So whats up with this sell off 9-20-2021

JSOP said:
Bill Hwang didn't cause a peep. Blackrock is really the only bona fide US company on the list and they need to be warned that if they continue to stick their s*** in China when they shouldn't be, they will be on their own and no bailout will be given to them if they f*** up. UBS is Swiss and HSBC is Hong Kong really so they will definitely not be on the bailout list of US of A. So if China thinks letting Evergrande go down is going to somehow hurt the West particularly US, it's dead wrong.
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I work for an IB. Let me tell you this with absolutely certainty, Bill Hwang made a very big 'peep'.
 
Are credit spreads expanding, blowing out.? ...probably changed a wee, teeny bit.
Stocks lag these right?
 
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JSOP said:
This Evergrande s*** is really confined to China and China only, at least this time, thank god.
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Don't count on it, one never knows the depth of Western pension fund investment stupidity.
Blackrock idiots were a case in point recently expousing the West should invest in China.
 
JSOP said:
Not to the market, it didn't.
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You must mean the market that sells fruits and vegetables.

It is obvious to the rest of us who trade the markets of equities/futures/options/forex it most certainly did.

$20 billion vaporized just like that.

Don't be a politics obsessed clown your whole life.
 
This move lower is the first daily lower low since the Mar 2020 bottom.

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I call bs on today's choppy af up bounce, likely volatile chop again prefed wed, dcb then eod selloff after Powell. Should be interesting to trade the volatility
 
themickey said:
Don't count on it, one never knows the depth of Western pension fund investment stupidity.
Blackrock idiots were a case in point recently expousing the West should invest in China.
More...

According to this article, the biggest holder of the Evergrande bonds is Ashmore it seems with $400 million as of end of June and UBS has $300 million as of July. https://www.ft.com/content/87fddf09-ef69-49b3-87bc-1a2d84fffd91 Both Blackrock and HSBC's exposure to the Evergrande s*** is 1% and 1.22% respectively of their portfolio holdings as of Sept. according to this article from Morningstar. https://www.morningstar.hk/hk/news/215418/whos-buying-evergrandes-bonds.aspx
And this I presume is after they increased their holdings of bond share in August, just before all the suppliers and contractors demand to get paid which triggered the liquidity crisis (I hope that is an unfortunate coincidence and not a coordinated move). How much that 1% and 1.22% of their respective portfolio holding mean? I don't know and I cannot find any information online that gives an exact dollar figure.

What troubles me a little is this passage:

"S&P Global Ratings expects the company to default this week and estimates it has close to $20bn in dollar-denominated bonds outstanding from two offshore subsidiaries."

So those $20 billion dollar-denominated bonds, are those the total foreign debts outstanding or are there more? If they are dollar-denominated, I assume those would be the ones issued to foreigners? Do they include the foreign debts like the $400 million from Ashmore and the $300 million from UBS and also the % of portfolio holdings of Blackrock and HSBC? So far no article has stated clearly exactly out of the $300 billion debts, how much in dollar figure or in % are held by foreign entities. I mean I know they are not enough to trigger a 2008 financial crisis but I would still like to know how much was invested in that company.

I hope Blackrock and all those western investment management companies who are still delusional about the reality of investing in China would finally wake up and realize the political and systematic risk from investing in these "emerging" markets and manage these undue risks accodingly, aka listen to warnings from people like Soros and stay away from these "emerging" markets!!
 
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