Forex News May 27, 2022
Evergrande
Evergrande is said to be considering repaying offshore bondholders with cash instalments.
As part of the proposal, Evergrande is said to consider repaying offshore creditors the principal and interest on the debt by converting it into new bonds. The new bonds will then be repaid in instalments over a 7 to 10-year period. For context, Evergrande owes approximately $19 billion to its offshore public bondholders. Evergrande is also expected to complete the proposal by July and sign agreements with investors by December.
That’s a lot of talking, but it’s unclear how they’ll come up with the funds to carry out this repayment plan.
Equities
European equities open slightly higher
Risk remains stable to begin the session
Eurostoxx +0.1 percent, Germany DAX +0.5 percent, France CAC 40 +0.2 percent, UK FTSE flat & Spain IBEX +0.3 percent
As the week begins, we expect steady tones and equities to finish with a more moderate showing. S&P 500 futures are flat, Nasdaq futures are down 0.1 percent, and Dow futures are also flat on the day.