HONG KONG : Asia's high-yield bond managers are largely staying away from new debt deals as turmoil in China's property sector has roiled the region's bond markets, even as they very cautiously buy into companies they think have been oversold in secondary markets.
"High yield has not performed well, everyone is more cautious and aware that if you take on a loss now, that is going to affect your full year performance," said a Hong Kong-based debt capital markets banker who declined to be named as he was not permitted to speak to media. An estimated US$3.9 billion worth of high-yield debt will mature before the end of the year, the data showed.
Despite a recent rebound in the prices of bonds issued by Chinese real estate developers, their yields remained at levels where refinancing is unfeasible for most high-yield developers, said Ek Pon Tay, emerging market debt senior portfolio manager at BNP Asset Management.