Asian G3 bonds mauled by bear market

KEB Hana executes offshore bond in difficult markets as selling wave pushes credit wider, while Province of British Columbia launches a debut Panda bond.
Face to face with the bear market
Face to face with the bear market

The first offshore dollar bond from the newly merged KEB Hana Bank hit a market under severe selling pressure on Wednesday, complicating efforts to execute a five-year transaction.

Bankers working on what ended up being a relatively small $300 million trade said it was very hard to pinpoint fair value for the new deal given that secondary market spreads were widening by the hour.

“The market is exceptionally volatile,” said one. “Treasury rates are out by 8bp so far today and credit spreads up to 10bp wider.”

When the A1AA- rated Reg S deal launched in the Asian morning, the region’s credit...

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