Navigating The Bond Markets by Leveraging the BEV App
New to the BEV App? BondEvalue will be conducting a complimentary session on Navigating The Bond Markets by Leveraging the BEV App on June 23, 2021. This session is aimed at helping bond investors in tracking their investments using the BondEvalue App.
New Bond Issues
eHi Car Services tap of $ 7.75% 2024s IPG 7.2% area, alongside tender offer
Wipro $ 5Y benchmark Yankee IPG T+110 area
Gajah Tunggal $ 5NC2 bond IPG 9.375% area
Macquarie Group $2.25bn via a three-trancher. It raised:
- $950mn via a 6.25NC5.25 bond at a yield of 1.629%, 25bp inside initial guidance of T+105bp area
- $300mn via a 6.25NC5.25 Floater at a yield of SOFR+92bp as compared to initial guidance of SOFR equivalent
- $1bn via a 11NC10 bond at a yield of 2.691%, 24bp inside initial guidance of T+140bp area.
The bonds are unrated and received orders over $5.7bn, 2.5x issue size. The group is rated A3/BBB+/A-.
China Aoyuan Group raised $200mn via a 3Y non-call 2Y (3NC2) bond at a yield of 8.25% unchanged from initial guidance of 8.25% area. The bonds have expected ratings of BB, and received orders over $1bn, 5x issue size. Proceeds will be used for debt refinancing. Final pricing was wider than the 7.7% fair value estimate calculated by CreditSights, referencing Aoyuan’s 6.35% 2024s and 5.98% 2025s. The bonds were priced at a new issue premium of 19bp over its existing 6.35% 2024s callable in February 2023 yielding 8.06%.
Dubai Aerospace raised $1bn via a 3Y bond at a yield of 1.74%, 35bp inside initial guidance of T+175bp area. The bonds have expected ratings of Baa3/BBB-. DAE Funding is the issuer and DAE is guarantor and is issued off DAE’s global medium term note programme.
Dubai Islamic Bank (DIB) raised $1bn via a 5Y Sukuk at a yield of 1.959%, 25bp inside initial guidance of T+135bp area. The bonds received orders over $2.8bn, 2.8x issue size.
New Bond Pipeline
- Turkey hires for $ 5Y Sukuk
Sino-Ocean Capital Holding hires for $ bonds; calls today
- Moody’s upgrades INEOS Enterprises to Ba3; outlook stable
Moody’s changes outlook on Deutsche Telekom to stable from negative
- Fitch Downgrades Washington Prime Group to ‘D’
- Fitch Affirms Hidrovias’ Ratings; Revises LC IDR and National Scale Rating Outlook to Stable
- Brazilian Airline Gol Outlook Revised To Stable From Developing By S&P On Improved Liquidity, ‘CCC+’ Ratings Affirmed
- Padagis LLC Assigned ‘B’ Rating By S&P Following Spin-Off From Perrigo Co. PLC; Outlook Stable
Moody’s affirms First Capital REIT’s Baa3 senior unsecured debt; revises outlook to negative
Term of the Day
Yield To Worst
Yield to worst (YTW) is a useful metric to track and compare bonds that have a call option. For non-callable bonds, there is a single measure of yield i.e. yield to maturity (YTM). Callable bonds have an additional measure of yield called yield to call (YTC), which calculates the bond’s yield with the assumption that the bond will be called on the bond’s call date. YTW is the lower of YTM and YTC, making it the conservative measure of yield.
The Bloomberg Barclays HY Index YTW fell to a new record low of 3.84%.
On the view that bank dividend restrictions should be lifted soon – Andrea Enria, European Central Bank Supervisory Board Chairman