January 21, 2014 / 9:17 AM / 4 years ago

ASIA CREDIT CLOSE: Spreads narrow, China property bonds under pressure

2 Min Read

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 three-month Libor.

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 Treasuries.

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 yesterday.

Overall, high-yield Chinese property bonds traded 0.25pt-0.50pt weaker today.


0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below