Wang Yizhi sensed an opening last July when local investors raced to dump the debt of Future Land Development, a Shanghai-based developer, after the arrest of its founder on sexual abuse charges.
Shortly after the scandal broke, Mr Wang, general manager of Raman Capital, bought four-year bonds for 88 cents on the dollar. Within weeks, he had sold them for 95 cents, after the developer put dozens of projects on sale to improve its cash flows.
“FLD is a strong company with a very low probability of default,” said Mr Wang, 35, at his office in Shanghai’s financial district. Shrugging off the founder’s arrest, he added: “We make money by having a better idea than our counterparties of how much risky bonds are worth.”
您已阅读15%（720字），剩余85%（4000字）包含更多重要信息，订阅以继续探索完整内容，并享受更多专属服务。