The difficulties faced by Far East Consortium and China Aoyuan suggest that investors are clearly still selective on high-yield and unrated credits.
Far East, an unrated property developer, had gone out with guidance for its five-year dollar bond at 5.5% and, according to sources, was expected to price on Friday evening.
That did not happen, however, and it appeared as though the deal was still struggling on Monday. The leads either could not be reached or would not comment on the deal, but feedback from investors suggested that they were not very keen.
“The book is said to be covered for a deal size of $200 million... but I heard that many...