Macao casino operators are attracting bond market attention.
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Although these companies generally issue low-rated, “high yield” bonds, they have regained creditworthiness as the Chinese administrative region’s tourist numbers recover. The trend partly reflects a shift of investment funds into Macao casino bonds amid operational uncertainties befalling Chinese real estate companies, which have had a significant presence in Asia’s high-yield bond market.
“Macau is on a brighter spot, as its recovery is on track,” Hong Kong asset manager Value Partners Group said in a report.
The comment is representative of the bullish views being expressed by investors.
