SG Bonds Weekly Week 16 April 19, 2021 200

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.

 

 

 

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About the author

Profile photo of Timothy Ang

Timothy Ang
Research Analyst
Phillip Securities Research

Timothy covers the US technology sector focusing on hardware companies. Previously a credit analyst, he handled bond analysis and research for the fixed income desk. He has presented seminars for organisations such as SIAS, SPH and IRAS, commentated live market updates for 93.8FM, and authored investment articles for the Business Times newspaper. He graduated with a Bachelor of Commerce in Accounting & Finance from the University of Western Australia.

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