Implications of Evergrande: ASR’s Adam Wolfe in The Times
“ … with knock-on effects to other industries, which in turn would hit income and further hit property prices. Think Japan in the 1990s.”
Adam anticipates a state-guided restructuring, with creditors having to absorb losses. But if one of Evergrande’s lenders does not have sufficient capital to absorb the losses, regulators would likely wind down the bank, but without imposing losses on its creditors.
As per ASR’s Asset Allocation, we suggest investors take advantage of any pullbacks in equities to add exposure.
To read the full Times article, see HERE (Times subscription may be required)
ASR clients can read Adam’s note, If Evergrande defaults, what’s next? HERE.
To request a copy as part of a trial, please click HERE.