SINGAPORE, Jan 5 (IFR) - Asian credits were firm as buyers
returned from their December holidays to put cash to work.
Credit spreads were tighter on the support of gains in the
regional stock markets.
The iTraxx Asia investment-grade index was about 2.5bp
tighter at 114bp/116bp on a similar narrowing in some of the
more liquid sovereign benchmarks, such as China and Indonesia.
The Philippines saw its 5-year CDS pull in nearly 4bp to
Asian high-yield bonds were firmer, with China Aoyuan
Property Group's newly priced 2020s surging half to
three-quarters of a point. The notes, Asia's first high-yield
issue of the year, priced at par with a yield of 6.35%.
"I see a lot of buyers in the market for high-yield paper,
though there was a bit of short-covering, but the sense from
these guys is that there will not be a big sell-off in January,"
said one trader.
"Fundamentally, the picture has not changed and there are
still a couple of headline risks."
Yingde Gas 2020s performed marginally better today with
quotes around 86.75, after dropping one point yesterday, but
still well below 89.25 indicated on January 3.
The company repaid a HK$820m bank loan due on January 3
using a new offshore bank facility secured against onshore
Market players will keep a close eye on January 10, when a
board meeting is due to be held.
(Reporting by Kit Yin Boey; editing by Dharsan Singh)