This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
US markets witnessed a sell-off on Tuesday as July retail sales declined – Nasdaq and S&P were down 0.9% and 0.7% respectively. Consumer Discretionary, down 2.3% was the worst hit, followed by Materials, Industrials, Communication Services, Energy, IT and Financials, all down more than 0.8% while Healthcare, up 1.1% outperformed. European markets were mixed – FTSE ended 0.4% higher while CAC ended 0.3% lower and DAX was broadly flat. Saudi’s TASI and UAE’s ADX closed higher by 0.6% and 0.9% respectively. Brazil’s Bovespa, down 1.1% continued its downward rally. APAC stocks had a positive start – Singapore’s STI, Nikkei, HSI and Shanghai were up 0.9%, 0.7%, 0.4% and 0.2% respectively even as Chinese regulators issued draft anti-monopoly rules. US 10Y Treasury yields widened 1bp to 1.27%. US IG and HY CDS spreads widened 0.9bp and 6.4bp. EU Main and Crossover CDS spreads widened 0.4bp and 2.2bp respectively. Asia ex-Japan CDS spreads were 0.3bp tighter.
In the US, retail sales in July dropped 1.1% vs. expectations of a 0.3% drop pulling the market sentiment down, with the decline led by automobiles. Sales declined 0.4% excluding automobiles.
If you are a finance professional or investor who would like to learn about bonds from senior bankers, sign up for our upcoming course with Singapore Management University on 26-27 August.
The course is designed for private bankers, relationship managers and advisors, and covers both theoretic concepts as well as real-world examples. SkillsFuture Singapore Funding is available for Singaporeans and PRs. Click on the link below to sign up.
Moody’s withdraws Suncor Energy Ventures ratings for business reasons
Moody’s downgrades Maldives’ rating to Caa1, changes outlook to stable
Subordinated debt refers to any type of debt that rank below senior debts on the capital structure. In the event of liquidation, holders of subordinated debt would only be paid after all the senior debt is repaid. Thus, the ratings and yield of subordinated debt tend to be lower and higher respectively, to account for the greater risk associated with subordinated vs. senior debt. There are different kinds of subordinated debt that can include perpetuals/AT1s, payment-in-kind notes, mezzanine debt, convertible bonds, vendor notes etc. Subordinated debt rank higher to preferred equity and common equity in the capital structure. LMIRT’s 7% Perp is a subordinated bond.
“Investors should make sure it is not just chatter about the taper that they pay attention to.” “Rising economic inequality matters to bonds because it is one of the longer-run structural drivers that has contributed to rates being so low.”
Top Gainers & Losers – 18-Aug-21*