SINGAPORE, May 5 (IFR) - Secondary trading was muted today
as Tokyo and London were closed for holiday, although Chinese
property spreads widened amid bearish sentiment for the sector.
Spreads on Poly Real Estate's 2019s widened 3bps to
379bp/372bp over US Treasuries. China Overseas Land and
Investment's freshly-issued USD1bn dual-part bond widened by
The 2019 tranche was trading at 250bp/246bp over Treasuries,
while the 2024 tranche was trading at a spread of 327bp/322bp.
Sentiment was mixed among China's high-yield property
companies, as investors showed more confidence in BB companies
over B credits.
" seem to be more comfortable with BB
paper," a Hong Kong-based trader said. Prices of BB paper was
generally firm while BB names were about 25 cents weaker, he
One outperformer was Kaisa Group Holding. Its 2018s bonds
rose 12.5-25cents to 98.625/99.125 after Standard & Poor's
upgraded the developer to BB- from B+ citing its good sales
execution and the extension of maturity on its offshore debt.
Shui On's newly issued 2018s and 2020s also edged up
slightly in price, with both hovering around par.
In South-East Asia, Vistaland's freshly issued 2019s were
well sought after with its cash price quoted at bid-100.75.
"PBs are looking to buy but there was little loose inventory
out there," a Singapore-based trader said.
Meanwhile in Korea, spreads of Woori's Tier 2 bonds widened
by a touch to 223/219 over US Treasuries.
The Asia ex-Japan IG iTraxx widened by 1bp to 225bp/227bp.