HONG KONG, May 9 (IFR) - Asian credits traded marginally
tighter on Tuesday while the performance of new issues were
Investment-grade credits, in general, traded 1bp-2bp
Oil names saw some support on expectations OPEC supply cuts
will be extended, while bonds of Chinese leasing companies were
also actively traded, according to a Hong Kong-based IG trader.
The iTraxx Asia investment-grade index tightened by less
than 1bp and was indicated at 89.3bp/90.8bp.
South Korean lender Woori Bank's newly priced US$500m 5.25%
perpetual non-call five Additional Tier 1, which priced a day
before the country's presidential election, traded up to a bid
of 100.4 in late afternoon.
"Moon Jae-in is widely expected to win the presidency and I
didn't see any impact on Korea credits," the trader said.
The newly priced two-tranche floaters from Bank of
Communications' Hong Kong branch also traded well.
The US$700m three-year traded 1bp tighter while the US$300m
five-year notes traded 3bp-4bp tighter from reoffer level of
three-month Libor plus 78bp and 88bp respectively.
Indonesian electricity company Perusahaan Listrik Negara's
US$2bn dual-trancher, however, traded mixed.
Its US$1.5bn 4.125% 10-year notes were under water and
trading with a cash price of 98.60, from reoffer of 98.890. Its
US$500m 5.25% 30-year notes traded up with cash price of 99.35
versus reoffer of 98.514.
The high-yield segment was also firm today with flows varied
by name and sector. But in general, single B Chinese property
names saw buying interest from private banks, according to a
Though, Chinese dairy producer Reward's 7.25% 2020s were
traded down to bid at 101.109, from 101.123 late yesterday,
after Moody's changed its B1 corporate family rating outlook to
negative from stable.
(Reporting by Carol Chan; Editing by Vincent Baby)