Tuesday, September 21, 2021

Borrowing in foreign currency

 

China Evergrande:


Evergrande is due to pay out interest worth $83 million on a 5-year, U.S.-dollar denominated bond, with an initial issue size of around $2 billion. Another interest payment on a 7-year dollar bond is due next Wednesday, on Sept. 29.


How can the CCP or PBoC help?  They need to go to Wall St. or the Fed… meanwhile the Fed has created another one of their short term credit contractions with all the reserve assets it’s forcing on members “to lend out!”  ($4.2T all time high) US banks in credit contraction mode so there won’t be any help coming from the FRS any time soon…

What a bunch of USD zombie morons… wtf are they borrowing USDs for property development in China?  Now they are really screwed…




3 comments:

Tom Hickey said...

The Chinese government has over a trillion USD saved in treasuries at the Fed. No problem with the PBOC clearing in USD. No swap needed.

Matt Franko said...

I don’t think so… the TIC data shows over $1T in “China”… not necessarily with the CCP…

Like “Ireland” has $300b but it is Apple Computer…

CCP should just let it all collapse and keep the real estate that whoever the dumb shits were that loaned them the USDs paid for…

Peter Pan said...

Is Bannon's head exploding?