Investors Bargain Hunt in Evergrande Bonds Amid Default

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Investors Bargain Hunt in Evergrande Bonds Amid Default
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Investors are buying bonds of Chinese property developer Evergrande, betting its recent default will force it to start restructuring talks

in recent weeks as the property developer toppled into default and prices hit record lows.

Fund managers are betting creditors will recover far more than the debt’s current prices suggest, despite the likelihood of a complex restructuring. The real-estate company has $20 billion of international bonds outstanding, making it one of the world’s largest distressed-debt investments at the same time low interest rates have investors looking for ways to boost returns.

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