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ASIA CREDIT CLOSE: Recent bonds perform well as issuance slows
December 6, 2016 / 9:16 AM / 10 months ago

ASIA CREDIT CLOSE: Recent bonds perform well as issuance slows

SINGAPORE, Dec 6 (IFR) - Primary issuance has slowed, bar a trickle of bonds from Chinese local government funding vehicles, and the secondary market looked firmer in the reduced liquidity.

The Asia ex-Japan iTraxx investment-grade CDS index was 1bp tighter at 122bp/124bp, in line with a slight narrowing in U.S. Treasuries during the Asian session.

“Investors are reluctant to do anything extra as we head into December,” said a DCM banker.

Despite the perception of recent deals underperforming, many big trades from the past couple of weeks have traded well.

Indonesia’s recent 2022s were up a quarter of a point at 100.5 to yield 3.6%, and its 2027s made a similar gain to return to their reoffer price, yielding 4.4%. Its more sensitive 2047s gained half a point to 99.75, yielding just under 5.3%.

Studio City’s dual-tranche dollar bonds have outperformed since pricing, and gained an eight of a point today.

The 2019s were seen at a cash price of 102.875 to yield 4.8%, having priced at par to yield 5.875%, while the 2021s were at 103.25 to yield 6.5%, from 7.25% originally.

Shinhan Bank’s Tier 2 notes were flat at 99.875, but still higher than the reoffer price of 99.5, while Chalieco’s Double B perpetuals were seen at 101.125, flat today, but up more than a point from reoffer. (Reporting by Daniel Stanton; editing by Dharsan Singh)

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