Road King digs potential new pothole for investors

The Chinese infrastructure developer brings its second fixed-for-life perpetual of the year and gets a thumbs up from investors, seemingly oblivious to interest rate risks.

China's Road King Infrastructure proved that fixed-for-life perpetuals have not yet come to the end of the road following the completion of its second deal this year.

The structure has provided a source of controversy for Asian bond markets where banks' syndicate desks are incentivised to get the best price for issuers who are, in turn, always on the lookout for the cheapest cost of funding. 

But questions remain whether many of the region's ever expanding ranks of newly minted bond investors really understand what they are buying and how it might trade if and when US interest rates go up.

Banks' fixed...

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