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China Builder Bond Sales Hit Record Amid Asian Junk Love: Chart

Dollar-debt sales by Chinese property developers have been on a tear, with issuance surging to a record $11.9 billion this year, aided by a blistering jump in junk-rated offerings. Investors’ love affair with builder bonds has driven Asian junk notes to a total return of 4.5 percent for 2019, erasing last year’s losses, according to ICE BofAML index data. “The real estate issuers are riding on the very positive market sentiment as a result of a more dovish Fed and possible deal coming out of U.S. and China,” said Chen Yi, head of global capital markets at Haitong International Securities.