SINGAPORE, Oct 17 (IFR) - There was a burst of primary
activity today, as issuers tried to come to market ahead of the
expected US$10bn-plus sovereign offering from Saudi Arabia
Even with that potential supply weighing on emerging
markets, credit rallied.
The Asia ex-Japan investment-grade iTraxx index was 2bp
wider at 118bp/119bp, but cash bonds traded better.
CK Hutchison's dollar notes tightened, as stablemate Cheung
Kong Property mandated for a proposed offering of Reg S bonds.
Its 2021s and 2026s both narrowed 1bp to Treasuries plus 90bp
and 125bp, respectively.
That meant its 5-year notes were flat to the initial offer
price and its 10-year paper was 5bp tighter.
China National Bluestar's 2019s tightened 3bp today to
Treasuries plus 176bp, a strong performance after the notes
originally priced at 230bp.
Its 2021s were at 194bp, 3bp tighter today and a massive
51bp improvement since being issued.
China Cinda Asset Management's AT1s were still underwater at
99.5 bid, but that was a recovery from a low of 98.6 at the end
In high yield, Chinese developer Country Garden's 2023s
edged down a quarter of a point to 96.5, down two points in less
than a month.
(Reporting by Daniel Stanton)