ASIA CREDIT CLOSE: Quiet secondary trading on expectations of more primary activity

Mon Apr 14, 2014 5:28am EDT

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SINGAPORE, April 14 (IFR) - Secondary trading in the region was quiet today in anticipation of more primary bond offerings, as well as the Easter holiday, traders said.

Chinese internet company Tencent (A3/A-) began a roadshow today for a possible 144A/Reg S issue, Bank of Communications (A3/A-/A) mandated Bank of Communications, Hong Kong branch, UBS and Standard Chartered for a potential USD Reg S bond, while Poly Real Estate Group mandated Citic Securities International and HSBC for meetings with investors starting tomorrow, for a possible Reg S USD-denominated bond offering.

The high-yield market was 0.25-0.75 points down, relative to Friday with property names generally lower, but Citic Pacific bucked the trend to trade half a point higher across the curve on buying interest.

Citic Pacific sister company China Citic Bank's Additional Tier 1 bonds, priced last Thursday, saw continued trading, but the price was unchanged at offer-102.25. Its Tier 2 bonds had also received inquires, traders said.

No names stood out in the investment-grade segment, with the Asia ex-Japan IG iTraxx index widening 2bp from Friday's close to 124/125.5bp.

Indonesia 2044s were indicated slightly higher at around 111, but the yield is 3bp wider over Treasuries as Asian market lags behind these.

Philippine 2024s were indicated 0.125 points higher to 103.875/104.25, while the 2037bp at 110.25/110.50.

Sri Lanka's latest due 2019 were slightly above par at 100.75/101.125.

Lianting.tu@thomsonreuters.com

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