This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
US markets rebounded, making up most of Monday’s losses as the S&P and Nasdaq gained 1.5% and 1.6% respectively. Industrials and Financials led the charge and were up 2.7% and 2.4%. Real Estate, Consumer Discretionary, IT, Energy, Materials, Healthcare and Communication Services were up more than 1%. Earnings reports continued with Netflix, UBS and United Airlines reporting their quarterly numbers (scroll down for details). US 10Y Treasury yields were flat at 1.21%. European indices also climbed more than 0.5% – CAC was up 0.8% and DAX and FTSE were up 0.5% each. US IG CDS spreads tightened 1.6bp and HY tightened 5.1bp. EU Main and Crossover spreads tightened 0.1bp and 1.45bp respectively. Brazil’s Bovespa was up 0.8%. Gulf markets remained closed for Eid and oil prices remained sub $70/bbl. A Chinese Finance Ministry official said that China’s fiscal revenue growth is likely to slow significantly in the second half. Asian markets were upbeat – Nikkei was up 1.4% and Shanghai, HSI and Singapore’s STI were up between 0.2%-0.6%. Asia ex-Japan CDS spreads were 1.7bp wider.
Navigating The Bond Markets by Leveraging the BEV App | July 28
New to the BondEvalue App? We will be conducting a complimentary session on Navigating The Bond Markets by Leveraging the BEV App on July 28, 2021. This session is aimed at helping bond investors in tracking their investments using the BondEvalue App. Click on the banner below to register.
China Grand Automotive $ 2.5Y final 9.75%, alongside tender offer
Chalco $ 3Y/5Y bonds at T+170bp/T+185bp areas
CSSC (Hong Kong) Shipping capped $500mn 5Y green bonds at T+185bp area
NongHyup Bank $ 3Y/5Y social bond at T+80bp/T+90bp areas
Jiangsu Century New City Investment Holding 364-day $ notes final at 6.5%
Bank of New York Mellon (BONY) raised $1bn via a two-trancher. It raised $500mn via a 5Y bond at a yield of 1.065%, ~14.5bp inside initial guidance of T+50/55bp area. It also raised $500mn via a 10Y bond at a yield of 1.8%, ~14.5bp inside initial guidance of T+70/75bp area. The bonds are rated A1/A/AA-. Proceeds will be used for general corporate purposes.
Wells Fargo raised $1.25bn via Perpetual non-call 5Y (PerpNC5) depositary shares at a yield of 4.25%, ~18.75bp inside initial guidance of 4.375%-4.5% area. The securities have expected ratings of Baa2/BB+. The depositary shares each represent a 1/1,000th interest in a share of Non-Cumulative Preference Shares, Series DD and were at an offer price of $25 per depositary share. The bonds are callable at $25 per depositary share (a) in whole or in part, from time to time, on any dividend payment date on or after 15 September 2026 (b) in whole but not in part before 15 September 2026 upon the occurrence of a “regulatory capital treatment event”. Proceeds will be used for general corporate purposes including but not limited to, the redemption of some or all of one or more series of Wells’ outstanding preferred shares and related depositary shares.
Shandong Iron & Steel Group hires for $ unrated bonds; calls today
China Citic Bank International hires for $ PerpNC5 AT1; calls today
Ping An Real Estate hires for $ green bonds; calls today
Guangzhou Industrial Investment Fund hires for $ bond; calls start today
Moody’s downgrades Japan Tobacco to A2; changes outlook to stable
Catastrophe Bonds also referred as Cat Bonds are risk-linked securities that are designed in favor of the issuer as these allow the transfer of risks related to a major catastrophe or a natural disaster to the investors. These are generally high yield debt instruments that payout to issuers in case of specific triggers. These bonds essentially act as insurance policies against natural disasters and are generally purchased by governments, insurance and reinsurance companies. In the event of a trigger event, the proceeds are paid to the borrower and the principal repayment and interest payments are either deferred or cancelled. In case the trigger event does not occur, the borrower continues to pay the interest and the principal as scheduled, similar to a regular bonds. These bonds gained traction after the frequency of natural disasters were on the rise.
The World Bank reported that it priced a Cat Bond that will provide Jamaica with financial protection of up to $185mn against losses from named storms for three Atlantic tropical cyclone seasons ending in December 2023.
On protecting bond funds against inflation