The Funds Holding Evergrande’s Distressed Debt, From UBS to Saba

·2 min read

(Bloomberg) -- China Evergrande Group has the world’s biggest pile of troubled debt, with roughly $19 billion of obligations that are actively quoted at distressed prices. The developer’s unraveling is sending shockwaves across global markets, and speculation is running wild about whether Beijing will intervene to prevent a disorderly collapse for the firm.

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In credit markets otherwise short on juicy yields and big distressed situations, that caught the attention of U.S. investment funds looking for new bets.

Funds including Boaz Weinstein’s Saba Capital Management and Ruben Kliksberg’s Redwood Capital Management, and Bruce Richards’s Marathon Asset Management began to build positions in the company’s bonds, while European banks assured investors that they have limited exposure to the troubled developer. Other big-name credit investors had exposure to the company before its latest woes, with some opting to hold on to large chunks of their positions.

Here is a running list of some of the most notable investors known to have had exposure to Evergrande’s debt, based on Bloomberg’s reporting and regulatory disclosures so far this year. Rules on how funds disclose their holdings vary in different countries, and the size of their holdings may have changed after companies’ filings. The list doesn’t represent a comprehensive or real-time picture of debt holders.

Firms That Publicly Disclosed Holdings

Firms That Bloomberg Has Reported Having Holdings

Note

  • As of Sept. 17, Evergrande had $19 billion of distressed bonds outstanding, with approximately $5 billion issued by offshore unit Scenery Journey. Data are based off a search that captures bonds traded globally in all currencies with spreads of more than 1000 basis points and a high score in Bloomberg’s BVAL pricing service

  • Firms that are said to have had holdings are based on Bloomberg News reporting through Sept. 21

Read More

  • What Is China Evergrande and Why Is It in Trouble?: QuickTake

  • China Urges Evergrande to Avoid Default, Repay Retail Investors

  • Banks Race to Assure Markets Evergrande Exposure Is Limited

  • China Pumps $17 Billion Into System Amid Evergrande Concerns

  • China Oversees Accounts, No Bond Payment Yet: Evergrande Update

(Updates with Marathon Asset Management’s holdings.)

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