HONG KONG, Nov 20 (IFR) - Asian credits were in subdued mode
with much of the activities dominated around Olam whose bonds
bounced back in the afternoon after the sharp sell-off earlier
in the day.
The Asia iTraxx IG Series 18 ended the day almost steady at
122bp/124bp with the five-year CDS for the Philippines and
Indonesia quoted at 105 bp and 131 bp respectively.
Olam's US dollar 2017s were back to 89/93 after sliding down
to a bottom of 83 in the morning, while the shorter-dated
Singapore dollar bonds of one and two years have picked up to
94-96 after slipping to 88. The Singapore dollar perpetual fell
to 84/88, where they still are, while the 2022s have picked up
There was also some selling seen in some Malaysian banking
bonds, according to a trader, with the Maybank 2022s quoted at
around T+283bp area bid.
Buying was seen around Tencent as its bonds tightened
marginally after the new Baidu deal was announced. The Tencent
2016s were quoted around T+240bp area.
There was not much reaction in the Longfor bonds, despite
concerns that the change of control clause would be triggered
after some local press reports said that Longfor's Chairwoman Wu
Yajun was recently divorced from her husband Cai Kui. The 2019s
were quoted around par.
"We see the risk of triggering the "Change of Control" put
and the impact on Longfor as minimal," a Deutsche Bank report