FW: RHB FIC Credit Markets Weekly - 15/1/18

 

 

 

 

15 January 2018

Credit Markets Weekly

MYR Hovered Below 4.00/USD; 5Y GII 04/22 Reopening Drew BTC 2.58x

SUMMARY:

¨      MYR Credit Market: The 5Y GII 04/22 reopening a healthy BTC of 2.58x despite large auction, recording average yield of 3.823% from 3.84% at last traded. The tender saw a stronger BTC of 2.58x compared to 1.72x from a similar auction in Nov 17; Govvies trade volume was at MYR13.04bn, ahead of the 3-month weekly average of MYR10.96bn; Secondary flows slower on the back of weak primaries.

¨      Corporate News – RAM Ratings has lifted the negative rating watch on Premium Commerce Berhad's (PCB)'s affirming Class A and Class B Notes to AAA/Sta and AA2/Sta respectively; RAM Ratings affirmed its AAA/Sta ratings on Maybank Islamic Berhad; RAM Ratings affirmed Bank Pembangunan Malaysia Berhad (BPMB) at AAA/Sta; RAM Ratings affirmed its AAA/Sta ratings on Digi Telecommunications Sdn Bhd; RAM Rating affirmed the AAA/Sta rating of Silver Sparrow Berhad MARC Rating has affirmed its AA-IS/Sta rating on TSH Sukuk Ijarah Sdn Bhd, and TSH Sukuk Murabahah Sdn Bhd Bhd; MARC Rating has affirmed its AAAIS/Sta rating on TSH Sukuk Musyarakah Sdn Bhd.

¨      APAC USD Credit Market: As market participants waited for the release of CPI data at the end of the week, they were mostly caught off-guard after unexpected announcement from BoJ to trim bond purchases. The USTs ended the week bear steepened.

¨      Rating Actions - Fitch has placed a Rating Watch Positive on BB+ rated PT Bank Danamon Indonesia Tbk; Moody's has revised the outlook on E Mart from Baa2/Neg to Baa2/Sta; Moody's has also revised the outlook on Charter Hall Retail REIT from Baa1/Sta to Baa1/Neg; Fitch assigns Power Grid Corporation of India (Powergrid) a BBB-/Sta rating; Fitch has assigned A+/Sta rating on Hanwha Life Insurance Co. Ltd; Moody's assigns Baa2/Sta rating on China Ping An Insurance Overseas Holdings (PAOH); Moody's assigns Baa1/Sta to Leader Goal International Limited's senior perpetual securities guaranteed by Power Construction Corporation of China; Moody's assigns Ba1/Sta to Guangxi Financial Investment Group (GXFIG).

 

Table 1: Index Weekly Movements

Indices	05-Jan	29-Dec	Weekly Chg (bps)
iTraxx AxJ 5y IG	60.7	63.6	-3
SOR 2y (%)	1.47	1.50	-3
SOR 5y (%)	1.83	1.82	0
Malaysia 5y CDS	52.5	55.4	-3
MGS 3y (%)	3.32	3.34	-2
MGS 5y (%)	3.51	3.50	1
MGS 7y (%)	3.84	3.84	0
MGS 10y (%)	3.86	3.90	-4
AAA 5y Spread* (bps)	80	82	-1
AAA 10y Spread* (bps)	85	82	3
AA 5y Spread* (bps)	112	113	-1
AA 10y Spread* (bps)	120	116	3

Source: Bloomberg, BNM, RHBFIC        *MYR-denominated bonds

 

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