ASIA CREDIT CLOSE: Asian HY credit marginally weaker as supply hits market

SINGAPORE, March 1 (IFR) - New high-yield bonds slipped on weak market sentiment following overnight declines in the US equity markets. Recent supply of high-yield notes in Asia also dampened the performances of new bonds, said a trader.

Among the bonds that priced yesterday, Agile Group’s 6.875% perpetual dropped to 99.65/99.75 from a reoffer at par, probably on worries that the Chinese company could sell another perpetual again this year to refinance a US$700m junior perp.

Logan Property’s 6.375% 2021s eased to 99.75/99.85 after pricing at par yesterday.

The Chinese company has been expanding its portolio to take advantage of the booming property market in Shenzhen, but this has prompted Lucror Analytics to raise concerns over the fast pace of Logan’s aggressive debt-funded expansion.

High-grade credit Clifford Capital however outperformed as its 3.38% 2028s, with a guarantee from the government of Singapore, tightened to 47bp/45bp over US Treasuries after pricing yesterday at 49bp.

Asian credit spread narrowed with the iTraxx Asia ex-Japan IG index pulling in 3bp to 68bp/69bp.

March 1, 2018, 16:38:00 GMT

By Kit Yin Boey