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CREDIT MACRO: Credit Spreads Unch, Aus Primary Continues Busy Period

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  • Asian equities are broadly higher today, buoyed by optimism in U.S. equities and easing yields. Japanese equities gained as a weaker yen boosted exporters like Toyota. Gold miners rallied across Asia, tracking bullion’s rise after Goldman Sachs reaffirmed its $3,000 price target by 2025. In Australia, the ASX neared record highs on bullish mining sector forecasts from Morgan Stanley. Meanwhile, Hong Kong investors focused on a key financial summit amid concerns over China’s economic challenges and property sector woes. Oil prices stabilized after Monday's geopolitical-driven surge, while Bitcoin traded near all-time highs.
  • Again the focus in Australia has been on primary, with Rabo priced a FXD & FRN 4yr at +75bps, Shinhan priced 5yr FRN at +97bps, while Iderdrola priced a FXD 6yr at +120 & 10yr at +143bps, while Barcalys announced they are looking to print a 10.5NC5 Tier 2, initial guidance is +225bps, Scentre are also looking to print a 5yr with guidance at +130bps and a 10yr with guidance at +170bps, SMBC are looking at a A$ 5yr, guidance at +92bps, while NAB have announced a 3yr USD 3yr at +60bps area. In secondary, corporates are a touch weaker today, with utilities trading +1/+2bps, while Fins trade unch.
  • It was a slow session in Asia today, focus largely on the new Alibaba deal they ahve launched a multi-tranche dollar bond offering on which included 5.5, 10.5, and 30yr notes priced at 24bps, 29bps, and 34bps above its existing debt curve, the company is also planning offshore yuan bond issuances with tenors ranging from 3.5 to 20 years. In secondary, Asia IG spreads are unchanged today, while HY spreads are +1bps.
  • China’s dollar-bond market is experiencing a revival, with October issuances totaling $7.77b, more than double from a year earlier, as Beijing’s stimulus measures boost investor confidence and lower issuance costs.
  • Aus iTraxx CDS is -0.5bps at 66.5bps & Asia Ex-JP iTraxx is also -0.5bps at 73.5bps
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  • Asian equities are broadly higher today, buoyed by optimism in U.S. equities and easing yields. Japanese equities gained as a weaker yen boosted exporters like Toyota. Gold miners rallied across Asia, tracking bullion’s rise after Goldman Sachs reaffirmed its $3,000 price target by 2025. In Australia, the ASX neared record highs on bullish mining sector forecasts from Morgan Stanley. Meanwhile, Hong Kong investors focused on a key financial summit amid concerns over China’s economic challenges and property sector woes. Oil prices stabilized after Monday's geopolitical-driven surge, while Bitcoin traded near all-time highs.
  • Again the focus in Australia has been on primary, with Rabo priced a FXD & FRN 4yr at +75bps, Shinhan priced 5yr FRN at +97bps, while Iderdrola priced a FXD 6yr at +120 & 10yr at +143bps, while Barcalys announced they are looking to print a 10.5NC5 Tier 2, initial guidance is +225bps, Scentre are also looking to print a 5yr with guidance at +130bps and a 10yr with guidance at +170bps, SMBC are looking at a A$ 5yr, guidance at +92bps, while NAB have announced a 3yr USD 3yr at +60bps area. In secondary, corporates are a touch weaker today, with utilities trading +1/+2bps, while Fins trade unch.
  • It was a slow session in Asia today, focus largely on the new Alibaba deal they ahve launched a multi-tranche dollar bond offering on which included 5.5, 10.5, and 30yr notes priced at 24bps, 29bps, and 34bps above its existing debt curve, the company is also planning offshore yuan bond issuances with tenors ranging from 3.5 to 20 years. In secondary, Asia IG spreads are unchanged today, while HY spreads are +1bps.
  • China’s dollar-bond market is experiencing a revival, with October issuances totaling $7.77b, more than double from a year earlier, as Beijing’s stimulus measures boost investor confidence and lower issuance costs.
  • Aus iTraxx CDS is -0.5bps at 66.5bps & Asia Ex-JP iTraxx is also -0.5bps at 73.5bps