China high yield real estate dominates dollar market with tightly priced deals

China_property_Adobe_25July
By Morgan Davis
06 Aug 2020

The resilience of China’s property market amid the Covid-19 pandemic is paying off for many of the country’s bond issuers, which have been able to reprice their secondary curves owing to strong investor support, writes Morgan Davis.

Between Monday and Thursday, six Chinese real estate companies sold $1.45bn of public dollar bonds.

Deal sizes remain modest, typically at $200m-$300m, but it has become common to see price tightening of 40bp or more during the bookbuilding process. Most bonds have priced well inside of fair value, on the back of solid demand ...

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