The disconnect between the rhetoric of Sino-US relations and reality was seen clearly last week with the People’s Republic of China’s barnstorming return to the 144a bond market after a 16-year absence.
The largest sovereign bond in Asia so far this year, the $6 billion four-tranche deal A1AA not only pushed China’s curve out to 30-years, demand was underpinned by significant interest from US investors.
“The deal illustrated unabated appetite by investors to add China exposure,” Ben Wang, director of debt origination at Deutsche Bank, said of the deal. The transaction built up and maintained the sovereign’s US dollar benchmark curve helping provide a reference...
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