SG Bonds Weekly – Week 2 January 11, 2021 471

Outlook for the week

Key economic releases for the week

  • Mon, 11 Jan: CH: CPI YoY (9:30AM)
  • Wed, 13 Jan: US: CPI YoY (9:30PM)
  • Thu, 14 Jan: US: U.S. Federal Reserve Releases Beige Book (3:00AM), CH: Exports YoY
  • Fri, 15 Jan: US: Industrial Production MoM (10:15PM)

 

2020 Review

Asia G3 primary markets mounted a strong comeback thanks to the Central Bank liquidity

drive and fiscal stimulus across large economies. The pandemic outbreak looked to be

derailing everything in the beginning of the year, but the comeback was equally strong with total issuance of USD387bn up 13.7% from the previous year and setting a record high.

  • Philippines, Malaysia and Singapore saw the biggest percentage increase in bond issuance YoY at 160%, 125% and 76% respectively. China’s lead over the next biggest issuing country in absolute issuance volume continues to grow.
  • Top performing new issues in secondary market trading: In IG they consisted mainly of longerdated bonds, while HY performers saw a greater mix of industrial names away from traditional real estate names.
  • Increased investor participation was obvious as average book coverage, number of participating accounts and IPG to Issue Price tightening all increased YoY (4.9x -> 5.7x, 104.5 -> 126.9, 24.7bps -> 34.8bps respectively).

 

Last Week Summary

  • Great Eastern Holdings on Wednesday said that Great Eastern Life Assurance Company will be redeeming early all S$400 million of 4.6 per cent subordinated notes due 2026 but callable in 2021.

 

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About the author

Profile photo of Timothy Ang

Timothy Ang
Research Analyst
Phillip Securities Research

Timothy covers credit analysis of local and foreign bonds. Previously an equity dealer, he handled equity trade execution and portfolio management. 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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