Investors seek profit in Wanda sell-off

Banks may be curtailing their credit lines, but some bond investors view Wanda's recent rollercoaster ride as an opportunity to generate alpha.

Contrarian bond investors are hoping to take advantage of Wanda Group’s recent financial and political difficulties, betting that downside risks are containable and relatively short-term.

“There are always political shades of grey when it comes to emerging markets investment,” one US-based fixed-income fund manager told FinanceAsia. “Do we freak out No. But we hope others freak out because we’re investing for the long term.”

This high-risk strategy comes at a time when the group’s bond prices have been on a volatile ride thanks to heightened regulatory uncertainty in China where the government has been cracking down on the debt-driven acquisition strategies of...

¬ 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