Investors cautious on Cinda’s bond debut

The flurry of Chinese bond supply and potential rise in onshore bad loans could impair the secondary market performance of the asset management firm’s new bond.

China Cinda Asset Management, the Chinese bad debt management firm, raised an inaugural $1.5 billion dual-tranche bond on Wednesday but the notes have been trading flat or poorly in the secondary market as a result of oversupply from the mainland space and potential rise in onshore bad debt.

According to Dealogic data, Chinese borrowers account for 46.2% of total Asia ex-Japan issuance, which currently stands at $78.9 billion year-to-date. This is an increase from the previous year’s 38.2% out of $73.4 billion during the same period.

“The supply is a lot and, as a result, we will see more spread dispersion between Chinese credits within the next...

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