December 18, 2017 / 9:45 AM / a month ago

ASIA CREDIT CLOSE: CDS index at 52-week tight

HONG KONG, Dec 18 (IFR) - Activity was muted in Asian credit trading, but sentiment still held up with the region’s CDS reaching new tights.

The iTraxx Asia ex-Japan investment-grade CDS index reached a 52-week tight at 69bp/70bp, according to Thomson Reuters data.

A credit analyst said investors drove the index tighter after unwinding shorts, but the levels also reflected constructive appetite for Asian credit.

High-yielding perpetuals such as Postal Savings Bank of China’s 4.5% AT1s and Li & Fung’s US$650m 5.25% saw two-way flow from real money and private banks, although prices remained unchanged at cash price bids of 98.35 and 92.875 respectively, according to Thomson Reuters data.

However, Li & Fung’s 6% perps were down more than half a point to 100.38.

Indika Energy’s bonds rose slightly amid a quiet backdrop for high-yield paper. The Indonesian coal producer’s 5.875% 2024s were bid almost half a point higher from last week at 100.25/101.25.

Reliance Industries’ US$800m 3.667% 2027s, the tightest 10-year US dollar bond from India’s corporate sector at the time of pricing in November, dropped two-tenths of a point to 98.95/99.36, according to Thomson Reuters data.

Reporting by Frances Yoon; Editing by Vincent Baby

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