5 April 2016
Credit
Market Monthly Review
March
2016
Bonds Rallied as Global Central Banks
Extend Liquidity
Market
Review
¨ USD: Benchmark
Treasury yield curve steepened.
Asian bonds were supported from positive inflows as Asian CDS, IG
spreads and average yields of junk bonds narrowed.
¨ SGD: High grade
papers in demand as SOR benchmark declines. Further consent solicitations by
O&G and orderbook cancellation.
¨ MYR: Local bonds
rallied on technical demand.
Supply
and Demand Trends
¨ USD:
Primaries picked up from slower Feb with USD17.0bn deals priced in March.
¨ SGD: Stronger March primaries
with a healthy SGD2.43bn printed.
¨ MYR: Perps
led March issuances.
Rating
Trends
¨ More
downgrades with 31 slashed compared to 9 upgrades; upgrade/downgrade ratio of
0.29x in March vs. YTD’s 0.20x; major national oil companies sparred from
downgrade but CNOOC’s BCA slashed to baa1.
¨ Moody’s
negative outlook for the Singaporean banks.
Outlook
¨ US rate hike uncertainty to drive volatility.
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