West looks East for value
* Western participation in Asian deals rises
* Analysts see little upside for European and US credit
* Total return to date has already beaten full-year targets
By Christopher Langner
SINGAPORE, April 17 (IFR) - The high returns in the European and US credit markets of late are driving investors back to Asia in search of better yields and relative value.
The renewed demand is supporting an issuance spurt, which promises to turn April into one of the busiest months of the year. As of April 17, the month's tally was at US$15.9bn, lower only than January's US$20.7bn.
Portfolio managers and analysts are attributing the burst in activity to the high returns year to date of credits in Europe and the US. The situation has left investors with few options but to search again for yields and upside in emerging markets, especially in Asia, widely seen as one of the more resilient regions within the asset class.
Traders have reported increased interest in Asia from Western asset managers. Deals this month have also shown a stronger participation of Western accounts.
About 60% of a US$200m bond from Indonesian textiles company Sri Rejeki on Tuesday sold to US and Europe. Asian accounts, meanwhile, had dominated the last large offering from an Indonesian credit, the US$225m five-year from real-estate company Alam Synergy. Investors from the region bought 72% of the bonds. Continuación...