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

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

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For investors, the weather has turned ominous. Credit problems at real estate developer China Evergrande have stoked fears of contagion and a looming debt crisis in China. Investors—to cope—are going to have to watch credit default swaps again—just like they did a decade or so ago. Picking the right CDS will help investors determine just how bad the panic is getting.

A credit default swap is just what it sounds like. One party swaps the risk of a debt default with another party. It’s an insurance product. A CDS buyer is,…


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