January 22, 2018 / 9:17 AM / a year ago

ASIA CREDIT CLOSE: Credit steady amid US shutdown; Noble Group rises

HONG KONG, Jan 22 (IFR) - Asian credit markets did not show major signs of strain even as the US government shutdown headed into its third day.

The Asia ex-Japan investment-grade CDS index was trading 2bp tighter at 63bp/63.75bp, according to Thomson Reuters data. Senate negotiators failed to reach an agreement late on Sunday to restore federal spending authority.

Korean CDS spreads from the likes of KEB Hana Bank and KT Corp’s were 5bp-7bp wider, while Singaporean bank CDS spreads narrowed about 1bp.

Noble Group’s 8.75% 2022s were steady after Bloomberg reported that Chinese conglomerate Cedar Holdings Group is interested in buying the troubled Singapore commodities trader, citing people familiar with the matter.

The bonds have been bid 3.25 points higher since mid-January. Noble took note of Monday’s Bloomberg article and said it continued to be in talks with “various potential strategic parties and its creditors”.

China South City and Cifi Holdings’ bonds were trading around reoffer ahead of a batch of offshore offerings from Chinese property developers, which bankers said were currently eyeing windows in primary markets.

China’s NDRC announced last week that Greenland Holdings had received approval to issue offshore bonds. Greenland Global Investment’s US$500m 4.85% 2020s were trading at a 4.87% yield.

Those bonds have widened since reaching 4.5% last November, the tightest since the deal was issued in August 2017.

Reporting by Frances Yoon; Editing by Vincent Baby

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