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ASIA CREDIT CLOSE: Commodities rebound supports some in soft market
September 1, 2015 / 8:38 AM / 2 years ago

ASIA CREDIT CLOSE: Commodities rebound supports some in soft market

SINGAPORE, Sept 1 (IFR) - Chinese growth fears may continue to weigh on the market, but a rebound in commodity prices is benefiting a select few Asian credits.

Outstanding 5-year bonds from CNOOC, Sinopec and Petronas tightened around 3bp-4bp on a strengthening of oil prices.

Asian investment-grade credit widened further today, with the regional iTraxx index out 3bp at 136bp/138bp. The Australian and Japanese versions widened 4bp and 3bp, respectively.

High yield was around a quarter of a point lower, but there was still a firm bid. Agile Property’s 2017s were 0.25 points lower at 99.25/100.25.

China Hongqiao Group’s bonds dropped 2 points after S&P downgraded it today to BB- from BB, due to the aluminium-product maker’s aggressive capital spending.

Maoye International Holdings’ 2017s were flat at 95, having dropped 3 points since mid-August.

S&P also downgraded Maoye yesterday to BB- from BB, citing higher refinancing risk over the next 12 months as the department-store operator deals with short-term maturities.

Shanshui Cement’s 2020 bonds were unchanged today at 91/92, having dropped 1.5 points yesterday after it reported a first-half loss.

daniel.stanton@thomsonreuters.com

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