High-Yield Dim Sum Bonds Offer ‘Attractive’ Value, BOCI Says
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Higher-yielding Dim Sum bonds are a good bet following a recent sell-off that was driven by concern some issuers will struggle to pay their debt, according to BOC International Holdings Ltd.
Yuan-denominated notes sold in Hong Kong by units of Intime Department Store Group Co., China Shanshui Cement Group Ltd., Zhongsheng Group Holdings Ltd., OCT International Travel Service Co. and Hainan Airlines Co. are trading at deep discounts and offer “attractive risk-reward potential,” Steve Wang, BOC International’s head of fixed-income research, wrote in a report today. The bonds yielded 7.6 percent to 10.9 percent, according to BOC International, a unit of China’s fourth-largest bank.