Investors Bet Big on Macau Casino Bonds Amidst Rebounding Revenues
Date: 2023-11-20 Author: Dima Zakharov Categories: CASINO, EVENTS
Bonds Over Shares:
As Macau's gambling and entertainment companies witness a resurgence in gross gaming revenue, investors from Asia and beyond are favoring bonds over shares. Despite the ongoing struggle of share prices to reach pre-pandemic levels, the perceived safety of Macau casino bonds has led to positive developments for major players like Sands China and Melco.
Safety in Bonds:
In the unpredictable landscape of post-pandemic recovery, many view Macau casino bonds as a safer investment compared to shares. Sands China's bonds received an investment-grade lift from S&P, while Melco's credit rating was upgraded to stable, reinforcing the attractiveness of bonds for risk-averse investors.
Additional Perks:
Apart from reduced risk, investors are drawn to other advantages offered by Macau casino bonds, including Asia's low default rates and the decreased overall supply in the bond market due to the departure of several Chinese firms.
Concessionaires Drop Claims:
In a surprising turn of events, five concessionaires who previously sought compensation from Suncity Group and Alvin Chau have dropped their claims. This decision follows Chau's imprisonment in October, where he received an 18-year sentence for involvement in various illicit activities, including fraud, criminal association, money laundering, and illegal gaming.
