High-yield falters as China Hongqiao, Xac Bank cancel deals

China Hongqiao and Xac Bank call off their dollar bond transactions, while China South City goes silent on its deal.

High-yield falters as China Hongqiao, Xac Bank cancel deals
An aluminium smelter run by China Hongqiao, which has pulled its bond deal

2012 has not been a watershed year for high-yield primary issuance. On the face of it, investors are searching for yield, as rates hover around all-time lows, which theoretically ought to lead to demand. This has proven true in the secondary markets, with high-yield bonds posting strong gains since the start of the year.

However, the high-yield primary market is full of false starts and, at present, is clearly open only to select names, as...

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