SINGAPORE, Feb 9 (IFR) - Chinese property credits outperformed in the Asian secondary market, gaining a quarter to half a point today.
The strong performance helped lift China Singyes Solar’s newly priced 7.95% 2019s by 1.0-1.5 points from reoffer price at par.
“Some profit-taking is seeping in, but the tone is very constructive - the whole property segment is supported by reports that an analyst on the equity side had upgraded the entire sector,” said one high-yield trader.
The positive sentiment is timely for Future Land’s ongoing marketing of US$350m 3-year bonds at price guidance of 5.625%.
The yield curve of the Republic of Indonesia received a boost from Moody’s upgrade of its outlook on the sovereign to positive.
Cash prices rose half a point to 1 point, but came off a touch in the afternoon. The RoI’s 5.25% 2047s, priced in early December at a reoffer at 99.246, was quoted at 107.2/107.8.
However, the feel-good sentiment did not rub off on Pakuwon Jati’s 2024s, which priced yesterday at par with a yield of 5%. The bonds, perceived to have been priced too tightly, were quoted at slightly below par.
Asian credit spreads were flat with the iTraxx Asia investment-grade index at 107bp/109bp.
Indonesia’s outlook upgrade helped tightened its 5-year CDS by 7bp in the morning to 135bp/139bp, but gave up some gains mid-afternoon to 137bp/141bp. (Reporting by Kit Yin Boey; editing by Dharsan Singh)