Loans and High Yield

The sterling high yield market is set to start 2018 in shape, with investors and bankers expecting strong supply and demand. Pure Gym, the UK low cost gym operator, could be one of its first issuers.

China Logistics Property Holdings Co (CNLP) grabbed $100m on Friday from its second tap of a bond sold earlier this year.

Three Asian issuers, China Fortune Land Development Co, Luso International Banking and Shandong Hi-Speed Group Co, sold their inaugural bonds on Thursday, taking home $1.15bn between them.

China Logistics Property Holdings Co (CNLP) is tapping its outstanding three year Reg S bond for a second time, aiming to raise another $100m on Friday.

All-time low funding costs have sparked record gross issuance of leveraged finance debt in Europe this year, including a stream of multi-billion sized deals. More are coming, market participants say, and leveraged loan demand will be key for them.

The US high yield market has enjoyed another steady week of new issuance, but not all borrowers have come through unscathed — and weak earnings reports have caused turbulence in the secondary market for some names.

Leveraged loan investors are still at the table in a week many expected to be quiet. Double-B rated borrowers like Nomad Foods, the UK frozen food producer, found strong demand after slashing margins and selling add-ons.

Chinese local government financing vehicles Huzhou City Investment Development Group Co and Urumqi Gaoxin Investment and Development Group Co brought home a combined $500m on Wednesday as issuers seal last-minute deals before the end of the year.

China New Higher Education Group has become the latest of a string of companies from the education sector to access the offshore loan market for funds. While Chinese education firms have mostly been well received by banks, market observers cautioned against drawing broad-brush conclusions. Reputable schools with scale will still be a top pick for lenders, while their lesser-known peers may find frostier conditions. Shruti Chaturvedi reports.

Asian bond volumes soared this year, breaking records with $350bn of issuance. Can 2018 possibly be any better? Addison Gong attempts to find out.

Guirenniao Co was forced to pull its dollar bond on Tuesday as a result of unfavourable market conditions, as thinning liquidity in Asia at the year end took a toll on the issuer.

Shandong Hi-Speed Group Co (SDHS) and China Fortune Land Development Co are both taking bids for unrated three year dollar bonds on Thursday.