February 28, 2018 / 8:41 AM / 8 months ago

ASIA CREDIT CLOSE: Credits soft; new issues remain active

HONG KONG, Feb 28 (IFR) - Asian credit markets were soft on Wednesday as regional stock markets slumped on concerns over the pace of interest rate increases in the US.

Investment-grade credits in general widened by 1bp-2bp while high-yield names fell around 0.25 point, according to a Hong Kong-based trader.

Still, primary market remained active with five Asian issuers marketing new issues today and Chinese names still dominant.

The iTraxx Asia ex-Japan investment-grade index was spotted at 68.00/68.50, around 1bp tighter since China returned from the Lunar New Year holiday on February 22.

New issues priced overnight mostly traded weak.

Chinese property developer Tahoe Group’s 7.875% 2021s fell to 97.75/98.50, after a US$230m tap of the notes yesterday at 98.116 (for a yield of 8.625%).

Yuzhou Properties’ US$375m 6.375% 3-year non-call two bonds, priced at par, lost 0.125 point in cash price.

Newly priced bonds of Modern Land (China) and Guorui Properties were hovering at reoffer.

Modern Land priced US$350m 3-year Green bonds at par to yield 7.95% while Guorui sold US$250m 364-day notes at par to yield 10.20%.

China Resources Gas’s 4.50% 2022s were little changed and were quoted at 103.304/103.497 even though Moody’s today upgraded its issuer rating and senior unsecured debt rating to A3 from Baa1 on improved operating performance and credit metrics.

Reporting by Carol Chan; Editing by Vincent Baby

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