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ASIA CREDIT CLOSE: Kexim gains amid firm credit market tone
November 3, 2015 / 8:17 AM / 2 years ago

ASIA CREDIT CLOSE: Kexim gains amid firm credit market tone

SINGAPORE, Nov 3 (IFR) - The latest bonds from Korean policy bank Kexim were faring well amid a firm market tone attributable to positive US economic data.

Kexim priced two-tranche bonds of US$1.75bn last night, at 95bp over US Treasuries for the 5.5-year and at 110bp over for the 10-year. While the 2021s tightened slightly to 95bp/92bp today, the longer-dated notes rallied to 98.5bp/97.0bp.

The gains were partly due to the Korean bank’s strategic move to leave more on the table for investors and partly to the overall positive market sentiment.

The positive sentiment also spilled onto recent issues. CGNPC’s 2025s, priced last week, tightened again today with quotes at around 189bp, inside reoffer spread of 197.5bp.

Asian stocks gained today, taking a cue from a 1% overnight rise in US shares, and helping to shore up credit spreads which tightened 2bp. The iTraxx Asia investment-grade index was indicated at 127bp/128bp.

Despite the better tone, traders said deal flows were low and the market was quiet.

In the high-yield segment, Hidili’s maturing bonds due on November 4 crashed over 20 points yesterday on news of a likely default.

The company said it was unsure of being able to meet an upcoming bond maturity and interest payment. The 2015s were indicated at a cash price of around 58.00 today.

Maoye, which S&P downgraded to B from BB-, saw its 7.75% 2017s slip to indications of 99.77. (Reporting By Kit Yin Boey; Editing by Dharsan Singh)

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