Outlook for the week

We view high yield bonds as more favourable given historically cheap valuations and higher buffers against rising interest rates.

Key economic releases for the week

• Mon 29 Mar: Earnings: SPH REIT,
• Tue, 30 Mar: Earnings: SINGAPORE PRESS HOLDINGS,
• Wed, 31 Mar: SG: Bank Loans and Advances YoY (10:00AM), SG: Money Supply M2 YoY (10:00AM), CH: Manufacturing PMI (9:00AM)
• Thu, 1 Apr: SG: URA Private Home Prices QoQ (8:30AM), US: Initial Jobless Claims (8:30PM), US: Markit US Manufacturing PMI (9:45PM)

Last Week Summary

Primary issuance in Asia G3 markets remain active last week, with issuers from a diverse

group of countries. Korean online services giant Naver Corporation made its debut in the

dollar market with a 5-year USD sustainability bond. As the only Non-China IG issuer this week, the deal received enthusiastic demands from the market, resulting in the deal 6 times covered. GLP China’s new 5-year bonds proved to be the best performing new issue this week in secondary trading, having traded more than 20bps below reoffer, as of this morning. US$5.88bn of bonds was issued from 10 deals. Breakdown: Investment Grade: US$2.75bn, High Yield: US$2.83bn, Non-Rated: US$300mm.

• CapitaLand on Monday proposed to consolidate its investment management and lodging platforms into CapitaLand Investment Management (CLIM). CLIM will be listed, while CapitaLand will be privatised. As part of the privatisation, existing CapitaLand shareholders will receive a combination of cash, units of CLIM and units of CapitaLand Integrated Commercial Trust (CICT). In its announcement, CapitaLand estimated the value of the total consideration at S$4.102.
• Mainboard-listed Olam International has priced US$100mn in 5-year notes due 2026, via a private placement, the food and agri-business firm said on Wednesday night in a Singapore Exchange announcement. Part of Olam’s US$5bn euro medium term note programme, the notes will be issued on March 31, 2021 at a fixed coupon of 3.25%, payable semi-annually in arrears.

5 outstanding mandates were announced during the last two weeks.