Cbonds Global

2022-01-25 12:41:02 Upcoming issue

Issuer: CPPIB Capital

Issue description: 15-year debt

Date: this week

Bookrunners and Lead Managers: Barclays, Citi, Goldman Sachs, Morgan Stanley, NatWest Markets Open / Comment

2022-01-25 12:25:50 Upcoming event

Organizer: Mashreqbank

Description: Non-Deal Roadshow

Date: today

"Uzbek Industrial and Construction Bank" JSCB representatives are participating in this Non-Deal Roadshow Open / Comment

2022-01-25 12:13:54 Upcoming issue

Issuer: NextGenerationEU

Issue description: 50m euro bond

Date: first half of the year Open / Comment

2022-01-25 10:00:49 US Treasury Securities

Yield Curve

UST 2Y YTM:
0.99% ( 2 bp)
UST 5Y YTM:
1.53% ( 1 bp)
UST 10Y YTM:
1.75% ( 0 bp)
UST 30Y YTM:
2.10% ( 3 bp)

Market participants are awaiting the Federal Open Market Committee’s meeting this week for clues as to how much the central bank will raise interest rates this year and when it will start.
The Fed’s January two-day policy meeting is due to start Tuesday and conclude Wednesday.

Comment: CNBC Open / Comment

2022-01-24 19:33:10 Upcoming issue

Issuer: Bausparkasse Wustenrot

Issue description: 8-year mortgage covered bond

Date: soon

Bookrunners and Lead Managers: DZ Bank, Erste Grup, Reiffeisen Bank International, Unicredit Open / Comment

2022-01-24 19:26:42 Upcoming issue

Issuer: Itau

Issue description: bond

Date: investors meeting will be held tomorrow

Bookrunners and Lead Managers: Credit Suisse is a sole bookmaker, Itau's American securities branch is a joint lead manager Open / Comment

2022-01-24 19:04:52 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 Open / Comment

2022-01-24 16:18:25 Largest EM issues of Januarу 20-24

Issue | Volume

Philippines
Asian Development Bank (ADB) (Aaa/AAA/AAA), 2.442% 4feb2032, AUD 120 mln
Initial issue price (yield): 100% (2.44%)
The purpose of placing: General Corporate Purposes
Bookrunner: TD Securities
Depository: Clearstream Banking S.A., Euroclear Bank

Guatemala
Central American Bottling Corporation (Ba2/NR/BB+), 5.25% 27apr2029, USD 1,1 bln
Initial issue price (yield): 99.266% (5.38%)
The purpose of placing: General Corporate Purposes, Refinance
Bookrunner: Citigroup, JP Morgan
Depository: Clearstream Banking S.A., DTCC, Euroclear Bank

China
Fu Gang Construction Group, 2.1% 25jan2025, USD 100 mln
Initial issue price (yield): 100% (2.10%)
The purpose of placing: Project Finance
Listing: Hong Kong S.E.
Bookrunner: China Merchants Bank, Guotai Junan Securities, Haitong International Securities Group
Depository: Clearstream Banking S.A., Euroclear Bank

Taian City Development and Investment, 3.75% 26jan2023, USD 110 mln
Initial issue price (yield): 100% (3.75%)
The purpose of placing: General Corporate Purposes, Refinance
Listing: Hong Kong S.E.

Hong Kong
ICBCIL Finance Company Ltd.(A2/A/A), 2.125% 27jan2025, USD 700 mln
Initial issue price (yield): 99.706% (2.23%)
Spread to US Treasury bonds: 90 bp
Bids: 1,400,000,000 USD
Geographic breakdown: Asia (95%), Europe, the Middle East and Africa (5%)
Investor breakdown: Banks and Financial Instituitions (70%), Asset and Fund Managers (19%), Central banks, Pension Funds and Private banks (11%)
The purpose of placing: General Corporate Purposes, Refinance
Listing: Hong Kong S.E.
Bookrunner: ANZ, Agricultural Bank of China, BNP Paribas, Bank of China, Bank of Communications, BofA Securities, CCB International, China Merchants Bank, Citigroup, DBS Bank, HSBC, ICBC, Industrial Bank, JP Morgan, Mitsubishi UFJ Financial Group, Mizuho Financial Group
Depository: Clearstream Banking S.A., Euroclear Bank

ICBCIL Finance Company Ltd.(A2/A/A), 2.7% 27jan2027, USD 500 mln
Initial issue price (yield): 99.722% (2.76%)
Spread to US Treasury bonds: 115 bp
Bids: 1,100,000,000 USD
Geographic breakdown: Asia (99%), EMEA (1%)
Investor breakdown: Banks and Financial Instituitions (73%), Asset and Fund Managers (17%), Insurance Companies, Pension Funds and Private Banks (10%)
The purpose of placing: General Corporate Purposes, Refinance
Listing: Hong Kong S.E.
Bookrunner: ANZ, Agricultural Bank of China, BNP Paribas, Bank of China, Bank of Communications, BofA Securities, CCB International, China Merchants Bank, Citigroup, DBS Bank, HSBC, ICBC, Industrial Bank, JP Morgan, Mitsubishi UFJ Financial Group, Mizuho Financial Group
Depository: Clearstream Banking S.A., Euroclear Bank

Slovenia
Nova KBM (Baa1/-/BBB-), 1.875% 27jan2025, EUR 300 mln
Bids: 475,000,000 EUR
The purpose of placing: General Corporate Purposes, Bail-in
Listing: Luxembourg S.E.
Bookrunner: BNP Paribas, Goldman Sachs, JP Morgan, UniCredit
Depository: Clearstream Banking S.A., Euroclear Bank

Paraguay
Paraguay(Ba1/BB/BB+), 3.849% 28jun2033, USD 500,6 mln
Initial issue price (yield): 99.994% (3.85%)
Bookrunner: Citigroup, Goldman Sachs
Depository: Clearstream Banking S.A., DTCC, Euroclear Bank

Chile
Sociedad de Transmision Austral, 4% 27jan2032, USD 390 mln
Initial issue price (yield): 97.933% (4.26%)
Spread to US Treasury bonds: 250 bp
Bids: 550,000,000 USD
Bookrunner: Bank of Nova Scotia, Itau Unibanco Holdings
Depository: Clearstream Banking S.A., Euroclear Bank Open / Comment

2022-01-24 10:54:53 Rating Actions in Foreign Currency on January 21, 2022

S&P Global Ratings affirmed Azerbaijan at 'BB+' with a stable outlook.

Fitch Ratings:

affirmed Bulgaria at 'BBB' with a positive outlook.

upgraded Angola to 'B-' with a stable outlook.

Reasons: "The upgrade of Angola's IDRs reflects the following key rating drivers and their relative weights. There has been a significant improvement in the country's fiscal and external metrics underpinned by a return to positive economic growth, sound fiscal management and higher oil prices. " Fitch's press release. Open / Comment

2022-01-24 10:03:56 US Treasury Securities

Yield Curve

UST 2Y YTM:
1.01% ( 7 bp)
UST 5Y YTM:
1.54% ( 8 bp)
UST 10Y YTM:
1.83% ( 8 bp)
UST 30Y YTM:
2.14% ( 7 bp)

Negative price action left buyers mistrustful of the market, imprinting a belief that the dip will keep on dipping until proven otherwise.

Other worries in the market included what the Fed will say in next week's policy meeting and the Russia-Ukraine conflict that the U.S. is trying to defuse.

The Treasury market was less of a concern, but only because it was acting as a safe-haven trade from equities.

Comment: Briefing Open / Comment