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ASIA CREDIT CLOSE: Credit flat to tighter, while Wanda stirs up HY
July 10, 2017 / 8:32 AM / 5 months ago

ASIA CREDIT CLOSE: Credit flat to tighter, while Wanda stirs up HY

SINGAPORE, July 10 (IFR) - Asian credit was flat to tighter today, despite the rise in Treasury yields on Friday following better-than-expected US non-farm payrolls data and the resulting expectations that some widening would ensue elsewhere.

“In the bond market, payrolls have been a non-event,” said a credit trader.

The Asia ex-Japan iTraxx investment-grade index was unchanged at 88bp/89bp, while Korean sovereign 5-year CDS widened 2bp to 60bp/62bp.

In investment-grade corporate credit, Adani Ports’ 2027 bonds tightened 1bp to Treasuries plus 175bp, while Korea East-West Power’s 2022s tightened by the same amount to 95bp over. Baidu’s 2022 notes tightened 6bp to a Treasury spread of 103bp.

Dalian Wanda’s 2024 bonds gained half a point to a cash price of 106, after it said it had agreed to sell 76 hotels and majority stakes in 13 culture and tourism projects to Sunac China Holdings for Rmb63.2bn (US$9.3bn).

In response, Sunac’s 2019 bonds fell half a point to a cash price of 104.5.

“This will take a while for investors to digest,” said the trader. “It’s a big deal and a lot of money.”

Chong Hing Bank’s 2020 bonds widened 10bp to Treasuries plus 210bp after it warned on Friday that it expected first-half profits to be down 16% from a year ago, due partly to an increase in impairments.

Reporting by Daniel Stanton; Editing by Vincent Baby

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