Neuberger Bets on China’s Battered Property Debt (1)

Fund managers at Neuberger Berman Group LLC are getting behind a recovery in China’s battered property market, arguing that there’s value in debt shunned by many investors.

The US investment firm has been snapping up the bonds of China’s real estate developers on signs of stability and pledges of support by the Chinese government, which helped spark a crisis five years ago when it restricted the amount of leverage in the industry.

“We are beginning to see opportunities in Chinese property,” said Nish Popat, a senior portfolio manager in Neuberger Berman’s emerging markets corporate debt team.

The New York-headquartered ...