What kind of derivatives traded outside of India and US that Hindenburg shorted for Adani Group?

Using US-traded bonds and non-Indian-traded derivative instruments, Hindenburg Research claimed to hold short positions in Adani Group entities, but it hasn’t revealed the magnitude of its wagers or the types of derivatives and reference securities it utilised.Due to their exorbitant values, the seven publicly traded firms in the Adani group have an 85% downside on a fundamental basis, according to Hindenburg.
Image source- OpIndiaThe entire group is now on shaky financial ground since key listed Adani firms have also taken on enormous debt, including pledging shares of their inflated stock for loans, Hindenburg said.After they are issued, bonds can be purchased and sold on the secondary market. The majority of bonds are traded over the counter between sizable broker-dealers operating on behalf of their customers or themselves, while certain bonds are traded openly through stock exchanges.Derivatives of Indian corporations that are traded outside of India are referred to as non-Indian-traded derivatives. Derivatives are financial contracts that derive their value from a collection of assets or underlying assets. Derivatives’ values are constantly fluctuating based on market conditions. Before Hindenburg Research began focusing on this type of debt, companies issued these instruments as a way to get money from foreign investors because of their lower interest rate. Adani Group’s companies were no different.As notes from Adani Green Energy fell to a historic low on Thursday, the dollar bonds issued by companies within the Adani Group continued to lose value.Bonds issued by Adani Green that mature in September 2024 suffered the worst losses, dropping 11.69 cents to 60.56 cents, their lowest price ever.The day after the company’s flagship Adani Enterprises Ltd. postponed its $2.5 billion share offering, the conglomerate’s dollar-denominated bonds continued to lose money. Adani Ports’ bonds, which have a maturity date of July 2027, fell 5.84 cents to 72.17 cents, their lowest price since October 2018.Bonds issued by Adani Transmission, Adani Electricity Mumbai, and Adani Ports and Special Economic Zone were all trading at lower prices.
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