Cbonds Weekly Market Review Highlights: The most significan | Cbonds Global

Cbonds Weekly Market Review

Highlights:
The most significant change to the US Treasury Yield Curve occurred in the 1Y tenor with a respective value of 7bps.
The weakest EM country currency relative to the US dollar is RUB, with -1.57% performance.
The strongest EM country currency relative to the US dollar is ZAR, with 1.92% performance.
The country with the highest default probability based on 5Y CDS is Argentina, with a respective value of 89.61%.
The most considerable year-to-date change in default probability based on 5Y CDS is 10.05p.p. in Argentina.

News:
Netflix – The US-based global entertainment service provider posted decent fourth-quarter results, but guidance was weak. For December 2021, quarterly revenue grew 16% to USD 7.71 billion, and net income rose 12% to USD 607 million. Global streaming paid member numbers stood at 221.84 million, with the addition of 8.28 million added during Q4. New subscriber growth slowed down to 8.9% and the company expects a further slow pace for additions in Q1, 2022 due to ongoing Covid overhang and macro-economic impacts in regions like LATAM. Currently, Netflix's 3.625% Jun 2025 bond is quoted at a 2.17% yield to maturity.
Microsoft – The US multinational technology giant announced plans to buy game development and interactive entertainment content market leader Activision Blizzard. The deal is all-cash, and the transaction is valued at USD 68.7 billion, or USD 95 per share. Microsoft has indicated that they want to play a key role in developing metaverse platforms. Currently, the 4% Feb 2055 bond is quoted at a 3.11% yield to maturity.
Sunac China Holdings – The Chinese property developer's credit rating was downgraded to BB from BB by Fitch with a negative outlook. Muted sales and insufficient liquidity may deteriorate the credit matrix further. In 2022 significant amount of bonds will be matured; CNY 12.3 billion in onshore bonds and USD 1.2 billion in offshore bonds. The company may continue to sell onshore assets to improve short-end liquidity. Currently, the 6.5% Jan 2025 bond is quoted at a 27.58% yield to maturity.
Hyundai Capital Services – The South Korean consumer financial services company raised USD 700 million by issuing senior unsecured 3.25-year (USD 400 million), 5-year (USD 300 million), green bonds. The 3.25 and 5-years bond coupons were at 2.125% and 2.5%, respectively. Spreads were observed at 89 bps and 104 bps, respectively. The green bond proceeds will be used to finance green loans under a sustainable financing framework. The company is rated BBB+ by S&P. Currently; the 2.5% Jan 2027 bond is quoted at a 2.60% yield to maturity