Cbonds Global

2022-01-17 10:32:36 US Treasury Securities

Yield Curve

UST 2Y YTM:
0.99% ( 8 bp)
UST 5Y YTM:
1.55% ( 8 bp)
UST 10Y YTM:
1.78% ( 8 bp)
UST 30Y YTM:
2.12% ( 7 bp)

U.S. Treasury yields climbed on Friday morning, as investors remained focused on hawkish comments from Federal Reserve officials.
The jump on Friday erased much of the modest decline from earlier in the week after the 10-year yield briefly topped 1.8% on Monday.

Comment: CNBC

Bond and equity markets will be closed on Monday for Martin Luther King, Jr. Day. Open / Comment

2022-01-15 12:01:01 #Analytics
Potential sanctions on the table

Source: Russian economics, Renaissance Capital

The draft of new anti-Russian sanctions was submitted by Democrats to the US Senate. Sanctions should materialise if the president of US consider Russia to be engaged in a significant escalation against Ukraine aimed at overthrowing the Ukrainian government or occupying its territory.

A ban on transactions with Russian sovereign debt issued after the ban (on the primary and secondary markets, for eurobonds and local securities for newly issued bonds).
Sanctions against at least three banks and financial institutions (at risk are Sberbank, VTB, Gazprombank, VEB.RF, the Russian Direct Investment Fund [RDIF], Credit Bank of Moscow, Alfa Bank, Rosselkhozbank, Otkritie, Promsvyazbank, Sovcombank, Transkapitalbank), as well as companies that provide services for the transfer of financial messages for banks under sanction, including through SWIFT (the direct disconnection of Russia from SWIFT is outside the competence of the US).
Tightening of restrictions over the Nord Stream 2 project, namely any companies that participate in planning, construction and operation of the pipeline. The president is also provided with the opportunity to introduce sanctions (in the form of property blocking) against
virtually any company, primarily in extraction and processing of oil, gas, coal and minerals.
Sanctions against 12 high-ranking Russian officials and the military, including the president, prime Minister and the ministers of foreign affairs and defence.

Importantly, the list has a potential extension, that includes:
Sanctions on individuals or entities in the extraction sectors, including oil & gas, coal,
minerals and others, determined by the president.
Sanctions on otherstate-controlled banks (in addition to the list of 12 banks stated above).
Sanctions on operations with the debt of state-controlled entities that were not sanctioned previously.

Read the full report here Open / Comment

2022-01-14 18:35:24 Upcoming issue

Issuer: Landesbank Baden-Wuerttemberg (LBBW)

Issue description: 7.5-year bond

Date: the beginning of the next week

Bookrunners and Lead Managers: BNP Paribas, Credit Agricole, UniCredit, Erste Group, ING, LBBW Open / Comment

2022-01-14 18:05:16 #CbondsAnalytics

Asia Based Semiconductor Companies' Eurobonds Analysis

As of January 2022, out of a total of 10 Asia-based semiconductors companies that issued Eurobonds, there are 26 outstanding USD bonds,
amounting to USD 17.02 billion, including convertible bonds. Coupon rates ranged between 0.75%-4.5%.
In Asia, semiconductor companies are concentrated in Taiwan, followed by China.
In the last 3-months, Asia-based semiconductor companies' Eurobond yields rose as US treasury yields increased sharply. TSMC, AA- rated 1.25% Apr 2026 yields rose 58 bps to 1.98% while Hon Hai Precision Industry rated A- 3% Sep 2026 yield rose 53 bps to 2.17%. Convertible bond prices were mixed for the last 3-months. Credit spreads were largely stable with a downward bias.
COVID-19 has given thrust to the digital transformation, making semiconductors more relevant and essential in people's lives. The industry
witnessed a structural increase in long-term demand. Short-term imbalances in the supply chain and tight business capacity are set to affect dependant industries.
Structural demand increase will be credit positive for semiconductor companies and conducive for more bonds issuances.
The global automotive sector is struggling with automotive IC and other component shortages affecting production.

Read the full report here Open / Comment

2022-01-14 16:16:09 Largest EM issues of Januarу 12-14

Issue | Volume

Chile
Agrosuper SA (Ba1/-/BBB-), 4.6% 20jan2032, USD 500 mln
Initial issue price (yield): 100% (4.60%)
Bookrunner: Bank of Nova Scotia, BofA Securities, Citigroup, JP Morgan
Depository: Clearstream Banking S.A., Euroclear Bank

Hong Kong
CCTHK 2021 (Baa1/-/-), 2% 19jan2025, USD 300 mln
Initial issue price (yield): 99.032%
Spread to US Treasury bonds: 115 bp
The purpose of placing: General Corporate Purposes, Working Capital, Refinance
Listing Hong Kong S.E.
Bookrunner: Agricultural Bank of China, Bank of Communications, Barclays, BofA Securities, CCB International, CITIC Securities International, CLSA, China Chengtong Investment, China International Capital Corporation (CICC), China Merchants Bank, Citigroup, DBS Bank, Haitong International Securities Group, Huatai Securities, ICBC, Mizuho Financial Group
Depository: Clearstream Banking S.A., Euroclear Bank

CCTHK 2021 (Baa1/-/-), 2.75% 19jan2027, USD 400 mln
Initial issue price (yield): 99.325%
Spread to US Treasury bonds: 140 bp
The purpose of placing General: Corporate Purposes, Working Capital, Refinance
Listing: Hong Kong S.E.
Bookrunner: Agricultural Bank of China, Bank of Communications, Barclays, BofA Securities, CCB International, CITIC Securities International, CLSA, China Chengtong Investment, China International Capital Corporation (CICC), China Merchants Bank, Citigroup, DBS Bank, Haitong International Securities Group, Huatai Securities, ICBC, Mizuho Financial Group
Depository: Clearstream Banking S.A., Euroclear Bank

South Africa
Naspers (-/NR/Withdrawn), 1.207% 19jan2026, EUR 500 mln
Initial issue price (yield): 100% (1.21%)
Spread to mid-swaps: 120 bp
The purpose of placing: General Corporate Purposes, Investment
Listing: Irish S.E.
Bookrunner: BNP Paribas, Citigroup, Deutsche Bank, Goldman Sachs
Depository: Clearstream Banking S.A., Euroclear Bank

Naspers (-/NR/Withdrawn), 2.085% 19jan2030, EUR 600 mln
Initial issue price (yield): 100% (2.09%)
Spread to mid-swaps: 183 bp
The purpose of placing: Acquisition Financing, General Corporate Purposes, Investment
Listing Irish: S.E.
Bookrunner: BNP Paribas, Citigroup, Deutsche Bank, Goldman Sachs
Depository: Clearstream Banking S.A., Euroclear Bank

Naspers (-/NR/Withdrawn), 2.778% 19jan2034, EUR 650 mln
Initial issue price (yield): 100% (2.78%)
Spread to mid-swaps: 233 bp
The purpose of placing: Acquisition Financing, General Corporate Purposes, Investment
Listing: Irish S.E.
Bookrunner: BNP Paribas, Citigroup, Deutsche Bank, Goldman Sachs
Depository: Clearstream Banking S.A., Euroclear Bank Open / Comment

2022-01-14 12:14:51 ​​ Bookrunner Ranking for Azerbaijan Bonds in 2021

Cbonds has published its annual ranking of Azerbaijani bond placement organizers based on 2021’s results. The final general ranking table includes six bookrunners who placed 23 issues for 330 million dollars.

For the past year, the overall ranking leader was the investment company InvestAZ, which was the bookrunner of six issues for the 165 million dollars Azerbaijan Mortgage and Credit Guarantee Fund. Its share of the placement market was 49.91%.

Second place was taken by PSG Kapital, which organized the SOCAR issue for 100 million dollars.

In third place is PASHA Capital, which took part in organizing six issues for 45 million dollars.

The fourth place was taken by AzFinance Invest, which in 2021 organized nine issues of six issuers for 12 million dollars. Rounding out the top five is Unicapital, which took part in placing 8 million dollars.

The ranking considers all corporate bonds issues by Azerbaijani issuers placed on the domestic market. Participants are investment banks that have the status of issue bookrunners.

The full version of the ranking is available in the corresponding section. Open / Comment

2022-01-14 11:35:07 ​​ Cbonds has prepared the league table for investment banks – the arrangers of Singapore bonds for 2021

Cbonds announces the publication of the league table for investment banks – the arrangers of domestic corporate bonds in the Singapore market for 2021. Only domestic corporate bonds are represented in the league table. Securitized bonds, structured products, and bonds with a maturity of fewer than 365 days are not taken into account.

In the 2021, the cumulative volume of the registered issues amounted to 20 856 mln US dollars.

DBS Bank is ranked the highest with a result of 5 294 million US dollars and 41 issues. It is followed by United Overseas Bank, which arranged 27 issues for a total of 3 578 million US dollars, and OCBC, which arranged the placement of 25 issues for 2 533 million US dollars.

You can find the full league tables at the following link.

Cbonds expresses its gratitude to the investment banks involved in the validation of deals included in the Cbonds rankings. To all participants of the primary bonds and Eurobonds market we suggest cooperation that makes our rankings more equitable and reflective of the real market situation. Open / Comment

2022-01-14 11:20:30 ​​ Cbonds has prepared the league tables for investment banks – the arrangers of French bonds for 2021

Cbonds has prepared a ranking of investment banks - organizers of the placement of domestic corporate bonds in the French market for 2021. The ranking includes domestic corporate bonds excluding securitized bonds, structured products, and bonds with a maturity of fewer than 365 days.

In the 2021, the cumulative volume of recorded issues amounted to USD 239 532 million.

BNP Paribas took first place in the ranking with a result of USD 43 060 million and 123 issues. The second place was taken by Societe Generale, which organized 101 issues for a total amount of USD 36 646 million. Natixis closed the top three, arranging 89 issues for USD 19 983 million.

You can find the full league tables at the following link.

Cbonds would like to thank the investment banks for confirming their participation in the publication of the releases. We invite all participants in the primary bond and Eurobond placement market to cooperate. Open / Comment

2022-01-14 10:51:22 US Treasury Securities

Yield Curve

UST 2Y YTM:
0.91% ( 1 bp)
UST 5Y YTM:
1.57% ( 3 bp)
UST 10Y YTM:
1.70% ( 4 bp)
UST 30Y YTM:
2.05% ( 3 bp)

Treasury yields fall after inflation data, jobless claims. Yields moved lower despite the hot CPI reading. The 10-year yield jumped sharply the previous week before pulling back slightly in the last two sessions, suggesting that high inflation numbers were already priced in to the market.

Comment: CNBC Open / Comment

2022-01-13 16:42:16 Largest EM issues of Januarу 11-13

Issue | Volume

Hong Kong
Link Finance Cayman 2009 (A2/-/-), 2.75% 19jan2032, USD 600 mln
Initial issue price (yield): 99.049% (2.86%)
Spread to US Treasury bonds: 110 bp
The purpose of placing: General Corporate Purposes
Listing: Hong Kong S.E.
Bookrunner: Bank of China, BofA Securities, DBS Bank, HSBC, Mizuho Financial Group
Depository: Clearstream Banking S.A., Euroclear Bank

South Africa
Naspers (-/NR/Withdrawn), 3.257% 19jan2027, USD 1.25 bln
Initial issue price (yield): 100% (3.26%)
Spread to US Treasury bonds: 175 bp
The purpose of placing: Acquisition Financing, General Corporate Purposes, Investment
Listing: Irish S.E.
Bookrunner: BNP Paribas, Citigroup, Deutsche Bank, Goldman Sachs
Depository: Clearstream Banking S.A., DTCC, Euroclear Bank

Naspers (-/NR/Withdrawn), 4.193% 19jan2032, USD 1 bln
Initial issue price (yield): 100% (4.19%)
Spread to US Treasury bonds: 245 bp
The purpose of placing: Acquisition Financing, General Corporate Purposes, Investment
Listing: Irish S.E.
Bookrunner: BNP Paribas, Citigroup, Deutsche Bank, Goldman Sachs
Depository: Clearstream Banking S.A., Euroclear Bank

Naspers (-/NR/Withdrawn), 4.987% 19jan2052, USD 1.25 bln
Initial issue price (yield): 100% (4.99%)
Spread to US Treasury bonds: 290 bp
The purpose of placing: Acquisition Financing, General Corporate Purposes, Investment
Listing: Irish S.E.
Bookrunner: BNP Paribas, Citigroup, Deutsche Bank, Goldman Sachs
Depository: Clearstream Banking S.A., DTCC, Euroclear Bank

Panama
Panama (Baa2/BBB/BBB-), 3.298% 19jan2033, USD 1 bln
Initial issue price (yield): 100% (3.30%)
Spread to US Treasury bonds: 155 bp
The purpose of placing: General Corporate Purposes
Bookrunner: Citigroup, JP Morgan
Depository: Clearstream Banking S.A., DTCC, Euroclear Bank

Panama (Baa2/BBB/BBB-), 4.5% 19jan2063, USD 1.5 bln
Initial issue price (yield): 99.375% (4.53%)
Spread to US Treasury bonds: 245 bp
The purpose of placing: General Corporate Purposes
Bookrunner: Citigroup, JP Morgan
Depository: Clearstream Banking S.A., DTCC, Euroclear Bank

Philippines
Asian Development Bank (ADB) (Aaa/AAA/AAA), FRN 16jun2026, USD 800 mln
Initial issue amount: 250 mln USD
Listing: Luxembourg S.E.
Bookrunner: Goldman Sachs
Depository: Clearstream Banking S.A., Euroclear Bank

India
State Bank of India (London Branch) (Baa3/-/-), 2.49% 26jan2027, USD 300 mln
Initial issue price (yield): 99.972%
Spread to US Treasury bonds: 100 bp
The purpose of placing: Capital Expenditures, General Corporate Purposes
Listing: SGX, India International Exchange, Taipei Exchange

Cote d`Ivoire
African Development Bank (Aaa/AAA/AAA), 1.125% 18jun2025, GBP 600 mln
Initial issue price (yield) 99.804% (1.18%)
Listing Luxembourg S.E. Open / Comment