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.

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.

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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://159.43.254.157/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

Bid/Ask spread

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

*midspread

ASIAN BENCHMARK DOLLAR BONDS

Coupon Maturity Bid price Bid spread

5-Year

------

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

10-YEAR

-------

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