Country Garden’s Missed Payment Triggers CDS Payout

 With $186 billion of total liabilities, Country Garden is one of the world’s most indebted builders

The trustee told the bond’s holders that the delinquency “constitutes an event of default.”

Country Garden’s dollar notes are indicated at just 4 cents. Some of the bonds were near 80 cents in June. 

Its shares in Hong Kong have plunged 74% this year

How Credit Default Swaps Work

https://www.bloomberg.com/news/articles/2023-03-29/how-credit-default-swaps-cds-work-and-how-they-go-wrong  

https://www.investopedia.com/terms/c/creditdefaultswap.asp

 

In the 2008-2009 financial crisis that nearly took down the entire U.S. financial system was a boom in

collateralized debt obligations (bundles of risky mortgages) and 

credit default swaps (insurance deals on risky mortgages.) 

 Bloomberg 26 October 2023

Englund: Excellent about Bitcoins. Tulips, England’s South Sea Company and France’s Mississippi Company (englundmacro.blogspot.com)

 

Derivatives

Derivatives (internetional.se)

Country Garden’s Losses Fan Worst Fears on China Property Market

https://englundmacro.blogspot.com/2023/08/country-gardens-losses-fan-worst-fears.html