SINGAPORE, April 28 (IFR) - Spreads on a slew of bonds
issued last week widened around 2bp in secondary trading today
as the market expected more new supply to be sold this week.
The Asia IG iTraxx index widened by 1bp to 127bp/128bp
Four new deals were announced this morning from State Grid,
CLP Power, Korea Land & Housing Financing Corp and Ratchaburi
Electricity Generating Holding Company. China's Country Garden
Holdings also said this morning it has appointed banks for a new
bond to refinance its outstanding 2017s.
CNOOC's 2024s widened to a bid of 170bp over US Treasuries,
from 165bp on Friday, after State Grid announced its
three-tranche offering. CNOOC's 2044s, which hovered around the
reoffer spread of 150bp last week, also widened to a bid spread
State Grid is looking to raise up to USD3.5bn from the bond
offering, nearly the same amount as CNOOC's USD4bn jumbo sale
last Wednesday, buyside sources said.
Woori Bank's USD1bn Basel III-compliant Tier 2 bonds, which
were badly hit after they broke for trading last week,
stabilized at a mid-market quote of 220bp over US Treasuries,
versus the reoffer spread of 207.5bp.
In the high yield space, the Chinese property sector inched
down 75 cents to 1 point after Country Garden announced the
Country Garden's longer-dated bonds slid around 75 cents
today, with the 2021s indicated at 92/93 and 2023s at 91/92.
Investors also are slightly bearish on the sector because of
recent negative news on China property sales, said a bond
In the first quarter this year, total contracted sales in
China's residential property market dropped 7.7% to CNY1.1trn
compared to the same period last year, reversing the steady
growth over last year.
"[There were] more sellers in the property sector today and
[private banks] are not going in," the trader noted.
While it was generally quiet on most trading desks today,
traders expect heavy activity tomorrow after the four new deals
break for trading.