HONG KONG, Sept 13 (IFR) - Asian credit markets were firmer on Wednesday supported by healthy inflows. New issues attracted most attention with Chinese property developer Sino-Ocean Group’s notes among the strongest performers.
“The market remained constructive and the liquidity level was good, supporting active primary deals,” said a Hong Kong-based credit trader.
He noted that most of the Chinese deals were priced rather tightly this week, especially Bank of Qingdao’s Additional Tier 1 securities.
“Relying on strong support from relationship investors, the bank priced the deal very aggressively,” he said.
The Asia ex-Japan iTraxx investment-grade index was 1bp tighter at 75bp/76bp.
ABC International’s 2020s gained about ten cents.
Bank of Qingdao’s unrated AT1 were seen slightly above par, mainly shored up by Chinese bidders. The lender printed the perpetual non-call five notes at par to yield 5.5% on Tuesday, raising US$1.203bn.
Sino-Ocean Group Holding’s perpetual non-call five securities rallied about a quarter of a point to 99.80 in cash price on demand from private bank accounts, according to traders.
Hyundai Capital Services’ 3.0% 2022s were spotted 1bp tighter and its 2027s 3bp tighter.
Reporting by Ina Zhou; Editing by Vincent Baby