The Macroeconomic Implications Of Evergrande For Risk Assets And Bitcoin
As Evergrande collapses, China is close to becoming a high-yield borrower. In this debt spiral, bitcoin is the best hedge for investors.I have spent my career in financial markets, focusing on risk analysis and trading with a viewpoint that is honed through the prism of credit. I believe credit markets to be the most important, most informed, and unfortunately the most misunderstood of the various risk asset silos. Credit analysts are pessimists by nature. They always ask, “How much can I lose?” as opposed to equity analysts, who seem to believe trees grow to the moon and growth can....
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Federal Reserve Chairman Jerome Powell says the central bank is “not really seeing significant macroeconomic implications” from crypto’s volatility. The Fed chair stressed that there is a need for a better crypto regulatory framework. Fed Chair Powell Says Crypto Needs Better Regulation Federal Reserve Chairman Jerome Powell testified before the Senate Committee on Banking, Housing, and Urban Affairs on “the semiannual monetary policy report to congress” Wednesday. Senator Kyrsten Sinema (D-AZ) asked him whether the Fed has been tracking crypto....
Bitcoin has suffered in the wake of the brewing Evergrande crisis in China. The leading Chinese junk-bond issuer has now missed two loan repayments. Its connection to the broader crypto market has been linked to Tether. The company behind the dollar-pegged stablecoin is said to hold bonds with the Chinese bank, which is one of […]
Global investors have their eyes peeled on the Evergrande Group or the Evergrande Real Estate Group, China’s second-largest property developer by sales. Evergrande Group shares nosedived on Monday dropping to 11-year lows and many analysts and economists are concerned about a possible credit contagion. Credit problems with China’s real estate industry have affected global markets a great deal as European and U.S. stocks have slid during Asia’s overnight.
Evergrande Group’s Counterparty Risk and Liquidity Shocks Could Spark a Credit Contagion on a Global....
In mid-September China’s Evergrande Group, the country’s second-largest property developer by sales, sparked fear in the global economy as the company’s market valuation plummeted to an 11-year low. Global economists have warned that if Evergrande defaults on its debts, it could start a credit contagion similar to the Lehman Brothers bankruptcy in 2007. So far, Evergrande has managed to dodge default on its loans three times in the past month, but Evergrande bondholder Deutsche Marktscreening Agentur (DMSA) seems to be preparing to file for bankruptcy against the real....
Greg Foss discusses, Evergrande, China's high-yield market and his valuation model for bitcoin.