HONG KONG, Nov 17 (IFR) - Asian credits saw some recovery on Friday after recent softening while Indian credits gained after Moody’s lifted the nation’s sovereign rating to Baa2 from Baa3.
Investment-grade credits generally traded around 1bp-2bp tighter while high-yield credits rebounded, ranging from 0.25 points to 0.75 points, according to a Hong Kong-based trader.
The iTraxx Asia ex-Japan IG index was 2bp tighter at 77.3bp/78.3bp.
Moody’s has upgraded a batch of Indian banks and companies after its rating action on the sovereign.
Export-Import Bank of India’s 3.375% 2026s tightened 10bp today to 136bp.
CreditSights reiterated its broad “market perform” view on the Indian bank complex as it has already outperformed this year with most bonds trading tight or fair relative to the Asia Pacific fair value curve.
For corporates, CreditSights expects Indian state-owned enterprises to benefit the most from the rating upgrade, since their ratings are closely linked to the sovereign’s.
The research firm expects the spreads of Indian SOEs to pull in tighter broadly by about 20bp.
The only new issue priced last night, China Jianyin Investment’s debut bonds, traded weak.
The 3.00% 5-year US dollar notes were 5bp wider and the 3.50% 10-year US dollar notes 3bp wider, from their reoffer spreads of 97.5bp and 125bp wide of Treasuries, respectively.
Reporting by Carol Chan; Editing by Vincent Baby