August 4, 2017 / 9:21 AM / 7 months ago

ASIA CREDIT CLOSE: Mixed bag in high yield

HONG KONG, Aug 4 (IFR) - Asia’s high-yield credits put up a mixed showing in secondary trading, with some issuers failing to take advantage of investor demand for higher returns.

Shandong Ruyi’s B3/B- rated (Moody’s/S&P) US$200m 5NC3s were four points down since being issued late June. The notes were spotted at a price of 92.625 to yield 8.831% on Friday afternoon, according to Thomson Reuters data.

AMTD Group’s US$200m perpetual non-call three securities have also slipped from pricing at par on June 8, trading at a bid price of 92.50 to yield 10.7%.

Jingrui Holdings’ US$400m three-year bonds, rated Caa1 (Moody’s), have recovered steadily since the beginning of the month, having traded around 9.7% on July 3. The notes settled at 9.16% this afternoon.

Recent investment-grade issues were unchanged to a tad wider ahead of US jobs data out today. Non-farm payrolls were expected to have increased by 183,000 last month after surging by 222,000 in June, a Reuters survey of economists found.

A Singapore-based trader said he saw profit-taking after US Treasury yields tightened overnight.

The Asian IG iTraxx index was spotted at 80bp/81bp this afternoon, pulling back from Tuesday’s level, which was the tightest year to date, according to Thomson Reuters data.

Canara Bank’s US$400m five-year bonds tightened 2bp in the aftermarket.

Reporting by Frances Yoon; Editing by Dharsan Singh

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