Evergrande Woes Spread to China’s $12 Trillion Local Market

The video discusses the increasing stress in China's $12 trillion bond market, highlighting the challenges faced by Evergrande and the implications of high yields on refinancing. It explores the potential for cross-defaults and the urgency for Evergrande to address its financial obligations.

What was the previous state of China's domestic bond market before the recent stress?

• It was unaffected by Evergrande.

• It was highly volatile.

• It was in a constant decline.

• It was resilient despite worries.

What recent market event is described as a turning point?

• A savage sell-off and soaring yields.

• A significant market rally.

• A stabilization of bond prices.

• A decrease in borrowing costs.

What is a consequence of the high refinancing costs mentioned in the video?

• Market yields stabilize.

• Borrowing costs decrease.

• Firms can easily refinance.

• Firms struggle to refinance.

What is the significance of the jumbo fortune note for Evergrande?

• It is closely watched due to cross-default risks.

• It has no impact on other creditors.

• It is already fully paid.

• It is a minor financial obligation.

What could trigger a cross-default for Evergrande?

• A successful asset sale.

• A default on the jumbo fortune note.

• A decrease in market yields.

• An increase in refinancing costs.