BondCliq CEO Chris White weighs in on Evergrande

BondCliq's Chris White believes Evergrande is proof that the international corporate bond market is starved for yield. With CNBC's Melissa Lee and the Fast Money traders, Guy Adami, Tim Seymour, Karen Finerman and Dan Nathan. For access to live and exclusive video from CNBC subscribe to CNBC PRO: cnb.cx/2NGeIvi
A liquidity crisis at a large Chinese property developer has shaken global markets, and strategists say it could send ripples across the global economy.
But they also say the issue will likely be contained by the Chinese government before it wreaks damage in the banking system, and it is not expected to lead to a broader global financial contagion.
The critical question for investors is how and when do leaders in Beijing handle the situation and whether they launch a restructuring of China Evergrande Group, as many market pros expect.
Investors have worried that Beijing is likely to let the company fail, wounding stockholders and domestic bondholders. Evergrande faces a debt payment on its offshore bonds on Thursday, after it said last week it was facing unprecedented difficulties.
“Everyone was expecting the government would have some kind of resolution, given that Evergrande is a systemically important company,” said Jimmy Chang, chief investment officer at Rockefeller Global Family Office. “It has $300 billion in outstanding debt. There is a contagion issue if China Evergrande is not resolved. I think it will end up having some deep-pocketed state-owned enterprises to take over.”
Market pros don’t think that Evergrande could lead to the next financial crisis, but it could lead to more volatility.
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[@hazemmathkour5150]

Who's this professional everyone is talking about I always see her post on top comment on every KZbin video I watched

[@philkeh]

I am selling all my Chinese stocks. Its too risky to invest there atm. What do you think?

[@PretentiousStuff]

that guy rocking those oldschool headphones like that instead of stupid airpods, he's gotta be legit.

[@SEADOOTBA]

He does trucking as a side hustle.

[@KASPA-KEY]

In-ear headphones are more likely to contribute to tinnitus and hearing loss than other types of headphones. Just a word of warning. Old school muffs are better for your ears 👂

[@covidisascam4556]

Let them fail

[@Pierrechoy]

It shows ticket symbol 6666 at 2:10 which is for the property management / service affiliate. The developer is traded as 3333 in the Hong Kong market.

[@JJ-iu6sr]

0:10 - Spelling error, should be Evergrande, not Evergrane

[@Mag1c4lyfe]

That's CNBC for ya. 😆

[@guppy0112]

They can't even be bothered to use a spell-checker- they can't even get that right- and we're supposed to trust them with informing us and telling us the truth? Lmfao😂😂

[@andrewbccoast]

so is he suggesting the middle class taxpayers bail out these failed ventures like we did here?

[@joenichols3901]

Yes. They paid back all the loans with interest. Middle class made a profit on that deal

[@patsylennon7335]

@@joenichols3901 Keep drinking the Kool Aid

[@joenichols3901]

@@patsylennon7335 you're the one drinking the kool aid . You don't know what you're talking about. Americans made money off the bailouts dummy

[@masterjedi487]

Let them default that is the natural order of any organization that over exposes themselves. Certain banks should not be operational right now , facts.

[@Aramsa-Khan]

Comparing a $300 billion Evergrande saga with the Lehman Brother is like comparing the US with Uganda. The rest you go figure out. The answer is that it ain't going to have an impact on China's continuous economic growth, although it does concern associates of Evergrande. In short, we won't lose sleep over it.

[@zomgoose]

Let the Zombie Company die.

[@souljourney9535]

Zombie company ? Could you explain

[@rockymarcianothe3rd135]

God I hope black rock is fully vested into this high yield garbage trap. Would love to see that corporation become a real corpse.

[@robbrown4621]

Yes! I agree. :)

[@HelptheBroncos]

trump and putin and xi shorted evergrande. i hate it...but well played. karma coming for yall

[@Bigjoe99]

Chinese gov concern is 1) home buyer 2) RE market 3) Credit market. It could not give a hoot about Evergrande or the bondholders. They are going to let competitor strip it and the bondholders.

[@janosik150]

lol, I didn't know China was part of USA??? and stock market went down today because of it :))))

[@InspireMe819]

i don't think the largest developer can afford to buy their assets. I wonder how much in liabilities does the largest developer in China owes?

[@hamidreza965]

Why dont us tax payers and fed pay them few trilions 😅

[@PretentiousStuff]

Have they blamed this on Trump yet?

[@gargamelandrudmila8078]

Wait a minute. Basically this guy is clearly stating that bond investors expect risk adjusted returns but when that risk realises and not their returns they expect to be bailed out. 😂😂😂😂😂 WOW. Talk about crony capitalism. The buffoon cnbs presenter sees NOTHING wrong with this market expectation....at all.

[@patsylennon7335]

They do the same thing in America

[@WholeLottaBulldog]

The greed and brazen nature of it is astounding. How about cop the loss like a man and learn from it?

[@duckmeat4674]

Bonds are suppose to be ensured to be safe above all other investors, just behind creditors. It's perfectly natural

[@robb1324]

These were my exact thoughts while watching it as well. Truly amazing.

[@healthygrowth7760]

That sounds like the USA balance sheet with double deficits

[@DataJuggler]

They don't even keep track of how many US dollars they print. It would be bad for morale.

[@secretsquirrel6718]

Geeze. Who doesnt have an opinion. What does Ronald McDonald have to say. Or perhaps they could interview that shirt guy from Fantasy Island.

[@Skeptycs]

dollar denominated emerging market debt... try saying that five times fast lmao

[@proscapedesigns]

They did between the two of em lol

[@aaronlim13]

U.S stock always sink at September,October，February and March

[@InspireMe819]

If you are nurse, a doctor, a school teacher, or in the hospitality business, do not quit your job!

[@stephanienguyen6992]

Don't worry - Printing Cash 👿👿👿

[@brian91145]

What if debt is the problem?