HONG KONG, May 21 (IFR) - Asian credit spreads were largely steady as primary issuance took a break with the next batch of issuers still in the process of completing roadshows.
Citic Pacific's new NC5.5 year perp continued to perform well in the secondary market and was trading around 101 after it was tapped for an additional USD200m yesterday, following a USD800m issue last Tuesday.
Traders were, however, sceptical about the perps in the pipeline. Yanzhou Coal Mining Company and PTTEP are both meeting investors for potential hybrid deals.
"We are seeing a few perps on the pipeline. Perps are a harder and harder sell and are indicative of a toppy market," said a Singapore-based trader.
Other traders also said that investors were taking a step back to take another look at their portfolios after the record supply the market witnessed this year.
Traders said Indian banks were trading wider after the announcement of Syndicate Bank's roadshow and after S&P said on Friday that its outlook on India remained negative.
"High fiscal deficits and a heavy government debt burden remain the most significant constraints on our sovereign ratings on India," S&P said in the note.
The Itraxx IG index was mostly unchanged at yesterday's 101bp/103bp.