Advanced Theory & Practice of Bonds

IBF Recognized Under FTS - 23-24 February 2022 (Wed-Thu)

Digital Assets in Capital Market

What a Banker Needs to Know - 9 March 2022 (Wed)

The US yield curve flattened for four consecutive days with the 2s10s ending the week at 74.97bp, down 20bp WoW, the lowest since December 2020, on the back of a frontloading of the Fed’s rate hikes to mid-2022 and risk-off fears weighing on long-end yields. US primary markets saw a sharp increase in issuances over the prior week that had Thanksgiving holidays to $22.6bn vs. $3.7bn in the prior week. IG issuances rose $19.1bn vs. $3bn in the prior week, led by Goldman’s $2.25bn dual-trancher, BofA’s $2bn issuance, Capital One’s $1.75bn two-trancher and T-Mobile’s $1.5bn issuance. HY issuance on the other hand was muted with Starwood Property Trust being the sole issuer with a $400mn issuance vs. almost no new deals in the week before as US junk bond funds saw the largest monthly outflows in 8 months. In North America, there were a total of 31 upgrades and 11 downgrades combined across the three major rating agencies last week. LatAm saw no issuances for a second consecutive week. In South America, there was 1 upgrade and 1 downgrade each combined across the major rating agencies. EU Corporate G3 issuance saw a sharp drop to $11.3bn vs. $23.4bn in the week prior with Daimler Trucks alone raising $6bn via an eight-part deal, followed by ING Bank’s €1.5bn issuance. Across the European region, there were 23 upgrades and 20 downgrades across the three major rating agencies. The GCC saw no issuances for a second consecutive week. Across the Middle East/Africa region, there were 2 upgrades and no downgrades across the three major rating agencies. APAC ex-Japan G3 issuance saw another dull week with only $2bn in issuances vs. $2.2bn in the week before led by SPIC’s $1.3bn PerpNC3.5 preferreds, Chengdu Economic and Technological Investment’s $300mn issuance and Shandong Commercial Group $200mn deal. In the Asia ex-Japan region, there were 7 upgrades and 8 downgrades combined across the three major rating agencies last week.

 

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