Ashmore Doubled Down on Evergrande Debt as Others Hit the Exits
- The asset manager bought more of the Chinese developer’s bonds
- Prudential, RBC were among investors who cut holdings
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The news was bad and about to get worse. Property developer China Evergrande Group appeared to be buckling under its massive debt load and investors were headed for the door. For Ashmore Group Plc, though, it looked like a buying opportunity.
From July to September, as headlines battered Evergrande’s stock and bond prices, London-listed Ashmore bought almost another $100 million of bonds issued by the developer or its subsidiaries. The trades brought its holdings of the debt to more than $500 million at the end of September, according to data compiled by Bloomberg. The total level held by the asset manager may be even higher since 75% of Ashmore’s assets are held in segregated mandates, for which data may not be available.