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

• Wed, 21 Apr: Earnings: MAPLETREE LOGISTICS TRUST – Aft Mkt
• Thu, 22 Apr: Earnings: MAPLETREE NORTH ASIA COMMERICAL TRUST – Aft Mkt
• Fri, 23 Apr: Earnings: FRASERS CENTREPOINT TRUST – Bef Mkt, SG: URA Private Home Prices QoQ (8:30AM), SG: CPI Core YoY (1:00PM)

Last Week Summary

Despite the big negative news surrounding Huarong AMC, activity in the primary credit space still Continued. Total issuance volume is up US$5.13bn (+65%) and Average Initial Price Guidance (IPG) Tightening increased 12.1bps WoW. Average number of account participation increased to 174, more than double compared to previous week’s 71. There were 3 jumbo deals last week, amounting 61.2% of the week’s issuance. Tencent tapped the offshore market to price a US$4.15bn 4-tranche deal, which alone accounted for more than a third of last week’s total issuance volume. US$13.49bn of bonds was issued from 14 deals. Breakdown: Investment Grade: US$11.75bn, High Yield: US$200mm, Non-Rated: US$1.54bn

• The manager of Frasers Hospitality Trust said the stapled group will redeem at par all the outstanding securities of its S$100mn, 4.45% perpetual securities. It will do so on May 12, the first call date.
• 5 outstanding mandates remain from last two weeks.