The pricing on Alibaba’s bonds did not reflect a China risk premium in our view, and was priced more like a US credit, given the solid demand from the US investor base and hype around the IPO.

Raymond Lee

Categorized in : Business

We prefer to allocate our Chinese exposure to opportunities with better relative value like China National Petroleum Corporation, a AA rated government owned SOE, which priced their three year bonds almost 40bp wider versus Alibaba.