June 16, 2017 / 8:41 AM / 3 months ago

ASIA CREDIT CLOSE: Credit wider and new issues weaker

HONG KONG, June 16 (IFR) - Asian credit markets were marginally wider today as new issues had lacklustre performances.

Traders said credit spreads were in general 1bp-2bp wider in the investment-grade segment, partly driven by profit taking.

“Recent better-than-expected US economic data and further Fed rate hikes down the road have prompted some to take profits now,” said a Hong Kong-based credit trader.

The Asia ex-Japan iTraxx investment-grade index was little changed at 83bp/84bp.

Chinese oilfield equipment and services provider Hilong Holding’s new 2020s were quoted at 98.5/98.9 after being reoffered at 99.390.

Hainan Airlines’ US$300m 364-day notes, priced at par on Thursday, were bid at 99.87 in cash price.

Greenland Holding Group’s US$500m 363-day notes were spotted around reoffer price.

Property developer Fantasia’s 5.5% 2018 notes were bid at 100 in cash price after hitting 100.15 on Tuesday.

Oil and gas producer MIE Holdings’ 7.5% 2019s were bid at 54.62 in cash price, down about 1.5 points since last Friday.

Fitch and S&P have cut MIE’s issuer rating after the company announced a cash tender offer for its senior unsecured notes due 2018 and 2019. The offer is seen as distressed exchange by the two rating agencies.

Reporting by Ina Zhou; Editing by Vincent Baby

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