Junk Bond Exit Quickens, Property Stocks Fall: Evergrande Update
This article is for subscribers only.
A pullback by some of the biggest investors in China’s junk property bonds accelerated last month, as firms cut holdings by around $1 billion in par value against the backdrop of a record selloff in global fixed income.
April saw many of the top 20 institutional investors including BlackRock Inc. reduce positions in China’s high yield dollar bond sector, led by Fidelity International Ltd., data compiled by Bloomberg show. Investment managers may have reallocated more of their funds to stronger developers while cutting positions in weaker and widely-held firms, Bloomberg Intelligence analysts Andrew Chan and Daniel Fan wrote in a report.