MBS Morning: What is Evergrande and Why Do Bonds Care?

Evergrande is a Chinese real estate company that has been circling the drain for months.  During that time, press reports increasingly suggest that Evergrande’s collapse could have some measure of systemic impact given the vast amount of money it owes to other institutions.  Several of the likely-to-default bonds are due this week and so far, there is no word on anything resembling a bailout from the Chinese government.  Some of the most alarming opinions have suggested this is China’s “Lehman moment,” but there’s plenty of pushback against that thesis. 

Still, the…