September 30, 2016 / 9:16 AM / a year ago

ASIA CREDIT CLOSE: Deutsche problems dent risk appetite

HONG KONG, Sept 30 (IFR) - Deutsche Bank’s woes weighed on risk sentiment across Asia, with spreads widening across investment-grade and high-yield credits.

The Asian investment grade CDS index was 5bp wider at 120bp/121bp, after the German lender’s CDS jumped 21bp on Friday and the stock hit record lows.

China Citic Bank International became the latest Asian bank to see new US dollar Additional Tier 1 bonds drop in the aftermarket.

The US$500m perpetual non-call five priced at par to yield 4.25%, but was quoted at a cash price of 99.217/99.563, according to Tradeweb.

Sinopec’s new issues continued to widen, with the US$600m 2026s spotted 5bp wider at 143bp/142bp, while CK Hutchison Holdings’ 10-year notes were also quoted 3bp wider on the day at 132bp/129bp, said a Singapore-based trader.

Chinese property developers were also hit in the risk-off run. Country Garden’s US$650m 4.75% 7NC4s were a third of a point lower at 97.81/98.03, while HNA Group’s new US$200m five-year notes were trading below re-offer at 99.26/99.62, said Tradeweb.

Indonesia’s US$1.25bn 5.95% 2046s were almost half a point lower at 126.66/127.02.

Reporting by Frances Yoon; Editing by Vincent Baby

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