High-yield bonds falter

High-yield falters as China Hongqiao, Xac Bank cancel deals

China Hongqiao and Xac Bank call off their dollar bond transactions, while China South City goes silent on its deal.
<div style="text-align: left;">
An aluminium smelter run by China Hongqiao, which has pulled its bond deal
</div>
<div style="text-align: left;"> An aluminium smelter run by China Hongqiao, which has pulled its bond deal </div>

2012 has not been a watershed year for high-yield primary issuance. On the face of it, investors are searching for yield, as rates hover around all-time lows, which theoretically ought to lead to demand. This has proven true in the secondary markets, with high-yield bonds posting strong gains since the start of the year.

However, the high-yield primary market is full of false starts and, at present, is clearly open only to select names, as reflected by the fate of China Hongqiao and Xac Bank this week.

The leads for China Hongqiao Barclays, Credit Suisse and J.P. Morgan went out with whispers for the five-year bond...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222