Market sentiment continues to be battered by conflicting marco-economic signals and US/China trade war tensions.

New Issue Weekly Monitor

For the week beginning 19th Aug 2019
Asia ex-Japan G3

SummaryS

Asia G3 Year-to-date issuance: USD 220.3bn

Key Market Data
CT10 @ 1.537% (-1.9bps Week-on-Week)
S&P 500 @ 2847.11 (-1.44% Week-on-Week)
HSI @ 26179.33 (+1,73% Week-on-Week)
JACI Index @ 240.37 (-0.11% Week-on-Week)

For the week beginning 19 Aug 2019, USD 1.177bn of bonds was issued from 3 deals.

Breakdown: USD 750mm of Investment Grade, USD 427mm of High Yield bonds.

Market sentiment continues to be battered by conflicting marco-economic signals and US/China trade war tensions. Central Banks globally continue their supportive stance, with the market rallying after the mid week release of the Federal Reserve’s July minutes. The resurgence in risk sentiment was quickly extinguished at the end of the week with further escalations of the US/China trade war.

PBOC was active again for second consecutive weekend. The central bank announced changes to onshore mortgage rates on Sunday, following up on the previous weekend’s Loan Prime Rate(LPR) announcement. Banks will set individual housing loans based on the new loan prime rate (LPR). The interest rate on mortgage loans for first-time home buyers cannot be lower than LPR, and the rate on loans for second-time home buyers cannot be lower than LPR+60bps. The policy will be effective on 8th October 2019.

Singtel priced USD 750mm of 10 year senior unsecured bonds at T+90bps to yield 2.459%. Investor demand was strong with the deal more than 3.6 times covered. The deal tightened 20bps from initial guidance to price flat to its secondary curve. The Singapore telecommunication company tapped the dollar bond market last August for USD 500m of 10 year bonds at T+105bps. 6 Singapore issuers tapped the dollar bond market this year with issuance volume at USD 3.25bn(down 28.6% compared to FY18 YTD).

For the week, 4 banks have been involved as Bookrunners or Lead Managers. HSBC was the most active Bookrunner during the week, participating in 2 deals that were priced.

The new issue pipeline dries up with no new mandates announced in the week. 

Share on