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This year’s bonds issuance of $8.76 billion has crossed the record set in 2013 with 6 months to spare. Amongst which, 7 deals with the ‘Fixed-for-life’ feature, which do not give issuers any incentive to redeem, have happened this year. All of which, came from greater China.
“A lot of times these bonds get sold by the name of the issuer and the headline yield of the bond,” cautions BlackRock. Investors should be prudent and examine the credit and structure of such ‘undated’ bonds.