Skip to main content

Issuance of equity-linked instruments has surged. Notably, a Chinese convertible bond deal had more than $1 trillion in demand.

The Financial Times reported Chinese Bank Raises More than $7 Billion with Record Convertible Bond.

Bit of Advice

Michael Pettis at China Financial Markets has this bit of advice:

Scroll to Continue


"This stuff may feel like [cheap] equity, but it’s always at the worst possible time that you discover that it is really debt."

I took the liberty of adding the word "cheap".

Seems appropriate given the massive over-subscription at world record levels.

Mike "Mish" Shedlock