Anchors up! Yuzhou sails to bond success

Some bond investors worry that anchor accounts hold too much sway with small deals. But Yuzhou Property is unlikely to complain.

Large investors have long dominated the IPOs of Chinese companies overseas. But some bond investors are complaining that a small handful of investors can have an equally large impact in the bond market.

They pointed to a recent bond from Chinese property developer Yuzhou Properties as an example. The company launched its bond with already-strong anchor orders from so-called friends and family investors.

Yuzhou returned to the market with a $250 million bond on Tuesday evening, pricing a seven year non-call four deal well through its secondary curve. The company was able to get away with a yield of 6% on its new issue far inside...

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