HONG KONG, April 21 (IFR) - Asian credit markets traded on a
constructive note on Friday as new issues rallied on a boost to
overall risk sentiment from Wall Street's solid performance
overnight on strong corporates earnings.
Caution remained, nevertheless, ahead of Sunday's French
Trades were mostly focused on the newly issued bonds of
China Huarong AMC and Want Want China, as spreads of other
investment-grade credits generally were only 3bp-5bp tighter,
according to a Hong Kong-based trader.
The iTraxx Asia investment-grade index was indicated at
99bp/100bp, less than 1bp tighter than Thursday's level.
"Huarong's notes were well bid, especially the floaters,
where we saw big support from bank treasuries," the trader said.
The state-owned distressed debt manager's US$2.97bn
five-tranche US dollar bonds drew final orders of more than
US$13.7bn at final pricing.
Huarong's 3-year floaters traded 30bp tighter and 5-year
floaters were 25bp tighter from the reoffer levels, according to
Its 5-year and 10-year fixed-rate notes traded around 15bp
tighter, while its 30-year fixed-rate notes were bid at 5.375%,
tighter than reoffer yield of 5.50%.
Want Want's newly priced US$500m 5-year US dollar bonds also
traded up, with the spread 11bp-12bp tighter.
In the high-yield segment, China SCE Property's 5.875% 2022s
were quoted at a cash price of 99.413/99.888, according to
The property developer sold an additional US$300m bonds at
99.471 to yield 6% on Thursday.
(Reporting by Carol Chan; editing by Dharsan Singh)