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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