Northeast Asia

China has been buying negative-yielding JPY bills to profit from using USD/JPY basis swaps. Short NDIRS have been bid. The curve is flattening and sources see scope for it to flatten further before 1s/10s meets resistance around the 35bp level.

South Korea’s Small & Medium Business Corp (SBC) pulled in $500m on Monday from its return to the debt market after a hiatus of 10 years. The combination of a recent credit rating boost and its rarity allowed the issuer to price the bond in line with policy banks.

UBS’s deputy head of China corporate client solutions (CCS) left the Swiss bank last month, said sources close to the departure.

Investors are set to welcome a new Chinese local government financing vehicle to the bond market, with Chongqing Western Modern Logistics Industry Zone Development Construction hitting the road for its maiden dollar outing.

The Republic of Poland will open books on Thursday on the first Panda bond from a CEEMEA issuer and is looking to print with a 3% handle, according to a banker at one of its leads.

South Korea’s Small & Medium Business Corp (SBC) has returned to the international debt market after a decade-long absence, launching a new 10 year dollar note on Monday.

Samsung Heavy Industries Co is looking to raise about W1.1tr ($976.1m) from a rights offering in November, according to a source familiar with the matter.

S&P Global Ratings lowered its rating on Mongolia to B- from B, citing the country’s weaker fiscal performance and growth prospects. This is a further blow to the country, which was already downgraded by one notch in November 2015.

Fantasia Holdings Group made a rapid return to the dim sum bond market on Monday, opening a tap of its Rmb600m ($92.4m) 9.50% 2019s sold in April this year.

Four banks have launched a $250m syndicated loan for Taiwanese notebook casings maker Ju Teng International.

China Everbright Bank has hired four firms to arrange meetings with fixed income investors ahead of a planned dollar-denominated offering.

Aluminum Corporation of China (Chalco) priced a larger-than-planned $800m deal on Thursday, taking advantage of strong investor interest that led to a 10x covered book.