SG Bonds Weekly – Week 51 December 14, 2020 395

Outlook for the week

Key economic releases for the week

  • Tue, 15 Dec: CH: Industrial Production YoY (10:00AM), US: Industrial Production MoM (10:15PM)
  • Wed, 16 Dec: US: Markit US Manufacturing PMI (10:45PM)
  • Thu, 17 Dec: SG: Non-oil Domestic Exports YoY (8:30AM), US: FOMC Rate Decision (3:00AM)

 

Last week summary

Primary issuance in Asia G3 markets slows down into the second week of December but with a more diverse group of issuers. Investor demand is however still strong – Bonds priced with negative New Issue Premiums this week continues trade strongly in the secondary market. The real estate sector continues to shine this week as well, averaging 7.1x book coverage and 160 accounts participation. Asian asset managers took over 81% of this weeks allocation.

  • Starhill Global Real Estate Investment Trust’s trustee issued S$100mn of 3.85 per cent perpetual securities, the manager said in a bourse filing on Wednesday night. The perps will be issued under the REIT’s S$2bn multi-currency debt issuance programme. If they are not called, the coupon rate will reset on Dec 15, 2025, and every five years thereafter to the prevailing Singapore dollar five-year swap offer rate plus an initial spread of 3.292 per cent per annum.
  • The Singapore Exchange has inked an agreement with the China Central Depository & Clearing Co (CCDC) to strengthen and promote the bond markets of both countries. Under the MOU, SGX will work with CCDC to promote the internationalisation of China’s bond market, and provide Chinese bond products and services internationally. The CCDC is a central securities depository for Chinese government bonds.
  • New issue pipeline builds up with 3 new mandate outstanding from the ones announced over the fortnight.

 

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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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