SINGAPORE, Feb 21 (IFR) - A deluge of new deals from a
variety of sectors, with issuers like the Hong Kong government
and Korea Development Bank, failed to dampen the Asian secondary
"These are not the kind of issuers that move markets," said
a credit trader. "KDB is offering three and five-year bonds,
which is probably what people want anyway. People are waiting
for direction after the US holiday yesterday."
The Asia ex-Japan iTraxx investment grade index was 1bp
tighter at 100bp/101bp, and Chinese investment-grade credits had
a good session.
Bank of China Hong Kong's 2020 bonds tightened 3bp to a
Treasury spread of 104bp from 107bp, while its 2022s tightened
2bp to a spread of 100bp.
Telecommunications company Huawei is unrated but considered
a blue chip. Its 2022s and 2027s each tightened 1bp to Treasury
spreads of 128bp and 158bp, respectively, both in around 4bp
from their issue prices.
Investors piled into high yield, especially in credits
related to commodities. Mongolia's 2022 bonds gained 3.5 points
today, even after they jumped yesterday on news that it had
agreed IMF funding.
Those bonds were yielding 6.5% today, having been at 8.5%
less than two weeks ago.
Vedanta Resources' 2022s jumped nearly half a point, to
102.1, yielding 5.9%, after it reported a 26% year-on-year gain
in revenue in the quarter ended December 31.
Indonesian mining services provider BUMA's 2022 bonds jumped
more than 1.5 points to a cash price of 103.2, yielding 7.0%.
That marked a huge improvement after the company sold the bonds
at a yield of 8% two weeks ago.
Outside the commodities sector, property developer Road King
Infrastructure's perpetual bonds callable in 2022 were seen at
102.75 to yield 5.4%. They were flat today, but have been strong
performers since the bonds were sold at par just over a week
(Reporting by Daniel Stanton; Editing by Vincent Baby)
(Reporting by Hillary Teo)