US STOCKS SNAPSHOT-Wall St ends little changed ahead of holiday
NEW YORK, May 26 U.S. stocks ended little changed on Friday ahead of a holiday weekend, though major indexes snapped a two-week streak of losses.
HONG KONG, May 19 (IFR) - Asia credit markets were little changed on Friday with Chinese property developers softer on news of rating downgrades and concerns over policy tightening by mainland regulators.
"The market stabilised today after sell-offs yesterday, but no big inflows were seen," said a Hong Kong-based credit trader, noting that uncertainties over political turbulence in the US would persist.
The iTraxx Asia investment-grade index was flat at 91bp/93bp. New issues were softer. Sinochem's new 2022s widened 3bp, while BOC Aviation's new 2022s were bid at 5pb wider than the reoffer price.
Chinese developers also traded lower amid worries that mainland regulators would restrict their offshore debt financing in a bid to curb rises in property prices.
Logan Property's newly issued 5.75NC3 notes was below water at 97.424/97.854. "Logan's pricing was set very tight, plus, investors were concerned about its aggressive land purchases," said a credit analyst.
Yuexiu Property's 2023s widened 50bp after S&P downgraded its long-term corporate credit rating to BB+ from BBB-.
KWG's 2017s also widened about 50bp to 4.48% after S&P lowered its credit rating to B+ from BB-.
The Hong Kong-based trader noted that Baidu's US dollar 2026s had widened 6bp-7bp since Moody's put its A3 ratings on review for downgrade on Monday on concerns over "the fast-growing state of its finance business, which has higher financial and execution risks when compared with its core businesses".
(Reporting by Ina Zhou; editing by Dharsan Singh)
* Dow flat, S&P up 0.02 pct, Nasdaq up 0.03 pct (Updates to late afternoon)