2022-01-17 18:43:56
Cbonds Weekly Market Review
Highlights:
The most significant change to the US Treasury Yield Curve occurred in 2Y tenor with a respective value of 12bps.
The weakest EM country currency relative to the US dollar is RUB, with -0.99% performance.
The strongest EM country currency relative to the US dollar is TRY, with 2.55% performance.
The country with the highest default probability based on 5Y CDS is Argentina, with a respective value of 87.73%.
The most considerable year-to-date change in default probability based on 5Y CDS is 8.41p.p. in Argentina.
News:
United Overseas Bank – The Singapore bank will acquire Citigroup's consumer banking business in Southeast Asia, Vietnam, Thailand, Indonesia, and Malaysia. The deal is valued at USD 3.7 billion, of which USD 2.97 billion is the consumer business value. UoB will pay a $690 million premium to the bank, which will add 2.4 million customers to the portfolio and an additional 5,000 employees. Currently, UoB 2% Oct 2031 and Citigroup 2.572% Jun 2031 bonds are quoted at a 2.34% and 2.78% yield to maturity, respectively.
Delta – The US airline has posted an adjusted pre-tax loss of USD 3.4 billion on adjusted operating revenue of USD 26.7 billion for 2021. The company got USD 4 billion from American Express for the full year 2021. Delta invested USD 2.9 billion back in the business and reduced financial obligations by USD 7 billion during the year. The company had total debt and finance lease obligations of $26.9 billion as of December 2021. The company expects the Omicron variant's recent wave will impact demand recovery and revenue growth. Currently, the 3.75% Oct 2029 bond is quoted at 3.61% yield to maturity.
ENN Energy – The Chinese piped gas operator and energy distributor's credit rating was upgraded to BBB+ from BBB by Fitch with a stable rating outlook. The company recently reported a strong cash flow generation, stable margins, and credit matrics. Gas sales volumes in 2020 rose 10.2%, and they rose 19.9% till September 2021. Fitch expects positive cash flow generation till 2024. Currently, the 2.625% Sep 2030 bond (USD) is quoted at a 2.91% yield to maturity.
Shriram Transport Finance – This Indian finance company is mainly engaged in financing commercial vehicles. It raised USD 475 million by issuing senior secured 3.5-year bonds. The coupon was set semi-annually at 4.15%. Spread was observed at 300 bps. The bonds proceeds will be used in accordance with the company's social finance framework, onward lending, and other activities as allowed under regulation. The company is rated BB- by S&P. Currently, the 4.15% Jul 2025 bond is quoted at a 4.27% yield to maturity.
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