High Yield Corporate Bonds : Few And Far Between
Singaporeans are a suspicious lot. Give them a high yield, under subscribed issue and they will run. If you give them a low yield, over subscribed issue, its ok even if the bond tanks.
On this leisurely public holiday, I decided to dig up whatever 6% yielder I can find out there. The results are surprising, to me at least. There are not many bonds giving us 6% out there and I took the liberty of removing the 2 Lehman defaulted papers which presented some impossible 6000% yield. I also excluded the recent high yield issues that are highly illiquid.
Out of the 14 bonds, over a third are Olam and a handful of perps. Note Olam has the courtesy of Temasek’s stake while GIC owns a small share of Tata Steel.
I daresay I missed out some, like Ezra perpetual and the new issues in Hankore, Perisai and United Envirotech given the impossibility of obtaining reliable pricing. Let’s keep them at the back of our heads for now.
Yet somehow, I feel that this list should really be longer to include some potentially over valued issues, in my opinion. But if no one is really crying over it, including all the investors who had bought into Tata Steel and losing over 16% of their capital, I will rest my case.
hi tradehaven, good evening. Just wondering why cheung kong perp is not on your >6% yielder? I think at the moment, CK perp YTC is > 6%. Right?
Hi tradehaven, in the high yield area, there are several chinese developers in USD listed here over the last 2 years. Appreciate if you could list their prices and your comments too, thanks
Hi Peter,
Will do up something tomorrow but I do not have the entire list. I will just list the active ones.
My price indic shows its about 5.7%. 90/90.5 price.
Hi tradehaven, may I suggest a few for your kind consideration.
Shimao
Guangzhou RF(Caifu)
Shui on
Fantasia
Glorious
Powerlong
Central china
Evergrande
Country garden
Kaisa
Sunac
Futureland
Yuzhou
Thanks
I put out a list on the latest Bonds In Conversation.
Hope you will find the information useful.