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Kaisa Is Next Worry for China Bond Traders After Rocky Month

  • Deadline for Kaisa bond exchange offer ends on Thursday
  • Index of China junk dollar bond prices stabilized in November
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WATCH: The newfound stability in Chinese dollar bonds will be tested this week. Rebecca Choong Wilkins reports.Source: Bloomberg
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The newfound stability in Chinese dollar bonds will be tested this week as one of the market’s largest issuers announces whether creditors agreed to a debt swap designed to avert default.

Kaisa Group Holdings Ltd.’s offer to exchange its $400 million of dollar notes maturing Dec. 7 for new ones due 18 months later expires at 4 p.m. London time on Thursday. If the offer -- which requires a 95% approval rate -- fails to win support, the struggling firm has said it may not be able to repay bonds and could consider a debt restructuring.