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High yield issuers may be worried about market access, but some do not see them losing it
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Chinese high yield property bonds have been battered in the primary and secondary markets for much of 2018. Many issuers have been forced to steer clear of the market, fearing expensive pricing at best and failed deals at worst. But regulatory changes in China’s domestic market are starting to have an impact offshore, giving real estate companies the vote of confidence they have been waiting for. Morgan Davis reports.
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China Fortune Land Co and Sunac China Holdings have closed new dollar bonds, following a pair of successful taps that proved the market is returning to form.
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The flow of primary investment grade issuance in Europe has ground to a near halt, with only one new issue of decent size this week from Connect Plus. The focus for investors in on September and the European Central Bank’s strategy for the rest of the year.
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Investors in the European leveraged finance markets speaking to GlobalCapital said that, while issuance is lagging behind 2017's figures for the period, there is appetite for an increase in supply.
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Ceva Logistics and Promontoria, a Cerberus issuing vehicle, announced new bonds in the European high yield market this week, with investors appearing more willing to add risk.
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Chinese developer Yuzhou Properties has followed the success of fellow property company Agile Group Holdings by tapping its existing bonds. While high yield issuers have struggled in recent weeks, improving investor sentiment is offering some high yield borrowers fund raising opportunities.