Contrarian bond investors are hoping to take advantage of Wanda Group’s recent financial and political difficulties, betting that downside risks are containable and relatively short-term.
“There are always political shades of grey when it comes to emerging markets investment,” one US-based fixed-income fund manager told FinanceAsia. “Do we freak out No. But we hope others freak out because we’re investing for the long term.”
This high-risk strategy comes at a time when the group’s bond prices have been on a volatile ride thanks to heightened regulatory uncertainty in China where the government has been cracking down on the debt-driven acquisition strategies of...
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