Nan Fung prompts perp pile up

Hong Kong property developer's deal sees sector re-price. Is this the end of the road for fixed-for-life perpetuals?

Nan Fung prompts perp pile up

A $500 million fixed-for-life perpetual by Nan Fung International Holdings dropped sharply after it began trading on Tuesday in a sign investors may be starting to question the wisdom of structures, which leave them heavily exposed to duration risk. 

The Hong Kong property developer’s senior perpetual non-call three-year offering was priced at par on a coupon of 5.5%, but immediately dropped one point when it opened for trading.

In turn, it...

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