ASIA CREDIT CLOSE: Citic Pacific steals spotlight in quiet trade

Thu Mar 27, 2014 5:18am EDT

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HONG KONG, March 27 (IFR) - Asian credit spreads largely held steady today, but Citic Pacific attracted most attention as its bonds traded up after parent Citic Group agreed to inject its main operating arm into the Hong Kong-listed subsidiary.

Today's session was a quiet one with the Asia ex-Japan iTraxx IG Index steady at yesterday's level of130bp/132bp.

However, Citic Pacific's perps were trading 5 points higher on the day at 105/106, whereas its 2023s were trading up at 104.5/105, up from 97 points before the news.

In the investment-grade credit segment, there was some buying in Chinese property names and this helped Wanda property bonds tighten 10bp-15bp.

The new China Construction Bank 3-year bonds were trading at 199bp/197bp over the two year US Treasury versus 205.7bp over the 2-year Treasury at reoffer.

"Overall, the market looks very quiet today and there is no news of imminent supply in the market," said a Hong Kong-based trader.

CDS levels were also steady on the day. Korea's 5-year CDS was at 59bp-62bp, China's was at 94bp-96bp, the Philippines' was at 106bp-112bp and Indonesia's was at 178bp-185bp.