SINGAPORE, Oct 20 (IFR) - Asian credits were steady in fairly constructive markets, despite the backdrop of political uncertainties in Spain.
A flat equity market overnight in the United States provided little impetus for bullish sentiment in Asia, although the underlying tone remained supportive.
“The market appears to be taking a breather and deals are still getting done, but, on closer examination, these are not exactly huge and are more clubbish,” said one DCM syndicate banker.
“Investors are taking on risks, but on a very selective and sensible basis.”
Among new bonds priced on Thursday, those of Chinese credits Zhongrong Xinda and China Merchants Bank were firmer in secondary markets.
Zhongrong’s 7.25% 2019s, rated BB- and priced at par, were seen at 100.3, while CMB’s AT1 notes, rated BB-, were quoted at 100.3/100.4 against reoffer at par.
In contrast, GMR Hyderabad’s 4.25% 2027s, rated Ba1/BB+/BB+, underperformed today.
The notes, priced at par yesterday, were seen slightly below par, partly because of the sharp tightening in final yield from an initial guidance of 4.625%. CreditSights had put the bond’s fair value at 4.9%, well above the final yield.
In the investment-grade segment, Kia Motors’ dual-tranche notes were flat to reoffer levels.
The 3% 2023s, priced on Wednesday at 120bp over US Treasuries, were quoted at 120.7bp/119bp, while the 3.5% 2027s, priced at 125bp, tightened to 121bp/118bp.
Reporting by Kit Yin Boey; Editing by Dharsan Singh