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ASIA CREDIT CLOSE: Credit softens as China imports disappoint
June 8, 2015 / 8:48 AM / 2 years ago

ASIA CREDIT CLOSE: Credit softens as China imports disappoint

SINGAPORE, June 8 (IFR) - With Australia on holiday today and Singapore investors starting to think about their summer breaks, trading was subdued and credit had little reaction to mixed signals from the East and West.

US non-farm payrolls exceeded expectations on Friday, but the latest Chinese trade data disappointed. Imports fell 17.6% year on year in May, worsening after a 16.2% year-on-year drop in April, while exports were down 2.5% on a similar basis.

“People are waiting for London to open and will take their cues from there,” said one credit trader.

Some recent new issues have made a soggy start in the secondary market. Bharti Airtel’s 2025s have widened 3bp since pricing on Wednesday, to T+212/214 from T+210, and Woori Bank’s AT1s were yielding 5.2%/5.3% today, having priced at 5.0%.

High yield was a quarter to half a point lower, with no major moves, although some buying was seen in Winsway’s distressed 2016s, quoted at 28.25/30.25, after trading in the stock was suspended this morning, pending an announcement.

The iTraxx Asia investment-grade index widened 3bp today to 110.25/111.25.

The Malaysian sovereign’s cost of 5-year protection increased 10bp to 125bp/129.5bp following the events on Friday, when police called off a public discussion on troubled state investment agency 1Malaysia Development Berhad and shut off former premier Mahathir Mohamad’s microphone.

China and Indonesia were each 3bp wider, at 89bp/90bp and 173bp/179bp, respectively.

daniel.stanton@thomsonreuters.com

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