January 18, 2017 / 8:16 AM / 8 months ago

ASIA CREDIT CLOSE: Credits see active trading; GLP underperforms

HONG KONG, Jan 18 (IFR) - There was active trading in Asian credit markets on Wednesday as a string of new bonds continued to grab the attention of investors.

“The market was doing well today with two-way flows. Particularly active were real money buyers,” said a Hong Kong-based investment-grade trader.

He noted that investors tended to prefer new issues and existing benchmark names with bonds at tenors of 5 and 10 years.

The Asia ex-Japan iTraxx investment grade index was little changed at 115.50bp/117.16bp.

China Development Bank’s new multi-tranche offerings were popular with PRC investors in the secondary market, the trader noted.

The policy bank’s five-year US dollar tranche was spotted 2bp tighter, while the other US dollar tranches were seen around reoffer levels.

Another high-yield bond trader said new issues from mainland property developers drew a wide range of investors with China Aoyuan’s new 2020s seen up 50 cents. However, trading in notes of Chinese local government financing vehicles lacked momentum.

Global Logistic Properties’ 2025s underperformed the market, having announced earlier this month that it was in preliminary discussions with various parties regarding a possible sale of the company. GLP’s notes were bid at 92.25, according to Tradeweb.

Reporting by Ina Zhou; editing by Dharsan Singh

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