HONG KONG, May 12 (IFR) - Asia credit markets were slightly
tighter on Friday, though the price of Noble Group's US dollar
notes slumped on rising worries over its ability to service
"The market was stable today with most investment-grade
names slightly firmer," said a Hong Kong-based credit trader.
The iTraxx Asia IG index was little unchanged at 88.5bp/89.5bp.
New issues were traded above par. The new perps of Cheung
Kong Property Holdings were bid at 100.15 and the fresh AT1s of
Bank of East Asia were quoted at 100.5/100.8, according to
The high-yield sector was mostly resilient with Huachen
Energy's new 2020s bid at 100.25, traders said.
However, Noble Group's US$750m 8.75% 2022s plunged to
52.9/55.83, after closing at around 70 on Thursday, according to
Tradeweb. The notes had been trading at par one month earlier.
The commodity trader reported a loss of US$129.3m for
January-March quarter in its latest setback during a
crisis-racked two years, despite deep restructuring.
"In particular, losses in Nobel's core business raised
doubts on the prospect of its profitability," said a Hong
Kong-based credit analyst.
"In my view, there is still room for Nobel's notes to fall
further in price."
(Reporting by Ina Zhou; editing by Dharsan Singh)