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ASIA CREDIT CLOSE-China Singyes rallies in constructive HY market
February 9, 2017 / 9:52 AM / 10 months ago

ASIA CREDIT CLOSE-China Singyes rallies in constructive HY market

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)

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