June 26, 2014 / 9:37 AM / in 3 years

ASIA CREDIT CLOSE: Asian credits flat amid quiet markets

SINGAPORE, June 26 (IFR) - Asian credits were generally flat in the absence of a new catalyst to drive the markets. Sentiment was a little softer, despite a promising start following an overnight rebound on Wall Street.

Equities were slightly higher in the region with Hong Kong stocks rallying 1.45%. The gains were less in Korean and Japanese stocks, which closed 0.6% and 0.27% higher, respectively.

The iTraxx Asia IG index was unchanged at 99bp/101bp.

Cash markets were subdued, with little trade flowing. “There were private bankers adding Greenland, but not much trade in other things,” said one trader.

Greenland priced two tranches of 2019 and 2024 bonds to yield 285bp and 341.2bp over US Treasuries, respectively. In a muted market, the two issues softened marginally. The 2019s widened to 290bp, while the 2024s were flat at 341bp.

Surprisingly, high-yield Indonesian Pakuwon Jati continued to see bidding interest in the secondary after pricing 5-year bonds at par yesterday. The new 2019s priced at a cash price of 101.

“The secondary market in Asia has seen a bit of volatility this week on some profit-taking and noises from the global markets, but one thing is clear through all that, and that is people are still keen to buy into Asian bonds,” said one debt syndicate banker.

Other new issues were holding up. Kogas 2026s were indicated at 88bp/83bp, while Krung Thai Bank’s Tier 2 callable in 2019 held on to gains at 332bp/335bp. Hongqiao 2017s were quoted at 100.75.


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