Issuance seen from Dubai Islamic Bank, Hong Kong, CIFI, others; risk-off mode in effect

By Christine Van Dusen

Atlanta, May 27 – Dubai Islamic Bank PJSC, Hong Kong, China’s CIFI Holdings (Group) Co. Ltd., China’s Fantasia Holdings Group Co. Ltd. and Garuda Indonesia (Persero) Tbk were among the issuers to print notes on Wednesday against the backdrop of a strong dollar and a Greece-inspired flight to quality.

“Asian markets saw some sellers out of New York and no buyers of the small dip to take the other side of the trade, leaving the high-grade space 2 basis points to 5 bps wider,” a London-based trader said.

Real-money accounts from Asia were mostly sidelined on Wednesday, amid the widening, but European accounts “took this as an opportunity, and the market bounced off the lows,” he said.

The curve for China-based Cnooc Ltd. closed Wednesday wider by 5 bps, with good two-way flow seen for the company’s 2024s, he said.

Most investment-grade names from Asia were “generally stable, with Korea unchanged with buyers in the short end, India a couple basis points wider and Malaysia 1 bp to 3 bps wider on light flow,” he said.

Among high-yield names, property companies moved 1/8 point to 3/8 point lower on Thursday, he said.

Looking to Latin America, trading was quieter than on Tuesday and felt “a little sluggish,” a New York-based trader said.

© 2015 Prospect News.
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