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:
"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