New Bond Issues
- CCB Financial Leasing $ 5Y bonds at T+140a
GF Financial $ 3Y SBLC-backed bond at T+115bp area
Zensun $ 2Y final at 12.5%, alongside exchange offer
- SMC Global Power capped $150mn tap of 5.45% PerpNC2026 at T+100bp area
- CBA $ 4.75Y/10Y Yankee at T+60bp/T+85bp areas
- Mizuho Financial $ 10Y SEC-registered Tier-2 notes at T+145/150bp area
- Huzhou Nanxun Tourism Investment $ 35-month @ 1.93% area
- £300mn via a 7Y bond at a yield of 1.162%, 15bp inside the initial guidance of UKT+85bp area. The bonds have expected ratings of A1/A+ (Moody’s and S&P) and received orders over £1.2bn, 4x issue size
- €500mn via a 13Y bond at a yield of 0.773%, 22-27bp inside initial guidance of MS+80-85bp
- €700mn via a 18Y bond at a yield of 1.104%, 20-25bp inside the initial guidance of MS+95-100bp
The euro tranche received combined orders over €2.4bn, 2x issue size. The net proceeds of the issuance will be used for general corporate purposes. East Japan Railway Company or JR East is the largest Japanese passenger railway company.
New Bonds Pipeline
- China Merchants Securities International hires for $ bonds
- Nippon Life hires for $ 30NC10 bond
- China IBK hires for $ sustainability 3Y or 5Y bond
- Oxley Holdings plans for S$ tap of 6.9% 2024s bond
- JSW up to $1bn planned issuance
- ICBC $6bn AT1 Perp
- Denso hires for $ 5Y sustainability notes
- GF Holdings (Hong Kong) Corp hires for $ SBLC-backed bond
- Kuveyt Türk hires for $350m 10.25NC5.25 inaugural sustainability T2 sukuk
- Moody’s downgrades Evergrande’s and its subsidiaries’ ratings; outlook negative
- Moody’s changes Nabors’ outlook to positive from negative, affirms other ratings
- Fitch Upgrades Jiayuan to ‘B+’; Outlook Stable
- Pampa Outlook Revised To Stable From Negative And Stand-Alone Credit Profile To ‘b-‘ From ‘ccc+’ On Solid Performance
- Carnival Corp. ‘B’ Short-Term Ratings Withdrawn At Company’s Request
Term of the Day
Volcker Moment refers to a policy change where the then Federal Reserve Chairman Paul Volcker decided to quickly raise interest rates to 20% to contain inflation in the late 1970s. The sharp move caused a jump in unemployment but also tamed inflation.
With regard to Chinese real estate, Nomura says that the policies tightening the property sector and curbing prices by Beijing may be China’s Volcker Moment as it will cause a significant slowdown in economic growth.
On government bonds softening as investors bet on taper
Ross Mayfield, US investment strategist at RW Baird
“The timing of this move in Treasuries is strange…[monetary stimulus withdrawal] could put some fire to the heels of the Fed”.
Elisa Belgacem, senior credit strategist at Generali Investments
“There could be a short impact on market sentiment…But the market is already very well prepared for ECB tapering and I do not see any major reactions in bond prices from here.”
On Sri Lanka admitting forex crisis ‘dangerous’
Ajith Cabraal, Junior Finance Minister
“I want to reassure all those who may have been concerned, as a result of these reports that Sri Lanka would not be able to meet its debt, that we are very much having the ability to do so.”
“We expect the company’s deleveraging path to be bumpy, which could lead to deep price discounts for its property sales and potential asset disposal”.
Top Gainers & Losers – 08-Sep-21*