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ASIA CREDIT CLOSE: HY softens in active trading, but IG credits firm up
November 28, 2017 / 8:35 AM / 18 days ago

ASIA CREDIT CLOSE: HY softens in active trading, but IG credits firm up

SINGAPORE, Nov 28 (IFR) - Asian high yield was softer, as more supply continued to come out, but trading remained active despite expectations that liquidity would have dried up after Thanksgiving.

“High yield is broadly going lower,” said a credit trader. “It’s across the space, and everything is trading.”

EHi Car Services’ 2022 bonds dropped after the Chinese car rental company announced that it had received a takeover offer from Goliath Advisors. The bonds dropped nearly a point to a cash price of 101.6. They have a change of control put at 101.

Investment-grade credits strengthened, with China’s sovereign 2027 bonds tightening 4bp to Treasuries plus 31bp, ahead of a planned Dim Sum offering this week.

The Asia ex-Japan iTraxx investment grade CDS index was 1.5bp tighter at around 73bp/74bp.

Alibaba Group’s 2024 bonds widened nearly 2bp to Treasuries plus 95bp, ahead of a new US dollar offering that could come as soon as tomorrow. Its 2021 notes tightened 1bp to Treasuries plus 88bp.

Qingdao City Construction’s 2022s were steady today at Treasuries plus 213bp, having priced last week at Treasuries plus 220bp.

Reporting by Daniel Stanton; Editing by Vincent Baby

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