June 27, 2017 / 9:37 AM / 5 months ago

ASIA CREDIT CLOSE: Kaisa back above par, as market absorbs HY supply

SINGAPORE, June 27 (IFR) - The Asian credit market showed signs of recovering from the huge supply in China high-yield property bonds that priced last week.

“Evergrande is unchanged, but Kaisa is better,” said a credit trader. “Market conditions are pretty good, but not bullish.”

Evergrande’s 2025 bonds were quoted at a cash price of 98.375, having priced at par last week, while Kaisa Group’s new long-dated bonds were seen around 101.75-102.00. Shimao Property’s new 2022s were unchanged at a cash price of 100.375.

Baidu’s 2022 bonds tightened 3bp in spread terms to 122bp over Treasuries, after it mandated banks for a proposed US dollar bond offering.

Meanwhile, Swire Pacific’s 2022 bonds widened 2bp to Treasuries plus 92bp as it started marketing a new 7-year benchmark dollar issue.

The Asia ex-Japan iTraxx investment grade CDS index was flat at 84bp/85bp, with Chinese sovereign 5-year CDS quoted at 67bp.

Reporting by Daniel Stanton; Editing by Vincent Baby

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