SINGAPORE, Feb 4 (IFR) - Asia's credit markets retained the
sour flavour left by last week's sell off in the perp and China
property sectors and there was no sign of a level of support
having been reached at which point value hunters look to go
Indeed, the Street is said to be net short of paper and
happy to remain that way in the face of a skittish Treasury
market and the "great rotation" which is underway out of fixed
income and into equities. The iTraxx IG index is looking to
close out the day at 116bp/118bp or 2bp wider.
The perp sector continues to nurse the wounds inflicted last
week, with only the Petron perp spared and last holding on to
end wrapped around par. The Cheung Kong perp is bid at 91, the
Agiles at 92 and the Reliance at 95.
Broadly speaking the China property sector is off between
2-3 points with the China SCE and Powerlong the worst rated
performers, having each shed around 4 points.
Unrated Champion Reit is a downside standout and remains
100bp back of where it priced over a fortnight ago, last
printing at a Treasuries plus 290bp bid. Perhaps in a
clear demonstration that heavy supply equals lower prices and
that the opposite applies, the ICTSI tap is holding its own at a
101.5 bid, with South East Asian non property credit also
holding up well thanks to the rarity value dynamic.
Regional offshore dollar sovereigns are tracking the US
Treasury market down and the long end of the Philippines and
Indonesia curves shed between a quarter to a half point during