Investors demand premium as issuers grasp for funds

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By Morgan Davis
17 Nov 2016

There’s a price to pay for market uncertainty, as Asian dollar bond issuers found out this week. While some had to offer hefty premiums to entice investors, Country Garden was forced to pull its deal on Wednesday following lukewarm demand. As investors turn cautious, market participants say that short-dated paper and juicy yields will be key for the next few weeks. Morgan Davis reports.

Country Garden launched a 10 put five deal on Wednesday with initial price guidance in the 5.625% area. Puts are rare in Asian bonds, the structure raised some questions and investor response was tepid, said a treasury official at another Chinese property developer.

In addition, the initial ...

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