China high-grade corp dollar bonds — bargain

Investors see attractive value in Chinese corporate issuers’ US dollar bonds, especially from the investment-grade space, as onshore credit conditions ease.

China high-grade corp dollar bonds — bargain

The US Federal Reserve’s dovish stance and European Central Bank monetary easing have not only compressed their regions’ corporate credit spreads but also those in Asia, creating pockets of value.

Since the summer of 2013, corporate credit spreads of US dollar bonds issued by investment-grade Chinese issuers have underperformed against their US and European peers.

A few domestic factors contributed to this phenomenon, including China’s struggle with shadow banking, mounting local government...

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