Future Land Development has raised a $350 million five-year bond, the first Chinese developer to do so in three weeks, supported by positive investor sentiment as onshore credit conditions improve.
Of late, China credit has outperformed and the high-yield space has been a beneficiary of the recent improvement in onshore credit conditions.
According to Morgan Stanley, bonds issued by Chinese property companies generated excess returns of 6.11% over the past two months, more than compensating for the negative excess returns of 2.03% that the asset class had generated until mid-May.
“The catalyst is a familiar one easier credit conditions,” Viktor Hjort, credit analyst...
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