High yields keep Asia credit open

摘要

A flurry of deals from high-yield Chinese property developers has kept the Asian credit markets open, even as volatility keeps many global funds and investment-grade issuers sidelined. Five of last week's 10 US dollar issues from Asia came from Chinese real estate firms, raising a combined US$1.26bn. Among those, SINIC HOLDINGS printed a US$280m 364-day debut note on a final order book of more than US$lbn and LVGEM(CHINA) REAL ESTATE INVESTMENT raised US$450m from a new money issue alongside an exchange offer. "It was not as super hot as the trade we did for a different Chinese property developer a couple of weeks ago, but we felt confident that the deal would be successful as seen from the exchange success rate of over 50%," said a banker on the LVGEM deal. The global spread of the coronavirus prompted continued volatility in equities and rates last week, with the yield on the benchmark 10-year Treasury dropping below 1% for the first time after an emergency 50bp cut to the Federal Reserve's policy rate.