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Investors Bargain Hunt in Evergrande Bonds Amid Default - The Wall Street Journal

Evergrande Says It’s Back to Work, Homeowners Say Not Fast Enough

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Evergrande Says It’s Back to Work, Homeowners Say Not Fast Enough

Evergrande Says It’s Back to Work, Homeowners Say Not Fast Enough

Property developer China Evergrande, which fell into default last week, has embarked on a social-media campaign to show that construction has resumed and says it is doing whatever it takes to deliver homes. WSJ compares these posts with ones from upset buyers. Photo composite: Emily Siu

Updated Dec. 16, 2021 12:31 pm ET

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Some money managers purchased bonds of China Evergrande Group in recent weeks as the property developer toppled into default and prices hit record lows. 

Fund managers are betting creditors will recover far more than the debt’s current prices suggest, despite the likelihood of a complex restructuring. The real-estate company has $20 billion of international bonds outstanding, making it one of the world’s largest distressed-debt investments at the same time low interest rates have investors looking for ways to boost returns.