HONG KONG, March 27 (IFR) - Asian credit spreads largely
held steady today, but Citic Pacific attracted most attention as
its bonds traded up after parent Citic Group agreed to inject
its main operating arm into the Hong Kong-listed subsidiary.
Today's session was a quiet one with the Asia ex-Japan
iTraxx IG Index steady at yesterday's level of130bp/132bp.
However, Citic Pacific's perps were trading 5 points higher
on the day at 105/106, whereas its 2023s were trading up at
104.5/105, up from 97 points before the news.
In the investment-grade credit segment, there was some
buying in Chinese property names and this helped Wanda property
bonds tighten 10bp-15bp.
The new China Construction Bank 3-year bonds were trading at
199bp/197bp over the two year US Treasury versus 205.7bp over
the 2-year Treasury at reoffer.
"Overall, the market looks very quiet today and there is no
news of imminent supply in the market," said a Hong Kong-based
CDS levels were also steady on the day. Korea's 5-year CDS
was at 59bp-62bp, China's was at 94bp-96bp, the Philippines' was
at 106bp-112bp and Indonesia's was at 178bp-185bp.