The funds that own the near-default Country Garden issues include PIMCO GIS Asia High Yield Bond fund, Fidelity Asian High Yield fund, Allianz Dynamic Asian High Yield Bond and Goldman Sachs Asia High Yield Bond.
As the date for troubled Chinese real estate giant Country Garden’s coupon payment draws nearer — a payment of which the company is likely to default — six funds for sale in Singapore are stuck with the securities, according to Morningstar.
The firm notes that Country Garden has a grace period of until September 6 to pay its coupon liabilities. If it fails to make the payments, which Morningstar thinks is likely, the company will declare a default on its two US dollar bonds that mature on February 6, 2026 and August 6, 2030.
