July 12, 2017 / 9:20 AM / a month ago

ASIA CREDIT CLOSE: IG names hold on to gains

HONG KONG, July 12 (IFR) - Asia's investment-grade issues continued to receive strong support from investors even as global markets saw light trading ahead of US Federal Reserve chair Janet Yellen's testimony to Congress.

NongHyup's US$500m five-year notes kept its 6bp gain from yesterday after attracting US$1.3bn in orders for the A1/A+ (Moody's/S&P) rated notes. Japanese megabank SMFG's 2022s and 2027s were trading above par.

"There's a sense that amid broader volatility, there is a preference for IG," said a Hong Kong-based credit analyst.

"We've recommended that investors go up in quality and protect the portfolio. You're not really sacrificing much yield because higher-beta names have compressed so much."

The reception given to new high-yield issues from Central China Real Estate and Oceanwide Holdings showed there was no trouble digesting more Chinese property bonds.

CCRE's US$200m 6.0% 2018s were trading three quarters of a point higher, while Oceanwide Holdings' 363-day notes were spotted at a mid of 100.30, according to a Hong Kong-based trader.

Shimao Property Holdings's 5NC3s were trading almost a point higher since it added US$150m to its 4.75% 2022s.

Reporting by Frances Yoon; Editing by Vincent Baby

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