(Bloomberg) Double Haven Capital (Hong Kong), a credit hedge-fund firm that profited last year as most of the industry struggled to make money, is betting against Chinese high-yield bonds as many investors are seeing risks mount in this part of the market.
Chinese high-yield bonds have gotten expensive, and heavily indebted issuers throughout Asia need to refinance existing loans, Darryl Flint, chief investment officer of the Hong Kong-based hedge fund, wrote in a newsletter to investors. Double Haven, which has traded more than $10.7 billion of public and private Asian securities since 2011, said a wave of refinancing activity could also amplify price volatility.
