SINGAPORE, Nov 14 (IFR) - Asian credit markets were marked
by thin trading volumes with risk still trading on the weak
side, pushing players to the sidelines as they waited for
clearer signals as to where the markets were heading.
"People are trying to take profits in the long-dated space,"
said one trader, "but spreads are wide. No one wants to short
and no one wants to make a commitment."
The inaction left the credit spreads generally flat with the
Asia IG index unchanged at 125.5bp although a couple of trades
changed hands at 123bp and 126bp earlier in the day.
The skew towards IG names was evident in the deals that were
announced today with high-grade issuers emerging to take
advantage of the flight to safety.
They included the Republic of Indonesia finally launched its
global sukuk with a 10-year deal at a guidance of 3.5% area, but
had little impact on its outstanding bonds. The Islamic notes
4.00% due November 2018 were seen at 2.95% yield while the
conventional 2022s were quoted at 2.90%.
As a benchmark IG credit, Hutchison's new 2022s were gaining
more traction, seen at 171bp/170bp today, having pulled in from
China high-yield deals were not faring that well with Soho
China trending lower with its 2017s and 2022s quoted at 95
versus the issue price at par, while newly minted Gemdale
widened to 98.75 from a par reoffer.