SINGAPORE, Jan 17 (IFR) - Asian secondary credit trading was
dominated by glaring pockets of weakness in recent new issuance,
with the market struggling under the weight of the recent heavy
supply. Some USD4.6bn of China property issuance has been
brought so far this month and so far this year around two thirds
of total Asia G3 issuance has emanated from China, versus around
a half for the whole of 2012.
Numerous market players are of the opinion that the issuance
from PRC entities has been on the excessive side, although
expect spreads to tighten further once the supply has been
absorbed. The seasoned market has been relatively stable amid
light flow, with the iTraxx IG index unchanged into the close at
In the new issue space, the Champion Reit 2023s stabilised
from their early week nosedive and were stable at Treasuries
plus 255bp, versus last week plus 195bp reoffer. Meanwhile the
new two-tranche Reg S from Yuexiu Property was a notable
underperformer on its first day of secondary trading.
The 5-year tranche was out at Treasuries plus 285bp at one
point and got hit there, versus a plus 255bp reoffer, while the
10-year was around 30bp wider at plus 305bp, with the bid having
been as wide as 310bp earlier in the day.
Meanwhile the recently issued perps were also in the
doldrums, with yesterday's pulling of a planned perp from KWG
Properties not helping the perp complex. The Agile perp
continued to be weighed down by selling and was last down at
95.5 from a par reoffer while yesterday's offering from Cheung
Kong was down at a 97.5 bid, having opened up at 96.5.