Sell-off in debut triggers pricing dispute

crash volatility px230
By Rev Hui
28 Apr 2016’s inaugural outing in the international bond market could not have veered any further from expectations when the notes tanked in the secondary market. An overzealous pricing strategy was the main culprit for the poor performance, but divisive credit ratings for the Chinese company did not help either. Rev Hui reports.

Joint global co-ordinators Bank of America Merrill Lynch and UBS executed the deal last Friday, launching the Baa3/BBB- rated trade in the Asia open, with the five year marketed at 215bp over US Treasuries and the 10 year at 245bp over.

Those on the deal said the bookbuilding process ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial