August 30, 2017 / 9:06 AM / a year ago

ASIA CREDIT CLOSE: China HY rallies, while Korean fears subside

SINGAPORE, Aug 30 (IFR) - Chinese high-yield bonds were seen a quarter of a point higher today in hectic trading.

“Everything is higher,” said a credit trader. “Real money and private bank investors are chasing paper.” The trader put the demand down to cash-rich investors needing to deploy their funds, with Asian primary issuance having slowed.

Agile Property’s 2022 bonds, priced at par earlier this month, were bid slightly higher at a cash price of 101.7, while eHi Car Services’ 2022s rose a fifth of a point to 101.6.

South Korean sovereign 5-year CDS tightened around 2bp today after a spike early this week in response to North Korea’s missile launch over Japan. The CDS was seen at 61bp mid today, having closed at 63bp yesterday.

The Asia ex-Japan iTraxx investment-grade index also tightened overnight, at 77.2bp mid, around 3bp tighter. That brought it near to the Monday close of 76.5bp mid.

Cheung Kong Infrastructure’s recent perpetual bond issue was a third of a point higher today, recovering to a cash price of 99.5 and yield of 4.9%, but that was still below the issue price of par.

Great Wall Asset Management’s 5-year and 10-year bonds tightened 3bp to Treasuries plus 143bp and 183bp, respectively, while its 3-year notes were 1bp tighter at a spread of 137bp.

Reporting by Daniel Stanton; Editing by Vincent Baby

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