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CREDIT SUPPLY: Asia Credit Spread Grind Tighter, Primary Market Picks Up

CREDIT SUPPLY
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  • Asian equities gained on Monday, driven by optimism around potential Chinese stimulus after the finance minister hinted at more economic support, though no major details were provided. Chinese stocks led the region, with the CSI 300 up 1.7% as investors anticipated government action. There has been a clear rotation out of China H shares and into China A shares, however concerns remain about the lack of specifics, with volatility reminiscent of past market surges. Elsewhere, South Korea’s Kospi rose 1%, while Australia’s ASX 200 gained 0.5%, while US futures were flat and oil prices fell, reflecting broader global market uncertainty.
  • It has been another session of credit spreads grinding tighter today, with the primary market again quiet. Judo Bank launched a 10NC5 T2, with expected size of about $100m, guidance is +370bps, with a rating of BB+ a rare HY bond for Australia. In secondary, SNR/SUB was again -1/-2bps, while corps saw better two-way trading.
  • Asia IG was quiet today with investors hopeful for further stimulus measures out of the China business briefing meetings today, although there have been little headlines out throughout the session. China property names were the top performers today, largely tracking moves in equity benchmarks. Overall Asia IG spreads were unch to -1bps, while there were 3 primary deals announced.
  • Aus iTraxx CDS is unchanged at 65bps & Asia Ex-JP iTraxx is also unchanged at 71.5bps
  • Primary: China Huadian USD PerpNC3 Sub, Korea Land & Housing USD 2 to 3Y, Power Construction Corp of China USD PerpNC5.
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  • Asian equities gained on Monday, driven by optimism around potential Chinese stimulus after the finance minister hinted at more economic support, though no major details were provided. Chinese stocks led the region, with the CSI 300 up 1.7% as investors anticipated government action. There has been a clear rotation out of China H shares and into China A shares, however concerns remain about the lack of specifics, with volatility reminiscent of past market surges. Elsewhere, South Korea’s Kospi rose 1%, while Australia’s ASX 200 gained 0.5%, while US futures were flat and oil prices fell, reflecting broader global market uncertainty.
  • It has been another session of credit spreads grinding tighter today, with the primary market again quiet. Judo Bank launched a 10NC5 T2, with expected size of about $100m, guidance is +370bps, with a rating of BB+ a rare HY bond for Australia. In secondary, SNR/SUB was again -1/-2bps, while corps saw better two-way trading.
  • Asia IG was quiet today with investors hopeful for further stimulus measures out of the China business briefing meetings today, although there have been little headlines out throughout the session. China property names were the top performers today, largely tracking moves in equity benchmarks. Overall Asia IG spreads were unch to -1bps, while there were 3 primary deals announced.
  • Aus iTraxx CDS is unchanged at 65bps & Asia Ex-JP iTraxx is also unchanged at 71.5bps
  • Primary: China Huadian USD PerpNC3 Sub, Korea Land & Housing USD 2 to 3Y, Power Construction Corp of China USD PerpNC5.