September 15, 2017 / 8:16 AM / a year ago

ASIA CREDIT CLOSE: Asian credits steady, despite firing of new missile

HONG KONG, Sept 15 (IFR) - Asian credits held steady on Friday as investors reacted calmly to the news of the firing of another North Korean ballistic missile over Japan.

“The markets have got used to this kind of news and didn’t react too much. Overall, trading was relatively thin,” said a Hong Kong-based trader.

The iTraxx Asia investment-grade index was little changed at 73.9bp/74.7bp.

Korean sovereign 5-year CDS widened nearly 2bp to 68.4bp/69.4bp. However, Korea National Oil Corp subsidiary Harvest Operations Corp’s newly priced US$285m 3.0% 2022s traded 2bp tighter than reoffer of 127.5bp.

Red Star Macalline’s newly priced US$300m 3.375% 2022s, which priced 35bp tighter from initial guidance, saw some selling pressure due to tight pricing, the trader said.

The bonds traded 7bp wider in the early morning, but recouped some losses later and were 2bp wider versus reoffer of 170bp in the afternoon.

Meanwhile, Cifi Holdings’ 5.375% perps rose 0.05 point to bid at 100.1 after Fitch today upgraded the Chinese property developer’s rating to BB from BB- on its enlarged scale and enhanced credit profile.

ENN Energy’s 3.25% 2022s fell 0.02 point to bid at 100.78 on news that company CFO Chau Tien Hsiang had resigned for “family reasons”. Chau was the second CFO to resign this year.

Bank of Qingdao’s unrated AT1s were flat at 100.00/100.25, ahead of more new AT1s supply from the China banking sector.

Reporting by Carol Chan; Editing by Dharsan Singh

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