BBC (January 28)
“Debt-ridden Chinese property giant Evergrande has been ordered to liquidate by a court in Hong Kong.” Evergrande initially “sent shockwaves through global financial markets” when it defaulted in 2021. Since then, it has remained “the poster child of China’s real estate crisis with over $325bn (£256bn) of liabilities.” The most recent court decision does not necessarily mean “Evergrande will go bust and collapse,” but it is expected “to send ripples through China’s financial markets at a time when authorities are trying to curb a stock market sell-off.”
Tags: 2021, China, Collapse, Court, Crisis, Debt-ridden, Defaulted, Evergrande, Financial markets, Hong Kong, Liabilities, Liquidate, Real estate, Ripples, Shockwaves
Institutional Investor (June 19)
“Income potential and low interest rates are fueling pension fund interest in commercial real estate.” Fund managers struggling to find “investments that can match long-term liabilities and fight inflation” are finding “some measure of calm” in real estate.
Tags: Fund managers, Income, Inflation, Interest rates, Investments, Liabilities, Pension funds, Potential, Real estate
Financial News (December 24)
In 2013, some U.S. companies will benefit from changes to interest-rate pension liability assumptions, with the newly approved use of a 25-year rate average. This “will generally produce a higher rate, which will lead to a lower overall liability.” Some companies will now be legally able to reduce pension funding. “The catch is that this is a game of smoke and mirrors. The actual pension obligation hasn’t changed. And by putting less into their plans today, companies may end up facing a bigger bill in the future.”
Tags: Assumptions, Corporate pensions, Liabilities, Obligations, U.S.
