HONG KONG, Jan 11 (IFR) - Asian credit markets had a
constructive session on Wednesday with new issues, such as the
notes of New World China Land, tighter in the secondary market.
"Flows were not particularly strong today, but the overall
tone was constructive," said an investment-grade trader. He
noted that Hong Kong-based bank treasuries and insurers were
seen buying notes of 10 years.
"From late last year, the market has been flush with
short-dated bonds from Chinese local government financing
vehicles, creating demand for long-dated notes as curves
deepened," he said.
Activities related to mainland investors have yet to pick
up, observed a Hong Kong-based credit analyst, saying "mainland
banks tend to put their money in short-term products, such as
CDs, before the Lunar New Year".
This, he said, would give them more flexibility when demand
for cash withdrawals rose at Lunar New Year.
The iTraxx Asia ex-Japan IG was little changed at
115.500/117.500. CITIC's 2021s were bid at 113.62, according to
Thomson Reuters data.
New World China Land's US$600m new issue tightened to
T+235bp. The unrated 10-year issue was reoffered at Treasuries
plus 237bp yesterday.
China Aoyuan's 2020s were bid at 100.67, according to
(Reporting by Ina Zhou; editing by Dharsan Singh)