices fell to about 25% of face value amid uncertainties over the future of China’s second largest developer, according to people with knowledge of the matter who asked not to be identified because the transactions are private.