Troubled real estate firm China Fortune Land Development Co. defaulted on a $530 million dollar bond due Sunday, and some holders said they failed to receive payment on a 2 billion yuan ($309 million) bond which matured Wednesday. Separately, local government-backed Chongqing Energy Investment Group Co. has failed to repay 915 million yuan of commercial bills due Monday, according to a person familiar with the matter who cited a company notice sent to a creditor committee.
âThe credit events at Chongqing Energy and China Fortune Land Development are unlikely to create contagion risks that spread beyond the individual provinces where these firms are most exposed,â according to Dan Wang, a credit analyst at Bloomberg Intelligence. âFor Chongqing Energy, the systematic risk is manageable as this firm has been a weaker SOE in the local region for some time, with only one public dollar bond and no public onshore bonds outstanding.â
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TOKYO (Feb 9): Asian junk bonds are attracting more bullish calls from money managers willing to navigate risks in the region for the juiciest yield pick-up over US peers in nearly a decade. Theyield gap on speculative-grade dollar bonds from Asia over similar securities from US borrowers has widened to about 295 basis points. That puts the premium closer to the 324 basis points touched in November that was the highest since 2011.
Asian Junk Bonds Offer Most Yield Over U.S. in Nearly a Decade
Finbarr Flynn, Bloomberg News BC-Asian-Junk-Bonds-Offer-Most-Yield-Over-US-in-Nearly-a-Decade , Finbarr Flynn
(Bloomberg) Asian junk bonds are attracting more bullish calls from money managers willing to navigate risks in the region for the juiciest yield pick-up over U.S. peers in nearly a decade.
The yield gap on speculative-grade dollar bonds from Asia over similar securities from U.S. borrowers has widened to about 295 basis points. That puts the premium closer to the 324 basis points touched in November that was the highest since 2011.
Strategists at UBS Group AG have said that junk debt from Asia is the best global credit opportunity in 2021. Analysts from Goldman Sachs Group Inc. have forecast that Asian high-yield notes may return 5.5% this year.
In this round-up, Ant Group and the Chinese regulators have reportedly agreed on a restructuring plan that will see the online payments firm transform into a financial holding company, and MSCI rolls out two new indices tracking new economy companies in China.