Default fears hurt first-time China issuers of US-dollar bonds

  • 📰 BusinessTimes
  • ⏱ Reading Time:
  • 50 sec. here
  • 2 min. at publisher
  • 📊 Qulity Score:
  • News: 23%
  • Publisher: 51%

CHINESE companies trying to sell US dollar bonds for the first time have been finding it a whole lot tougher lately. So tough that the number of debut issuers is down by almost half this quarter compared with the last one. Read more at The Business Times.

Singapore Headlines News

Singapore Latest News, Singapore Headlines

Sat, Sep 14, 2019 - 5:50 AM

"Issuers will have to do more to convince investors than before," said Roy Kwok, a partner and senior portfolio manager at DeepBlue Global Investment in Hong Kong. First-time borrowers are usually second or third-tier companies in their sector, adding to credit-profile concerns, he said.Buyers in the secondary market, too, are pressing for more, with yields on junk-rated Asian dollar bonds climbing since June.Much of the Asian junk market is accounted for by developers from China.

Investors are weighing the relatively poor performance of Chinese new issues and high-yield notes over the past two months, according to Thomas Wu, head of Asia fixed income at Pictet Wealth Management."Debut names would need a meaningful first-time issuance premium," he said. Even so, the depressed levels of global bond yields are bound to leave some funds eager, and a Federal Reserve interest rate cut next week could help open the door for greater risk taking.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 15. in SG
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

As trade talks loom, Chinese firms look into buying US farm goodsChina's Commerce Ministry said on Thursday that Chinese companies have started to inquire about prices for U.S. agricultural goods purchases, in a ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

As trade talks loom, Chinese firms look into buying US farm goodsBEIJING (REUTERS) - Chinese companies have started to inquire about prices for US agricultural goods purchases, Beijing said on Thursday (Sept 12), in a further sign of potential de-escalation in the bitter and protracted trade war between the world's two largest economies.. Read more at straitstimes.com.
Source: The Straits Times - 🏆 8. / 63 Read more »

US wants to make 'meaningful progress' in China trade talks: Treasury Secretary MnuchinWASHINGTON (AFP) - US trade negotiators want to make 'meaningful progress' in upcoming talks with China, Treasury Secretary Steven Mnuchin said on Thursday (Sept 12).. Read more at straitstimes.com.
Source: The Straits Times - 🏆 8. / 63 Read more »

China urges US to 'make efforts' on North KoreaChinese Foreign Minister Wang Yi called on the United States on Thursday to make efforts to resolve the North Korean nuclear issue, warning that ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

China says firms have started inquiring about US agriculture buysChina's Commerce Ministry said on Thursday that Chinese companies have started to inquire about prices for U.S. agricultural goods purchases, in a ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

China says firms have started inquiring about US agri buysChina's Commerce Ministry said on Thursday that Chinese companies have started to inquire about prices for U.S. agricultural goods purchases, in a ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »