Renewed Trade Tensions Trigger Risk-Off in Bonds
Renewed trade tensions coupled with neutral commentary from the Fed Chair, after the FOMC cut interest rates by 25 basis points, triggered a move towards safer assets globally in the early days of August. US President Trump imposed tariffs on an additional US$ 300...
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Fed Certainly Uncertain – Cuts Rates by 25bps
The U.S. Federal Reserve cut interest rates for the first time in more than a decade on Wednesday 31 July, citing “implications of global developments for the economic outlook as well as muted inflation pressures”. Fed Chairman Jerome Powell said the cut was to...
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Indonesian Textile Bond Default Highlights Risks in Asian Junk Bonds Market
Delta Merlin Dunia Textile (DMDT), an Indonesian textile manufacturer within the Sumitro family's Duniatex group, had its bonds plummet by nearly 67 cents on the dollar last week in a shocking sell-off prompted by a missed loan payment by another group subsidiary....
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Transition Bonds – Helping Polluters Turn Green
As a supplement to our 16th July article on Green Bonds, we introduce a relatively new concept that's fast gaining traction in the 'green' credit field - transition bonds. What are transition bonds and who issues them? A new class of bonds, transition bonds, are aimed...
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Green Bonds – Everything You Need to Know
What are green bonds? Green bonds are different from conventional bonds in their use of proceeds - they are to be exclusively used towards financing or re-financing ‘green’ projects, such as to develop renewable energy technologies or to mitigate climate changes. In...
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Dovish Central Banks Drive Up Demand for HY Bonds
While the month of May saw bond investors flock to safer assets amid trade tensions, June was characterized by a return to riskier assets on the back of a dovish stance by major central banks. The Fed signaled a possibility of a rate cut during the FOMC meeting on...
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India Plans to Issue Debut Foreign Currency Debt Before the End of 2019
India plans to raise as much as $10 billion, about 10-15% of the country's total borrowing, from its first overseas sovereign bonds in the second half of 2019. The foreign offering will leverage on the currently huge appetite for India's local debt in the foreign...
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Future Land Founder Detained, Prompting Sell-Off in Bonds
Future Land Development Holdings Ltd's 57-year-old founder Wang Zhenhua has been detained by Shanghai police, triggering an exodus from the property developer's bonds. The Company reported in an exchange filing late on 3 July that their billionaire founder and...
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Market Predicts 100% Chance of a Rate Cut in July
Despite the Federal Open Market Committee voting 9-1 to keep the benchmark interest rate in a target range between 2.25 and 2.5%, traders in the fed funds futures markets came in with big bets on the Federal Reserve cutting interest rates aggressively in the months...
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