SINGAPORE, June 26 (IFR) - Asia's credit markets endured
another quiet day, but with the price action again resilient in
the face of poor US equity market price action overnight as deep
skepticism towards the upcoming European summit dented
The iTraxx series 17 is ending 2bp wider at 185bp/187bp on
thin two-way flow. Spanish 10-year bonds are holding in decently
at 6.68% at the open and help explain the solid end to the day's
A move to put PRC coal producer Hidili on negative watch by
S&P had already been factored in to the price and the due 2015
bonds are ending unchanged at 78/80.
The company faces the refinancing of a put in January
totaling Rmb1.8bn and deteriorating cashflows, highlighting the
perceived refinancing risk in the China industrial and property
The rout on Evergrande's offshore curve prompted by a
negative research report from Citron Research has again
incrementally reversed, with the paper up at 94/95 today, or
five points above the low hit last Thursday when the report came
This underscores the apparent attractiveness of China
property paper, with the Cogard 2018s up at a 100.5 offered
side, or a half on the day and the Agile 2017s at a 99.5 offer,
or approaching the optically significant par level.
Contrary to the perceived notion that the China property
space should trade at a steep discount to the overall market,
the market is bidding up the sector on the view that the worst
is over for sales and that the local banks will step into the
breach for refinancing. China five-year CDS is closing out 3bp
wider at 131bp/133bp.
The recently issued IOI 2022s have notably underperformed
the broader market, with the paper now bid 6bp north of its
Treasuries plus 280bp reoffer.
By contrast the new KEB 2017s are a full 15bp inside reoffer
at a plus 240bp bid and the Hang Lung 2022 in at plus 326bp
versus a plus 335bp reoffer, while the First Pacific 2019s are
up at a 100.75, or 0.75 above reoffer and unchanged on the day.