Emerging debt-Asian debt spreads widen on financial concerns
Asian bond spreads widened on Tuesday on fresh worries about the health of the global financial system after insurer AIG reported a record quarterly loss and another bailout from the US government.business Updated: Mar 03, 2009 09:26 IST
Asian bond spreads widened on Tuesday on fresh worries about the health of the global financial system after insurer AIG reported a record quarterly loss and another bailout from the US government.
American Insurance Group reported a $61.7 billion loss on Monday, the biggest quaterly loss in US corporate history, and announced it would get access to up to $30 billion of new capital from Washington.
The Asia iTraxx investment-grade index excluding Japan, a key measure of risk aversion, widened to 460/470 basis points (bps) from 440/460 on Monday, traders said.
MSCI index of Asia-Pacific stocks outside Japan was down 0.2 percent at 0320 GMT.
The following were the major movers in cash bonds and credit default swaps (CDS):
Indonesia's recently-issued bonds traded below their issue price, reflecting growing risk aversion. The country's 10.375 per cent bonds maturing in 2014 fell to 96.375/97.00 from their issue price of 99.455, a Hong Kong-based analyst said.
The nation's five-year CDS widened to 690/725 bps from 660/670 on Monday.
Philippines' cash bonds continued their declines, tracking losses in the broader market. The country's 8.375 per cent bonds maturing in 2019, which were sold in January, were traded at 104.25/104.75 from 105.25/105.75 on Monday.
The country's five-year CDS widened to 495 bps from 450/480, a Manila-based trader said.
Meanwhile, Asia Aluminum won't increase the price for senior bonds or payment-in-kind (PIK) notes that it is buying back, its chairman said on Monday.
Traders said the company's bonds have not traded recently.
The company also issued a statement to the Singapore Stock Exchange about the debt buy back plan: http://126.96.36.199/sgxnews/sgxnews.asp?i=43059c3bf0e37541&u=u
rn:newsml:reuters.com:20090303:SGX_40171 latest major ratings activity in asia (excluding japan) revises outlook on Reliance debt ratings Fitch reviews ratings for Hong Kong banks [ID:nBNG467823] >Moody's cahnges IOI's ratings to negative
Five-year credit default swaps
Current Week ago
Korea Dev Bank 474.54* 499.46*
Hutchison ~/340 295/325
PCCW-HKT 480.00* 465.00*
China 245/~ 245/~
Indonesia 640/~ 645/~
Korea 435/~ 437/~
Malaysia ~/330 ~/330
Philippines 460/~ ~/480
~ no bid or ask spread
For CDS prices double click on
ASIAN BENCHMARK DOLLAR BONDS
Coupon Maturity Bid price Bid spread
DBS Bank 7.13 15-May-11 105.16 279
Malaysia 7.50 15-Jul-11 108.72 178
ICICI Bank 5.75 12-Jan-12 84.00 107
Petronas 7.00 22-May-12 103.39 398
Hutchison 6.50 13-Feb-13 100.71 445
Chartered Semi 6.25 4-Apr-13 72.25 138
Korea 4.25 1-Jun-13 96.49 334
United Overseas 4.50 2-Jul-13 96.25 364
PCCW-HKT 6.00 15-Jul-13 77.07 1012
China 4.75 29-Oct-13 103.05 210
Hutchison 7.45 24-Nov-33 91.04 541
Korea 4.88 22-Sep-14 98.51 229
PCCW-HKT 5.25 20-Jul-15 71.29 888
Woori Bank 6.13 3-May-16 68.97 1014
Penerbangan 5.63 15-Mar-16 97.40 318
Philippines 8.75 7-Oct-16 108.50 438
Indonesia 6.88 9-Mar-17 78.50 809
ICICI Bank 6.38 30-Apr-22 56.50 977
Petronas 7.88 22-May-22 108.25 402