China Evergrande Group caused a massive selloff in dollar bonds out of the Chinese property sector on Tuesday after the debt-laden developer took itself to the market to raise $1.8 billion from a triple-tranche bond offering that priced at a hefty premium to its existing paper.
Bond traders said that BB1B rated Evergrande’s outstanding bonds were also hit by the new issue. They traded down some 160bp to 230bp during Asian trading hours on Tuesday and extended last week's losses.
Other single-B property names like China South City and Fantasia were among the major casualties, seeing their outstanding bonds shed as much as...
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