EGRNF - Mohamed El-Erian: I don't think we're at 'a Lehman moment' with China's Evergrande

Mohamed El-Erian, former PIMCO CEO and chief economic adviser at Allianz, said Monday that worries about a default at China-based property company Evergrande (OTCPK:EGRNF) (OTCPK:EGRNY) haven't reached a "Lehman moment," referring to the collapse of Wall Street bank Lehman Brothers during the 2007-2008 financial crisis. However, El-Erian told CNBC that the crisis at Evergrande "is shaking key tenets of this global investment theme." Specifically, the former PIMCO CEO argued the uncertainty surrounding Evergrande undermines the assumption that governments will always step in to save the financial sector when a large player reaches a crisis moment. "We're going to be tested over the next few sessions," El-Erian said of the stock market. Markets in China suffered a sell-off on Monday amid worries that Evergrande (OTCPK:EGRNF) (OTCPK:EGRNY) would not be able to meet its debt obligations. The company is struggling under more than $300B in debt and has already warned of default.

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Mohamed El-Erian: I don't think we're at 'a Lehman moment' with China's Evergrande