HONG KONG, Dec 14 (IFR) - Asia credit markets were slightly
firmer in light trading as investors awaited the US Federal
Reserve's rate decision.
"We've seen flows into highly rated Asian credits in the
past few days," said a Hong Kong-based investment-grade credit
He noted that some investors built positions before the
policy meeting, seeing that there might be limited room for US
treasury yield to rise further.
"An interest rate hike has been priced in. It may look safe
for some to place bets now, assuming the Fed raises rates as
expected and it does not give a hawkish tone on rate outlook in
the accompanying FOMC statement."
The Asia ex-Japan iTraxx IG CDS index was 1.2bp tighter
today at 117bp/119bp.
Chinese policy banks and big oil names were seen tighter
with China Development Bank's US$1.875% 2021s bid at 96.33 and
Sinopec's US$ 2018s bid at
The high-yield sector was relatively weaker, though new
issues outperformed. Shandong Ruyi Technology Group's new
US$250m 2019s gained over a point in secondary trading. The
notes were issued yesterday at 98.171.
Guidance has been released for the senior tranches of a
A$500m (US$370m) indicative offering of prime and non-conforming
RMBS that speciality finance group Liberty Financial originated.
Price talk for the A$100m Class A1a notes, the A$225m Class A1b
notes and the A$105m Class A2 notes, with weighted-average lives
of 0.40, 2.5 and 3.6 years, is one-month BBSW plus 75bp area,
145bp-150bp area and 240bp area, respectively. All three notes
have Aaa ratings from Moody's.
India's Axis Bank has raised Rs35bn (US$518m) from Basel
III-compliant Additional Tier 1 bonds, with a call option after
five years, at 8.75%, according to filing on National Securities
China Construction Bank (Asia) has obtained approval from
the People's Bank of China to issue Panda bonds to raise up to
Rmb6bn (US$869m). The Hong Kong-incorporated wholly owned
subsidiary of China Construction Bank intends to issue the first
batch of Rmb1bn three-year Pandas in the interbank bond market
(Reporting by Ina Zhou; editing by Dharsan Singh)