2012 has not been a watershed year for high-yield primary issuance. On the face of it, investors are searching for yield, as rates hover around all-time lows, which theoretically ought to lead to demand. This has proven true in the secondary markets, with high-yield bonds posting strong gains since the start of the year.
However, the high-yield primary market is full of false starts and, at present, is clearly open only to select names, as reflected by the fate of China Hongqiao and Xac Bank this week.
The leads for China Hongqiao Barclays, Credit Suisse and J.P. Morgan went out with whispers for the five-year bond...
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