Skip to content

More Defaults Seen Following Sunac’s Failure: Evergrande Update

Video player cover image

WATCH: Chinese developer Sunac failed to pay a dollar-bond coupon before a Wednesday deadline. Rebecca Choong Wilkins reports.

Source: Bloomberg

Updated on

Sunac China Holdings Ltd.’s dollar bond default has prompted analysts to warn of a fresh wave of debt blowups by weaker developers as a liquidity crisis continues to plague the industry. 

High-yield dollar notes from Chinese issuers dropped for a record eight straight months through April. Issuance has tumbled as global money managers balk at extending credit, with lockdowns weighing on the economy. Refinancing concerns are flaring as defaults mount and inflation drives rates up globally.