Macau’s casinos once seemed to have a license to generate cash. They are now being squeezed by a worsening slowdown in Chinese tourism—and their bond prices are reeling as a result.
Prices of dollar bonds from Wynn Macau have tumbled to as low as 68 cents on the dollar, levels more commonly associated with distressed debt. A bond from MGM China Holdings that matures in 2027 was at about 76.6 cents on the dollar Wednesday, according to FactSet. Casino bonds that mature in 2024 are yielding more than 15%.