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.
{{/usCountry}}The nation's five-year CDS widened to 690/725 bps from 660/670 on Monday.
{{/usCountry}}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
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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
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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