Goldman buys dead debt of Evergrande’s mates

Advertisement

Goldman Sachs has not had a good Chinese crisis. It has significantly underestimated the scale, breadth and policy determination of China’s property adjustment.

  • It has recommended both buying and selling copper.
  • As iron ore crashed earlier this year, it upgraded its forecast price to over double its current value.
  • As Chinese property swooned, it declared infrastructure would soon come to the rescue of growth before declaring infrastructure dead a few months later.
  • It has been forced to repeatedly cut its growth outlook and is still too bullish.

Now it is buying distressed Chinese developer debt:

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.