Ass Loon BETS BIG ON CHINESE DEBT. Addictive Gambler Just Like Husband!

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[h=1]REUTERS: SINGAPORE GIC BETS BIG ON CHINESE DEBT[/h]
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10 Jun 2014 - 8:43pm





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Singapore sovereign wealth fund GIC is making waves in the Asian debt markets with a series of unusually big investments in bonds from China.
According to market sources, in recent weeks, GIC has bought US$700m of unrated 4.7% bonds due 2019 from computer maker Lenovo, a US$400m 2019 private placement from property developer Vanke, and a HK$2bn (US$258m) 3.2% 2020 note from internet group Tencent Holdings.
Adding to the sudden increase in activity, the fund is said to have been behind the anchor order for the US$350m reopening of China Resources Land, as well as a big buyer in several other transactions.
The investments in unrated bonds and private placements mark a newly aggressive approach from GIC. It also contrasts with the liquidity-driven investment philosophy of other sovereign wealth funds, which typically prefer to invest taxpayers' money in high-rated and well-traded securities.
"A US$700m order for an unrated bond is a big thing for a sovereign wealth fund," said one banker.
Observers believe the shift in investment strategy marks a rebalancing of GIC's portfolio towards fixed-income assets and North Asia.

Read the rest of the article here: http://www.reuters.com/article/2014/06/06/singaporebondschina-idUSL3N0ON
 
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