HONG KONG, Sept 8 (IFR) - Asian credit markets continued on a constructive path on Friday with investors digesting new notes printed earlier this week.
Still, Mongolia’s sovereign US dollar notes took a hit after the country’s parliament voted to oust the prime minister late on Thursday.
Its 2022s fell 0.462 cents to 97.538 in cash price, the biggest decline since July. Its 2021s lost 0.270 cents to 117.729, according to Tradeweb data.
Bank of Communications’ US dollar notes traded up, though Moody’s downgraded the lender on Thursday, citing the impact of higher funding cost on profitability. BoCom’s 4.5%2024s gained 0.1 points to 103.20 in cash price.
“Moody’s move had been expected since May, when the agency initiated a review for downgrade on the credit,” said a Hong Kong-based credit analyst, “Yes, people were talking about the downgrade, but we haven’t seen any price correction yet.”
The iTraxx Asia investment-grade index was little changed at 78.6bp/79.4bp.
Weichai’s new perps softened 0.125 points, while Sinopec’s new four-tranche offering of dollar notes traded slightly above reoffer prices across the board.
Reporting by Ina Zhou; Editing by Dharsan Singh