HONG KONG, Jan 6 (IFR) - Asian credit markets wrapped up a constructive week with investment-grade and high-yield names benefiting from a strong bid to start the year.
The iTraxx Asia ex-Japan IG index was spotted 2bp tighter at 112.25/114.25. Constituent CDS, such as China and Malaysia, were 2bp and 3bp tighter, respectively. The index was a full 7bp tighter for the week.
China Aoyuan Property Group’s new 2020s maintained their rally and were up another fifth of a point to a bid of 100.701 according to Tradeweb. The B3/B-/BB- rated bonds were issued at par on Wednesday.
The sovereign segment was also bid well. Philippines 2026s were over half a point higher, while Indonesia 2027s were up almost a full point before closing the session about a quarter of a point higher.
Syndicate bankers are convinced that the primary market will be busier next week, with more of the market back from holidays and a constructive tone supporting new issuers.
Issuers will also look to get transactions done ahead of the January 20 US presidential inauguration and the Chinese New Year holidays during the last week of the month. (Reporting by Spencer Anderson; editing by Dharsan Singh)