HONG KONG, Nov 20 (IFR) - Asian credits were in subdued mode with much of the activities dominated around Olam whose bonds bounced back in the afternoon after the sharp sell-off earlier in the day.
The Asia iTraxx IG Series 18 ended the day almost steady at 122bp/124bp with the five-year CDS for the Philippines and Indonesia quoted at 105 bp and 131 bp respectively.
Olam's US dollar 2017s were back to 89/93 after sliding down to a bottom of 83 in the morning, while the shorter-dated Singapore dollar bonds of one and two years have picked up to 94-96 after slipping to 88. The Singapore dollar perpetual fell to 84/88, where they still are, while the 2022s have picked up to 86/91.
There was also some selling seen in some Malaysian banking bonds, according to a trader, with the Maybank 2022s quoted at around T+283bp area bid.
Buying was seen around Tencent as its bonds tightened marginally after the new Baidu deal was announced. The Tencent 2016s were quoted around T+240bp area.
There was not much reaction in the Longfor bonds, despite concerns that the change of control clause would be triggered after some local press reports said that Longfor's Chairwoman Wu Yajun was recently divorced from her husband Cai Kui. The 2019s were quoted around par.
"We see the risk of triggering the "Change of Control" put and the impact on Longfor as minimal," a Deutsche Bank report said.