High yield dim sum hits new heights in supply surge

By Steven Gilmore
17 Jan 2014

Dim sum supply has had an explosive start to the year, with a torrent of deals from on and offshore issuers taking supply to four times what it was in the first two weeks of last year’s record six month run. But even more impressive is the appetite for yield, exemplified by Trade and Development Bank of Mongolia’s debut in the currency, which despite modest size signals the extent to which dim sum boasts a thriving high yield segment absent in any other Asian currency bond market, writes Steve Gilmore.

Trade and Development Bank of Mongolia sold its Rmb700m ($115m) dim sum debt on Tuesday, approaching investors with guidance in the 10.25% area and pricing the bond at the same level. The inaugural offering ended up well inside what the borrower would have paid for a similar deal ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial