HONG KONG, Jan 3 (IFR) - Asian credit markets were firm on Wednesday, while the notes of Chinese local governments financing vehicles outperformed.
“The overall market sentiment was solid today, particularly, recent US dollar notes issued by Chinese LGFVs, which were in good demand,” said a Hong Kong-based credit trader.
He noted that investors were chasing LGFV notes in the investment-grade sector, issued at the end of last year at attractive prices.
“Perhaps, investors saw relative values in those papers and put in money,” he said.
The iTraxx Asia ex-Japan investment-grade index tightened 0.8bp to 66bp/66.9bp.
Yangzhou Urban Construction State-owned Assets Holding’s 4.375% 2020s were bid at a cash price of 100.91 after being reoffered at 99.892 in mid December.
Chengdu Communications Investment Group’s 2027s were bid at a cash price of 98.557, off of a high of 99.08 yesterday.
Alibaba’s 2.8% 2023s were bid at a cash price of 99.40, slightly up from yesterday’s closing, while its 3.4% 2027s traded slightly wider, being bid at 99.22.
Alibaba-backed Ant Financial said on Tuesday the US government had rejected its bid to acquire US money-transfer company MoneyGram International over national security concerns.
Reporting by Ina Zhou; Editing by Dharsan Singh