Evergrande sends shockwaves across bond market

Chinese property sector dollar bonds came under massive pressure in the secondary market as Evergrande raised $1.8 billion in a new deal which priced at a significant premium to its outstanding bonds.

Evergrande sends shockwaves across bond market

China Evergrande Group caused a massive selloff in dollar bonds out of the Chinese property sector on Tuesday after the debt-laden developer took itself to the market to raise $1.8 billion from a triple-tranche bond offering that priced at a hefty premium to its existing paper.

Bond traders said that BB1B rated Evergrande’s outstanding bonds were also hit by the new issue. They traded down some 160bp to 230bp during Asian trading...

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