17 March 2017
Credit Markets Update
TBE
Issued MYR800m Perp for Refinancing
MYR Credit Market:
¨ Govvies
rallied on less hawkish Fed. MGS curve bull-flattened as yields declined
across the curve with the 3y falling 2bps to 3.42% while 10y slipped 7bps to
4.08%. MGS 9/17 remained highly traded with a volume of MYR1.5bn, ending the
day lower at 3.33% (-6bps from the last traded the previous day). The GII
sphere stayed muted with merely MYR243m exchanging hands throughout the day.
The MYR strengthened 0.24% to 4.438/USD amid the weakening of the greenback.
¨ Quasi
government bonds dominated corporate activities. Volume totalled MYR818m yesterday.
Yields for short-tenure quasi government bonds generally inched higher –
Cagamas ’17-18 settled at 3.70-3.97% (-1bp to 9bps) on combined MYR185m trades,
PASB 6/17 rose 5bps to 3.49%, while Khazanah 3/20 increased 2bps to 4.06%. New
issuance AMMB Hldg T2 3/27c22 transacted at 5.00%, 20bps below the coupon.
Affin Bank T2 2/27c22, which was issued last month, also closed firmer at
5.245% (c.21bps below coupon).
¨ Tanjung
Bin Energy Sdn Bhd (TBE) issued non-rated MYR800m Pnc7. The perpetual unrated
Sukuk is backed by an unconditional and irrevocable subordinated cash
deficiency support from the Obligor, Malakoff Corp. The proceeds from the
issuance are earmarked for partial redemption of MYR1.29bn Junior Term Loan.
APAC USD Credit
Market:
¨ UST bear steepened, erasing Fed-fueled gains on Wednesday
amid steeper decline in UK bonds as the Bank of England released a somewhat
hawkish statement, despite maintaining status quo on interest rate. 2y USTs
yield edged up to 1.33% (+3.3bps), while 10y bond rose by 4.7bps to 2.54%. The
US economic data released yesterday showed housing starts data moved to a
four-month high in February (actual: 1288k, consensus: 1264k), as a result
of tighter job market and improved finances. Initial jobless claims data was
slightly higher than expectation (actual: 241k, consensus: 240k). The DXY
index was down by 0.38% to 100.36. Looking ahead, industrial production and
University of Michigan sentiment data will be released later tonight.
¨ Over in Asia, iTraxx AxJ IG index fell
by 3.5bps to 89.8bps, with lower CDS spreads seen in Bank of China Ltd,
Reliance Industries Ltd and PETMK. PETMK’s CDS spreads were largely unaffected
by the modest decline in its FY16 earnings amid lower crude oil prices. The IG
space was a tad wider at 171.8bps (+0.2bps); the HY credit spreads lost 6.2bps
to 6.57%.
¨ In primaries, APA Pipelines Ltd (issue
rating: NR) priced USD850m long 10y at T+185bp, against its IPT at T+200bp
area. Elsewhere, Fortune Star (BVI) Ltd. (issue rating: NR/BB/NR,
guarantor: Fosun International Ltd) sold USD800m 5NC3 bond at 5.25%, compared
to its IPT at 5.5% area. Scentre Mgmt Ltd (issue rating: A1/NR/NR)
issued USD500m 10y bond at T+130bp, against its IPT at T+150bp area.
¨ Moody’s revised Beijing Enterprises
Holdings Ltd’s (BEH) outlook from negative to stable in order to reflect
that the company’s parent Beijing Enterprises Group Co. Ltd (BEG) will maintain
its credit profile and Moody’s expectation that BEH’s financial performance to
improve over the next 12-24 months.
This message is intended only for the use of the person(s) to whom it is
addressed and may contain information that is privileged or otherwise protected
from disclosure. If you are not the intended recipient you are hereby notified that
any use, review, disclosure or copying of this message and the information it
contains is prohibited. If you receive the message in error, please notify the
sender by reply e-mail and discard all its contents.
Thank You.
|
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.