SINGAPORE, May 8 (IFR) - The strong demand for Korean
credits in the sweet spot of five years continued to lift much
of the bonds from that country today.
"All the 2018s from the Korean names are being well bid in
the markets," said one Singapore-based trader. "Korean paper has
been underperforming in the last few weeks, and investors were
technically not long in these names, so there is room for the
credits to run up."
The demand helped KNOC's new securities. Its new 2018s,
which priced at 145bp last night, tightened to 131bp-135bp
range, while Korea Resources have rallied 10bp tighter from
Monday. Daegu Bank was indicated at 148bp, about 7bp tighter
The investor push into the five-year tenor has also boosted
CNOOC's recent 2018s, which have gone sub-100. The paper changed
hands at 95bp before settling at 98bp/99bp, far inside the issue
spread of 120bp over Treasuries. Another five-year bond from
Chinese property developer Yuexiu was quoted at 241bp/237bp.
The Petronas 2019s continued to ride on the positive
sentiment, after the dominant political party in Malaysia
returned to power, albeit at a reduced majority. The paper was
quoted at 134bp, some 15bp from Monday.
Hutchison's euro-denominated perps were up at
In general, the Asian credit markets gained along with all
other asset classes in the region. Stocks rallied across the
region with the Nikkei index ending 0.7% higher and the Hang
Seng index up by 0.8%.
Credit spreads narrowed about 1bp-2bp to 97bp/99bp. The
five-year CDS for the Philippines was at 80bp, while Indonesia
was at 125bp, hardly dented by S&P's downgrade of its outlook to
stable from positive. Traders described the move as