Kaisa Bonds are ‘Extremely Cheap,’ Hedge Fund BFAM’s Fuchs Says
- Bonds trading at spread 1,100 bps wider than comparables
- Kaisa is poster child for things that scare foreign investors
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Bonds of Kaisa Group Holdings Ltd., the first Chinese property developer to default on dollar-denominated debt, are "extremely cheap," said Benjamin Fuchs, founder of the $1.8 billion hedge fund firm BFAM Partners.
“Kaisa is really the poster child for everything that scares Western investors,” Fuchs said on Wednesday at the Sohn Conference Hong Kong 2016 presented by the Karen Leung Foundation, pointing to issues including regulatory and accounting problems.