Investors demand hefty premium from Qinghai LGFV

By Morgan Davis
19 Mar 2018

China’s Qinghai Provincial Investment Group Co was forced to pay up around 75bp in new issue premium to complete a $250m bond on Friday, as investors voiced their scepticism about the low rated issuer.

Last week’s market was rough for all high yield issuers, as nervous investors demanded hefty new issue premiums in the primary market. For instance, China’s —/B/B rated Xinyuan Real Estate Co paid up more than 60bp to close a $200m 9.875% two year deal.

“The market ...

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