Gramercy Says It Added Evergrande Exposure as Bond Prices Crater

Gramercy Says It Added Evergrande Exposure as Bond Prices Crater
Police officers and security personnel walk outside the headquarters of China Evergrande Group in Shenzhen, Guangdong province, China, on Sept. 30, 2021. Aly Song/Reuters
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NEW YORK—Gramercy said on Thursday it “added a small position” in China Evergrande Group bonds as prices have fallen to where there is a “compelling risk/reward.”

The emerging markets specialist investment manager said the decision was made given bond prices dropping to the 30 cents on the dollar area and Evergrande’s “substantial non-core assets ... as well as the essential nature of the enterprise.”