PTT, Thailand's largest integrated petroleum company, made its bond market debut on Thursday pricing a $400 million 10-year deal via Citigroup, Deutsche Bank and JPMorgan. The Baa1BBB sovereign rated deal was priced at 99.121% on a coupon of 5.75% to yield 5.867%. This equated to 138bp over Treasuries, or 90bp over Libor.
However, the stand-out aspect of the transaction was the unprecedented tightening it experienced once it broke syndicate. Unsurprisingly non-syndicate banks concluded the deal had been misspriced after it contracted 16bp to a bid level of 122bp during Asian trading hours on Friday.
This rapid squeeze followed severe scale backs in allocations after...
