SINGAPORE, Nov 5 (IFR) - Asia's secondary credit market was
characterized by thin trading and illiquidity, with few players
willing to put on new bets ahead of tomorrow's US presidential
There was a slightly weaker tone despite solid non-farm
payroll data released on Friday, with the Series 18 iTraxx index
out by 1bp to a 116bp mid.
Betting websites are calling for an Obama victory tomorrow,
something which might prompt a short-term selloff given the
general thinking that he might be challenged in dealing with the
looking US fiscal cliff.
The focus remains on the primary market, with Hutch's
planned 5 and 10-year Global attracting solid demand north of
USD4bn and the pricing outcome likely to set the tone over the
Signs remain of resistance at the tight levels which have
been put on recent new deals, with last week's 5 NC 3 and 10 NC
5 print for Soho China bid down at 99.1 and 99.55 respectively.
Still, with USD25bn printing in the US market over last Thursday
and Friday and funds continuing to flow into to debt funds, the
market appears to remain in a solid underlying state.
With that creating something of a headwind for the China
property sector it will be interesting to see how Deutsche and
HSBC go about pricing a planned trade for developer China SCE. A
likely comp is the Yuzhou 2017, which was last at the 11.2%
mark, having priced last month at 11.75%.
In the meantime there has been some two-way flow in the Bumi
due 2017s, which added a point today to 77 bid on speculation of
a counter offer for the company from Nat Rothschild.
The price gain follows a two point loss on the paper last
week, partly as a result of ongoing rumours of financial
mismanagement at the company and partly as the result of poor
third quarter performance in the Indonesian coal sector. This
hurt the Adaro 2019s which lost a half to 110.5, while the Berau
2017s are unchanged.