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)