SINGAPORE, Jan 14 (IFR) - Asia's credit markets had a distinctly downbeat tone today following the issuance rampage which kicked off the new year, with DCM bankers of the opinion that the market has been due a correction for quite a while.
There is certainly a sense of indigestion in the secondary market, which is struggling to absorb a record level of issuance for the month, as issuers have rushed to frontload paper ahead of the Lunar New Year holiday and the looming US debt ceiling.
The underperformance today of late last week's issuance from Champion Reit and Agile, which brought a 10-year and a perp respectively seems to have spooked investors, and while there are deals on the road, no issuer has been able to pull the trigger so far today in Asia G3.
Agile was last quoted at 97 bid off a par reoffer, while Champion Reit was last bid at Treasuries plus 237bp versus last Thursday's plus 195bp reoffer. /p Still, the market has been subdued in terms of two-way flow and the iTraxx IG index is unchanged at 106bp mid.
And Friday's 5 NC 2 trade from Hong Kong Broadband has held its own in the downbeat circumstances, with the paper looking to close out at a 99.875 bid, versus a par reoffer, something of a result for an unrated name.