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HONG KONG, June 9 (IFR) - Asian credits held steady on Friday, even though the outcome of the UK election suggests the country face a hung parliament, which may throw it into a fresh political turmoil.
"The (Asian) credits market was immune to British election news so far, despite volatility in pound and gilt yields because Prime Minister Theresa May's Conservative party lost its majority in the election," said a Hong Kong-based trader.
"The market is very quiet, partly due to weekend."
Rick Mattila, international head of research at MUFG, said some risk aversion in developed markets might even prove to be a positive for Asian credit, "given its current status as a relative safe haven".
Investment-grade credits were flat with the iTraxx Asia IG index almost unchanged at 85.3/86.3.
New perpetual notes from financial services company AMTD Group and insurer FWD, which priced overnight, both fell around 0.5 points from their reoffer levels.
AMTD priced the US$200m 7.625% senior perpetual non-call three securities at par, while FWD priced the US$500m subordinated perpetual fixed-for-life zero-coupon non-call five securities at a cash price of 72.189 to yield 6.625%.
Far East Horizon's 4.35% perpetual notes fell around 0.25 points to 100.75/100.85 today, after gaining as much as 1 point yesterday.
In the high-yield area, MIE Holdings' bonds surged around 5 points to a cash price of 60 after it announced plans to buy oil-and-gas exploration and production assets in Canada.
Pakuwon's 5.00% 2024s were steady at bidding at 99.545 even after Fitch revised the Indonesian property developer's BB- rating outlook to positive from stable last night.
Fitch expects the group's investment property portfolio to keep improving, while its development property risk remains manageable.
Chinese property developer Fantasia's 364-day 5.50% bonds were flat at 100.2, yielding around 5.3%.
Reporting by Carol Chan; editing by Dharsan Singh