<p>Royal Bank of Canada's BlueBay Asset Management has joined BlackRock in accumulating credit exposure to ailing developer China Evergrande in recent months, according to <em>Morningstar</em>, while HSBC and TCW funds have closed positions.</p>.<p><em>Morningstar</em>'s analysis, published on September 24, also showed that UBS and funds at London-based Ashmore Group retained significant holdings in Evergrande debt, based on data current at the end of August. Funds run by Fidelity and SinoPac held sizeable investments too, <em>Morningstar</em>'sresearch showed.</p>.<p>Evergrande owes $305 billion and has run short of cash. Some investors worry a collapse could pose systemic risks to China's financial system and reverberate around the world.</p>.<p><strong>Read more: <a href="https://www.deccanherald.com/business/business-news/china-evergrandes-electric-car-units-shares-tumble-26-after-warning-1034642.html" target="_blank">China Evergrande's electric car unit's shares tumble 26% after warning </a></strong></p>.<p>Last week Evergrande failed to pay interest on a $2 billion dollar bond maturing in March next year. It will default if no payment is made within a 30-day grace period.</p>.<p>HSBC's asset management division and fund manager TCW exited Evergrande positions in September and August, Morningstar, a research firm, said. Credit Suisse, not mentioned by <em>Morningstar</em>, sold down its entire exposure to Evergrande debt last year, the <em>Financial Times</em> reported on Friday.</p>.<p>Fellow Swiss bank UBS has Evergrande debt exposure totalling about $283 million across multiple portfolios, <em>Morningstar </em>said in its report. Ashmore's runs to $146 million.</p>.<p><em>Morningstar </em>had earlier noted BlackRock's increased exposure but said in its Friday note that BlueBay had also been gradually buying, believing default risks are in the price.</p>.<p>Evergrande's dollar bonds have been tumbling since May when it was tardy in paying suppliers. A $1 billion dollar bond with a coupon payment due next week last traded at the distressed level of 27.5 cents on the dollar.</p>.<p>Ashmore and HSBC declined to comment. Of the other fund managers mentioned by <em>Morningstar </em>, only T Rowe Price - which closed its Evergrande position last year - had immediate comment when contacted by Reuters.</p>.<p>"A period of elevated high-yield default rates may lead to dollar market access being shut for some weaker issuers," said Sheldon Chan, portfolio manager of T Rowe Price's Asia credit bond strategy by email.</p>.<p>"This may keep volatility elevated ... and present attractive entry points to add exposure to the sector." </p>.<p><strong>Check out the latest DH videos:</strong></p>
<p>Royal Bank of Canada's BlueBay Asset Management has joined BlackRock in accumulating credit exposure to ailing developer China Evergrande in recent months, according to <em>Morningstar</em>, while HSBC and TCW funds have closed positions.</p>.<p><em>Morningstar</em>'s analysis, published on September 24, also showed that UBS and funds at London-based Ashmore Group retained significant holdings in Evergrande debt, based on data current at the end of August. Funds run by Fidelity and SinoPac held sizeable investments too, <em>Morningstar</em>'sresearch showed.</p>.<p>Evergrande owes $305 billion and has run short of cash. Some investors worry a collapse could pose systemic risks to China's financial system and reverberate around the world.</p>.<p><strong>Read more: <a href="https://www.deccanherald.com/business/business-news/china-evergrandes-electric-car-units-shares-tumble-26-after-warning-1034642.html" target="_blank">China Evergrande's electric car unit's shares tumble 26% after warning </a></strong></p>.<p>Last week Evergrande failed to pay interest on a $2 billion dollar bond maturing in March next year. It will default if no payment is made within a 30-day grace period.</p>.<p>HSBC's asset management division and fund manager TCW exited Evergrande positions in September and August, Morningstar, a research firm, said. Credit Suisse, not mentioned by <em>Morningstar</em>, sold down its entire exposure to Evergrande debt last year, the <em>Financial Times</em> reported on Friday.</p>.<p>Fellow Swiss bank UBS has Evergrande debt exposure totalling about $283 million across multiple portfolios, <em>Morningstar </em>said in its report. Ashmore's runs to $146 million.</p>.<p><em>Morningstar </em>had earlier noted BlackRock's increased exposure but said in its Friday note that BlueBay had also been gradually buying, believing default risks are in the price.</p>.<p>Evergrande's dollar bonds have been tumbling since May when it was tardy in paying suppliers. A $1 billion dollar bond with a coupon payment due next week last traded at the distressed level of 27.5 cents on the dollar.</p>.<p>Ashmore and HSBC declined to comment. Of the other fund managers mentioned by <em>Morningstar </em>, only T Rowe Price - which closed its Evergrande position last year - had immediate comment when contacted by Reuters.</p>.<p>"A period of elevated high-yield default rates may lead to dollar market access being shut for some weaker issuers," said Sheldon Chan, portfolio manager of T Rowe Price's Asia credit bond strategy by email.</p>.<p>"This may keep volatility elevated ... and present attractive entry points to add exposure to the sector." </p>.<p><strong>Check out the latest DH videos:</strong></p>