SINGAPORE, Jan 13 (IFR) - Activity in the Asian secondary
debt markets was mostly focused on some new bonds, which faced
competition from similar offerings announced today.
In the words of one trader, the market was "selectively
wider," with most of the weakness concentrated on the new bonds
from the Export-Import Bank of Korea and Bank of Communications
Kexim's new 2024 bonds, for instance, widened 3bp to close
bid at 106bp today after Korea Development Bank announced a new
dollar issue at terms identical to those of its peer last week.
KDB is out with a new 3-year floating-rate note and a
10-year fixed-rate dollar bonds with initial guidance set at
80bp over Libor and 120bp over US Treasuries, respectively.
Bank of China, meanwhile, also announced a two-tranche
offering, which took the shine away from BoCom's 3-year bonds
printed last week, which were, therefore, last quoted at
186bp/184bp over the 2-year US Treasury, or 3bp wider.
One banker saw that as evidence that accounts are
reshuffling cash. While they want to buy the new issues, which
in general offer higher coupons than similar bonds issued last
year, they have to sell their current holdings to make space for
the new stuff.
Otherwise, traders said there was little to write home
about. "It feels a bit softer with some fast money selling, but
not much going on," said one trader.
High-yield bonds were also unchanged, as investors continued
to digest the four issues from Chinese property developers last
week. "People are still trying to assess what the pipeline will
look like," said one high-yield trader.