SINGAPORE, May 28 (IFR) - Asian credits were holding steady today on a firm market tone. Equities in the region were in positive territory, while credit spreads tightened. The iTraxx Asia IG index narrowed 2bp-3bp to 109bp/111bp.
The trade volume was slightly deflated today, as opposed to yesterday’s hectic level, with a bit of profit-taking on the rallying bonds.
Despite the quieter trade, high-yield Logan Properties saw its newly minted 2019s rally to 101.375/101.875 after pricing at par last night.
Logan was the only issuer of US dollar bonds in Asia yesterday and its sole offering marked a return of Chinese property names since March.
Logan attracted a book of USD1.25bn, but printed just USD300m, resulting in the residual demand scrambling in the secondary markets to get bonds.
“It is not too bad a performance for Double B name and a Single B rated bond,” said one high-yield trader. “Fundamentally, the credit could be a bit shaky as it was only listed last year and does not have a long track record.”
Logan thrived on the back of a broad-based buying of BB corporate names in the market. That demand has fuelled Chinese credits in recent days, although buying of small lots today kept the high-yield credits broadly unchanged.
Maoye 2017s were quoted at 101/102 after pricing at par in mid-May, while Yingde Gas bounced to a handle of 106, following an April USD125m tap of its 8.125% due 2018 at 103.375.
The outperforming bonds also pulled up Chalco’s outstanding hybrids. The 6.25% senior perp notes were indicated at 100.625/100.875, while the 6.625% perps were at 102 area.