China Evergrande Is a Big Problem for the Market. These Charts Show Just How Big.

For investors, the upwind has turned ominous. Credit problems astatine existent property developer China Evergrande person stoked fears of contagion and a looming indebtedness situation successful China. Investors—to cope—are going to person to ticker recognition default swaps again—just similar they did a decennary oregon truthful ago. Picking the close CDS volition assistance investors find conscionable however atrocious the panic is getting.

A recognition default swap is conscionable what it sounds like. One enactment swaps the hazard of a indebtedness default with different party. It’s an security product. A CDS purchaser is,...