BlackRock, UBS Among Funds With Exposure to Defaulter Sunac

Institutional investors including BlackRock Inc. and UBS Group AG are set to become key players in the latest test of global bondholders’ negotiating power when Chinese companies run into trouble.

The two firms are among the five-largest holders of dollar bonds sold by Sunac China Holdings Ltd., the latest property firm to default, according to Bloomberg-compiled data based on filings as recent as mid-May. BlackRock and UBS declined to comment.

Based on recent filings, other holders of Sunac’s offshore debt have included HSBC Holdings Plc, Allianz SE’s Pacific Management Investment Co. and Ashmore Group Plc. The ...