Wanda’s Dollar Bonds Down Over 4 Points after Investors Question Trust Loan Payments

Dollar bonds of Chinese real estate company Wanda Properties were down over 5% yesterday. Bloomberg reported that investors questioned the company regarding whether there had been any extensions or defaults on trust loans. The trust loan market is a key shadow banking sector of over $3bn where losses have mounted over the past year, related to the property sector. In response, Wanda Properties’ representatives said that they will keep repaying the trust loans and extending payments like it did last year on those typically sold to single institutional investors, as per sources. Wanda is one of the is the only issuer from the Chinese property sector that issued dollar bonds this year raising $400mn and $300mn in January and February respectively with coupons of 11%.

The new 11% 2025s and 11% 2026s were down by 4.5 points each to trade at 82.83 and 78.75, yielding 23.4% and 21.4% respectively.