Maldives and ESR debut high-yield notes

The warehouse operator and the government of the island nation fail to make a splash as cautious investors wait on US jobs data and a likely June rate hike.

A pair of first-time issuers tapped the high-yield bond market on Wednesday, with warehouse and distribution centre operator ESR selling a $100 million unrated perpetual bond and the Republic of Maldives raising $200 million from a five-year note.

The demand for the two Reg S offering was tepid, as investors turned cautious ahead of the next meeting of US Federal Reserve policymakers in mid-June. The prospect of the US central bank raising short-term interest rates at its June meeting has jumped to over 90% from about 50% two months ago, according to CME FedWatch.

“Yield on 10-year US Treasuries dropped below 2.3% as investors look ahead...

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