The flood of property-related convertibles is not letting up despite signs that the market is getting somewhat saturated with this type of paper. But last nightÆs offering by New World Development did at least provide some diversified exposure for investors since the issuer was a Hong Hong-based bluechip developer as opposed to yet another Mainland-based mid-cap real estate company.
The deal will also be easy to hedge both with regard to the credit and the equity, making it interesting for both technical and outright investors.
The HK$6 billion $768 million CB has a seven-year maturity with no put, giving it an usually long effective life. While this is positive for the company in terms...
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