January 07, 2014 | Cbonds
The bond of property developer is being offered to yield 8.75%, while the company, rated Ba3/BB—/BB, has an outstanding bond due in January 2020 that is bid at 8.8%. Given that the one-year extension is worth 25bp for the Treasury curve alone, one analyst argued that fair value for the new bond was closer to 8.5%.
Yet, investors are sensitive. One portfolio manager said that at 8.75%, R&F is still interesting, but if it tightens by 20bp, as has become the norm for heavily demanded bonds, “it will start looking expensive”.
Company: Guangzhou R&F Properties
|Full company name||Guangzhou R&F Properties Co Ltd|
|Country of risk||China|
|Country of registration||China|
|Industry||Construction and development|