HONG KONG, May 23 (IFR) - Asian credits were largely stable
on Tuesday, despite a suspected terrorist attack in the UK.
The iTraxx Asia investment-grade index was flat at
"IG credits were mostly unchanged, but high-yield issues
were generally weak," said a Hong Kong-based trader.
New issues put in mixed performances as Metallurgical
Corporation of China's 2.95% 3-year bonds were trading 10bp
tighter in the morning, but gave back some gains later and were
around 3bp tighter in the afternoon, the trader said.
Hong Kong property developer Nan Fung's 5.50% perpetual
non-call 3 notes, however, fell 2 points to bid at 98.
Recent fixed-for-life perp issues from Cheung Kong Property
and Sun Hung Kai Properties also faced selling pressure and were
both trading below reoffer levels.
"There have been too many perps from Hong Kong developers in
recent weeks, and the fixed-for-life structure is not investor
friendly," said one investor.
In the high-yield segment, Hsin Chong Group's bonds plunged
after the Hong Kong-based construction company missed a coupon
payment of US$13.125m due on May 18 on its US$300m 8.75% senior
notes, maturing on May 18 2018.
Its 2018s fell 10 points to 40, while its 2019s retreated 5
points to 45, according to the trader.
Embattled commodity trader Noble Group's bonds continued to
see selling pressure after S&P lowered its long-term corporate
credit rating to CCC+ from B+ with negative outlook. Noble's
2022s fell around 2 points to 43.
Reliance Communications' 2020s fell 3 points to 85 on
reports that the Indian telecom operator is months late in
servicing some of its loan facilities.
(Reporting by Carol Chan; editing by Dharsan Singh)