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Why bond covenants matter

Wong Hong Wei
Wong Hong Wei • 11 min read
Why bond covenants matter
There is the temptation to overlook promises, but do not count on the odds to be always in your favour.
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Photo: Samuel Isaac Chua/The Edge Singapore

There is the temptation to overlook promises, but do not count on the odds to be always in your favour

Investors of China Huarong Asset Management’s (Huarong) offshore bonds were shaken in early April this year. Bond prices fell by nearly half due to the delay of the publication of Huarong’s annual report and a trading suspension imposed on April 1.

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