Mainland developer ends junk bond drought

Central China Real Estate sells Asia's first junk bond for a month as concerns around the near-collapse of Kaisa recede and as cash-rich investors put money back to work.

Cash-rich emerging market investors are ready to put money back to work in the high-yield space in the second quarter as Chinese property market concerns decline, fixed income experts say.

Recovering risk appetite was on show as the first junk bond in a month hit the market on Tuesday. Rated Ba3BB-, Central China Real Estate launched a $300 million five-year bond that is callable in year three at a yield of 8.75%, 37.5 basis points tighter than its initial price guidance area, according to a term sheet seen by FinanceAsia

The deal also received overwhelming orders from regional investors, with books...

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