HONG KONG, Dec 4 (IFR) - Asian credits traded on a weak note
but the primary market was still active with two live trades in
the market indicating that funds are still ready to put money to
work as long as there is a decent pick up.
However the market weakness affected the recently printed
new issues. The CDB Leasing 10-year bonds were around T+155bp,
2bp wider than yesterday's close but still much better than the
T+170bp pricing last week.
"There is a sell-off across the new issues with certain
large accounts consolidating their positions for the year," said
a Singapore-based trader.
However the New Shui On perps managed to remain above water.
The Chinese property developer yesterday printed USD 500mm at
10.125%/par late yesterday.
The bonds went as high as 100.25 before trading back down to
the 99.625 area but PB demand pushed the bonds back to the
China Cosco's 10-year bonds also held up ending the day
tighter again at T+219bp, from T+225bp quoted yesterday, and
much tighter than the T+250bp reoffer printed last week.
Olam bonds gained some ground this morning after the
Singapore commodities trader announced a rights issue late last
evening. However, fast money accounts came in to take profit on
positions and hence pushed the bonds back to yesterday's Asian
end of day levels. The US dollar bonds maturing in 2017 were
quoted around 90.
Sovereign CDS spreads were around 2-5bp wider and low beta
sovereigns like Korea and China were underperforming. Sovereign
cash bonds were also 0.25-0.5points weaker across the board. The
itraxx Asia IG index was around 109bp
New issues were back in the market on Tuesday after Shui
On's success with its rare unrated perpetual bond from a Chinese
property developer. Keppel Land was marketing 7-yr bonds at
T+235bp while Citic Pacific was tapping its 2023 bonds for an