November 9, 2017 / 9:06 AM / 9 months ago

ASIA CREDIT CLOSE-High grade slips as investors take profits

SINGAPORE, Nov 9 (IFR) - Investment grade bonds edged wider as fatigue set in and investors cut risk.

“It’s getting towards the end of the year and people are taking profits,” said a credit trader. “People are just expecting some kind of correction.”

The Philippines and Indonesia saw some selling in their sovereign bonds. The Philippines’ 2024 bonds widened 1bp to 2.58%, and Indonesia’s 2022s moved out 2bp to 2.91%.

Alibaba’s 2021 bonds were bid at Treasuries plus 87bp today, widening 2bp, ahead of Singles Day on Saturday, the world’s biggest online shopping festival. CDB Leasing’s recent 2023 bonds widened 2bp to Treasuries plus 120bp.

“People are tired of new issues,” said the trader. “At one point it looked like China was going to slow the number of new offshore issues, but then they turned the printer back on.”

The Asia ex-Japan iTraxx investment grade CDS index was little changed at 78bp/79bp.

Reliance Communications’ 2020 bonds dropped a point today to a cash price of 38.4, implying a yield of 46.8%, after it missed a coupon earlier this week.

Reporting by Daniel Stanton; Editing by Vincent Baby

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