HONG KONG, Jan 21 (IFR) - Asian credit spreads narrowed
Tuesday as risk sentiment remained upbeat, although high-yield
Chinese property bonds saw some pressure amid ongoing supply of
new paper from the sector.
"There are a lot of real-money investors freeing cash for
new issues," said a Hong Kong-based credit trader.
The Itraxx Asia IG index narrowed to around 141bp from
yesterday's close of around 144bp.
Korean floating-rate notes widened after the new three-year
issue for Kookmin Bank was announced at 105bp over three-month
Libor. The KDB three-year FRNs traded wider at 64bp over
The new issue from China Shipbuilding, backed with a standby
letter of credit from Bank of China, weakened other similarly
backed paper as the new five-year trade came at 280bp over US
The SBLC-backed bonds from China Merchants Land, maturing in
2018, were at 229bp over Treasuries, CSSC Capital's 2016s and
Cosco Finance' 2022s also saw real-money selling.
Towngas is also marketing its new non-call five year
perpetual securities at par to yield of 5% area this morning
after the Greentown perps, which priced yesterday, traded at par
to yield 9%.
China South City recovered to around par after some
profit-taking this morning. Cifi Group's bonds were trading
slightly weaker at 99.40/99.50 after pricing at 99.545
Overall, high-yield Chinese property bonds traded
0.25pt-0.50pt weaker today.