China Evergrande lower; E-House, Modern Land drop following downgrades; Team Health up

By Cristal Cody

Tupelo, Miss., Oct. 13 – China’s distressed property developer space continued to balloon on Wednesday with bonds from related issuers under pressure following ratings downgrades.

China Evergrande Group’s paper weakened on Wednesday after the company reportedly missed a third round of bond payments due on Tuesday.

China Evergrande’s 8¼% senior notes due 2022 (C/C/C) fell 1½ points to 22¾ bid by the close, a market source said.

E-House (China) Enterprise Holdings Ltd.’s 7.6% senior notes due 2023 (B+) were down 1 point on Wednesday at 59½ bid.

Modern Land (China) Co., Ltd.’s 9.8% senior notes due 2023 (Caa3//B) traded sharply weaker at 20 bid in strong secondary volume, a source said. The notes have sunk from trading in September at 90 bid.

Greenland Global Investment Ltd.’s 5.9% senior notes due 2023 (Ba2/B) were last seen on Tuesday improved at 50 bid in light trading, a source said.

The notes went out Friday ahead of the long U.S. holiday weekend at 45½ bid.

Elsewhere, Team Health Holdings, Inc.’s 6 3/8% senior notes due 2025 (Caa3/CCC) recovered nearly ½ point on Wednesday after ending the prior week down 7½ points, according to market sources.

The notes were quoted near the 90 bid area.

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