November 16, 2017 / 8:01 AM / a year ago

ASIA CREDIT CLOSE: Sell-off in HY credits eases in weak market

SINGAPORE, Nov 16 (IFR) - Asian high-yield credits continued to soften today but at a slower pace than earlier in the week.

The ongoing weakness was prompted by overnight losses on Wall Street. Traders said high-yield credits weakened about a quarter of a point today but trade flows were still heavy.

WTT Investment’s 5.5% 2022s were slightly lower than yesterday’s 100.45 to around 100.3, but still above reoffer at par.

Guangzhou R&F’s 5.875% 2023s were also down to 98.7/99.00 from yesterday’s 99.25, while Xinyuan Real Estate’s 8.875% 2020s were trading under water at 98.75/99.25 against reoffer at 99.357.

Indika Energy’s 2024s, which had performed strongly soon after pricing in early November at 98.594, were hurt by the lower appetite for risk and were trading around 97.5/98.1.

This was despite being on review for an upgrade to Ba3/B+ by Moody’s and Fitch.

Asian credit spreads were about 2bp wider in the morning with the iTraxx Asia ex-Japan IG index at 81bp-83bp, but the index rebounded marginally to 80bp/81bp by mid-afternoon.

CDS for China pushed out 1.5bp, although at one point it was as wide as 3bp.

Reporting by Kit Yin Boey; Editing by Vincent Baby

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