March 31, 2017 / 8:18 AM / 10 months ago

ASIA CREDIT CLOSE: Credit stable in cautious quarter-end

HONG KONG, March 31 (IFR) - Asia credit markets were stable in light trading on Friday as more investors moved to the sidelines at the end of the first quarter.

“The market remained stable after CK Hutchison’s US$1.8bn offering, suggesting that overall sentiment was still supportive,” said a Hong Kong-based credit trader.

“However, flow was not strong as most investors sat on the sidelines at the end of quarter,” he said.

Hong Kong conglomerate CK Hutchison Holdings’ new 2022s were spotted 2bp tighter and its new 2027s were 3bp tighter.

The iTraxx Asia IG index, which has rolled into Series 27, was little changed at 94/95bp.

Fullerton Health’s new US dollar perps were quoted at 100.5/101.

In the high-yield sector, China Evergrande Group’s 9.50% 7-year non-call four senior notes, issued last week, were bid at around 111 in cash price, according to another trader.

China Strategic Holdings disclosed in a filing to the Stock Exchange of Hong Kong on Wednesday night that a subsidiary of the company bought US$50m of Evergrande’s 9.50% 2024s.

Meanwhile, Chinese commodities trading and logistics group Tewoo Group’s new 2020s and 2022s were spotted 20bp tighter as the notes were chased by return-hungry Chinese investors, traders said.

Reporting by Ina Zhou; Editing by Vincent Baby

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