February 6, 2018 / 9:10 AM / a year ago

ASIA CREDIT CLOSE: Investors take advantage of choppy markets

HONG KONG, Feb 6 (IFR) - Investors chased opportunities to buy on dips during a volatile session that tracked a sell-off in Asian equities and large declines on Wall Street.

The Asia ex-Japan investment-grade CDS index settled down to 71bp/72bp by the end of the Asia trading day, from 64bp/65bp yesterday, while the Nikkei and ASX 200 closed down 4.7% and 3.2% respectively.

BOC Aviation’s 3.5% 2023 were up a third of a point to 99.6/99.83, while Tencent’s 3.925% January 2038s jumped half a point to a cash price of 96.5/97.1, recouping part of a two-point loss since Thursday.

Sunny Optical’s 3.75% 2023s were a third of a point higher at 99.5/99.8, according to Tradeweb.

Kasikornbank pared morning losses and was trading four-tenths of a point higher in the afternoon at 98.9/99.2, according to Tradeweb.

“It’s still a very choppy session,” said a Singapore-based credit trader.

The Asia ex-Japan investment-grade CDS index has widened to its weakest point so far this year, with spreads blowing out to as much as 74.5bp on a bid this morning, according to Thomson Reuters data, driven by a 7bp spike in CDS spreads from Malaysia, Indonesia and the Philippines.

Chinese high-yield property names such as Country Garden’s recent 4.75% 2023s were unchanged but Hankook Tire’s 3.5% 2023s were two-tenths of a point lower at 99.3/99.6, according to Tradeweb.

Reporting by Frances Yoon; Editing by Vincent Baby

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