Evergrande finds breathing space

I am not worried about this at all. China cannot afford to let a daisy chain of failures rip through its ponzi-developer sector. It is the key policy lever for stimulus as the world stumbles through COVID. Via Bloomie:

China Evergrande Group took a major step toward avoiding a cash crunch that had threatened to roil the nation’s $50 trillion financial system and reverberate across global markets.

After a turbulent few days during which banks, bondholders and senior government officials became increasingly alarmed about Evergrande’s financial health, the world’s most indebted developer said it reached an agreement with a group of strategic investors to avoid repayments that would have placed a sizable strain on the junk-rated company’s balance sheet.

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