Wednesday, April 25 (IFR) - Asian credit spreads tightened
marginally but the outcome of the US Fed meet and fresh supply
kept the rally in check.
Against the overall trend, India's rating outlook revision
to negative from stable hit Indian bonds causing them to widen
ICICI's 2020 bonds, for instance, gapped to a spread of
400bp over treasuries following the rating action.
Other sectors did not widen so much, but the bid-ask spread
on their bonds opened. The 2022 bonds from Reliance Industries,
for one, were quoted at 335bp/342bp over treasuries after the
announcement. In the morning they were at 335bp/325bp.
"There was much more focus on CNPC bonds today since CNOOC
is coming up with a fresh bond and there was some volatility
there," said a Singapore-based trader.
China's top offshore oil producer, CNOOC is in the market
with a two tranche deal that appears to offer a fair concession
to rival CNPC's bonds and to its own implied curve.
CNOOC has issued guidance of around 210bp over US Treasuries
for a 10-year dollar bond and 220bp-225bp for a 30-year tranche.
The CNPC 2041 bonds were trading around 157bp over
treasuries. The iTraxx series 17 index was at 162/165bp from
Winsway bonds gave up some of yesterday's gains Moody's said
it sees no rating impact on the company's ratings from the
planned sale of a 29.9% shareholding interest by its major
shareholder to Aluminum Corporation of China Limited (Chalco).
Its 2016 bonds were steady around 92/94 cents after rallying
to as high as 95 cents last morning in hopes of a ratings
"In high yield there is a focus on property names like
country Garden and Evergrande," said a high yield trader.
Country Garden's 2018 bonds were trading at 98/99 cents.