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