ASIA CREDIT CLOSE: Korean credits pressured on heightened Korean tension
Reuters Staff
SINGAPORE, Sept 6 (IFR) - Asian credits were marginally weaker today amid heightened geopolitical tensions stemming from concerns over further North Korean nuclear tests.
The iTraxx Asia investment-grade index widened 1bp to 80bp/81bp, but South Koreas five-year CDS pushed out 4bp to 70bp/72bp.
The indices for Korean policy banks also widened with KDBs CDS widening 6bp at 71bp/76bp, while Kexims CDS gapped out 7bp to 71bp/76bp.
Korean cash bonds were also hit, widening about 5bp. Hyundai Capitals recently priced 3% 2022s were seen at 137bp/132bp, around reoffer spread of 135bp, but the longer-dated 3.62% 2027s widened more substantially to 162bp/160bp against reoffer spread of 155bp.
Lotte Shopping, which sold 2020s last Thursday at 105bp, saw the notes weaken to 109bp/103.5bp.
“No cash is going into Korean credits, no one wants to take on their risk right now,” said one credit trader.
Other cash bonds were holding up as Sun Hung Kais 4.65% due 2022s were quoted at 100.6/101.00 against a reoffer at par.
Cheung Kong Infrastructures fixed-for-life perpetual notes were a touch lower at 99.75/100.2 after a minimal gain on Monday to 100.5.
Reporting by Kit Yin Boey; Editing by Dharsan Singh
Our Standards:The Thomson Reuters Trust Principles.북한의 핵실험 다음에도 한국채(5년물)의 CDS 리스크 프리미엄은 71-76b.정직 파탄과는 먼 영역입니다.다만, 이대로 북한의 도발이 계속 된다면 아무도 한국에는 투자하지 않는다고 하는 것이 전문가의 견해입니다.투자가 여위면 한국은 또 IMF지요.한국인은 또 IMF가 희망입니까?
