OCBC TREASURY RESEARCH - Asian Credit Daily Tuesday, May 18, 2021 - OCBC Credit Research
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
OCBC TREASURY RESEARCH
Asian Credit Daily
Tuesday, May 18, 2021
Market Commentary
▪ The SGD swap curve bull flattened yesterday, with shorter
Credit Research
tenors trading at 1-3bps lower. Belly tenors traded 2-4bps
lower while longer tenors traded 4-5bps lower. Andrew Wong
+65 6530 4736
▪ The Bloomberg Barclays Asia USD IG Bond Index average OAS WongVKAM@ocbc.com
remained mostly unchanged at 142bps, and the Bloomberg
Barclays Asia USD HY Bond Index average OAS tightened 1bps Ezien Hoo, CFA
to 614bps. The HY-IG Index Spread tightened 1bps to 472bps. +65 6722 2215
▪ There were heavy flows yesterday including in STSP 3.3%- EzienHoo@ocbc.com
PERPs, UBS 4.85%-PERPs, SPHSP 4.5%-PERPs, MINTSP 3.15%-
PERPs, CHAAIR 1.88%'31s and OLAMSP 4%'26s. Wong Hong Wei, CFA
▪ 10Y UST Yields gained 2bps to 1.65% as the Empire State +65 6722 2533
Manufacturing Survey, produced by the New York Fed, showed WongHongWei@ocbc.com
that the prices paid index spiked to a record 83.5, the highest
since 2001. Meanwhile, investors are keeping an eye on the Seow Zhi Qi, CFA
Fed minutes from the previous policy meeting, set to come out +65 6530 7348
on Wednesday, to look for any clues as to the central bank’s zhiqiseow@ocbc.com
take on inflation.
Credit Summary:
▪ Singapore Airlines Ltd (“SIA”) | Issuer Profile: Neutral (5): SIA reported its April 2021 operating data.
On a group airline basis, passenger load factor was 13.7%, higher than the 12.8% in March 2021 (April
2020: 9.1%). SIA cargo load factor was at 92.1% in April 2021, steady versus 92.3% in March 2021
(+16.5 percentage points y/y). In our view, the Singapore-Hong Kong travel bubble would not have
moved the needle on SIA’s finances, though a symbolically important measure towards an eventual re-
opening of global travel.
Click Here to access the latest reports from OCBC Credit ResearchOCBC TREASURY RESEARCH
Asian Credit Daily
Credit Headlines
Singapore Airlines Ltd (“SIA”) | Issuer Profile: Neutral (5)
▪ SIA reported its April 2021 operating data. On a group airline basis, passenger load factor was 13.7%,
higher than the 12.8% in March 2021 (April 2020: 9.1%).
▪ Capacity in millions seat-kilometres on a group airline basis was 3,828.9 million seat-kilometres in
April 2021 versus 3,618.2 million seat-kilometres in March 2021. In April 2020, this was only 526.4
million seat-kilometres. Globally the aviation sector was grappling with the first wave of the COVID-
19 pandemic then.
▪ SIA cargo load factor was at 92.1% in April 2021, steady versus 92.3% in March 2021 (+16.5
percentage points y/y).
▪ The Singapore-Hong Kong travel bubble which was due to start on 26 May 2021 has been delayed.
Hong Kong has also classified Singapore, along with a number of other countries as high-risk places.
Travellers arriving from these places who have not been fully vaccinated will need to be quarantined
for 21 days at designated hotels. Previously, Singapore was classified as low-risk.
▪ In our view, the Singapore-Hong Kong travel bubble would not have moved the needle on SIA’s
finances, though a symbolically important measure towards an eventual re-opening of global travel.
(CNA, Bloomberg, Company, OCBC)
Page 2OCBC TREASURY RESEARCH
Asian Credit Daily
Key Market Movements
1W chg 1M chg
18-May 18-May 1W chg 1M chg
(bps) (bps)
iTraxx Asiax IG 85 5 10 Brent Crude Spot ($/bbl) 69.55 1.46% 4.16%
iTraxx SovX APAC 27 1 0 Gold Spot ($/oz) 1,869.67 1.75% 5.55%
iTraxx Japan 47 0 0 CRB 205.94 -0.10% 6.59%
iTraxx Australia 60 0 -2 GSCI 520.92 0.02% 6.59%
CDX NA IG 52 -1 1 VIX 19.72 0.31% 21.35%
CDX NA HY 109 0 0 CT10 (%) 1.649% 2.71 6.90
iTraxx Eur Main 51 0 1
iTraxx Eur XO 254 -2 7 AUD/USD 0.778 -0.84% 0.22%
iTraxx Eur Snr Fin 60 -1 2 EUR/USD 1.216 0.07% 1.00%
iTraxx Eur Sub Fin 108 -9 -1 USD/SGD 1.335 -0.73% -0.37%
iTraxx Sovx WE 6 0 0 AUD/SGD 1.038 0.08% -0.61%
USD Sw ap Spread 10Y -4 -1 -2 ASX 200 7,069 -0.39% 0.08%
USD Sw ap Spread 30Y -32 -2 -3 DJIA 34,328 -1.19% 0.37%
US Libor-OIS Spread 8 0 -2 SPX 4,163 -0.60% -0.53%
Euro Libor-OIS Spread -6 -2 -1 MSCI Asiax 849 -1.52% -3.81%
HSI 28,194 -1.40% -2.68%
China 5Y CDS 38 1 2 STI 3,080 -3.77% -3.81%
Malaysia 5Y CDS 47 0 2 KLCI 1,583 0.33% -1.55%
Indonesia 5Y CDS 77 1 -1 JCI 5,834 -2.38% -4.15%
Thailand 5Y CDS 40 0 0 EU Stoxx 50 4,007 -0.41% -0.65%
Australia 5Y CDS 15 0 -12 Source: Bloomberg
Page 3OCBC TREASURY RESEARCH
Asian Credit Daily
New Issues
▪ Coastal Emerald Ltd (Guarantor: China Shandong Hi-Speed Financial Group Limited) priced a
USD200mn 3-year bond at 3.95%, tightening from IPT of 4.15% area.
▪ National Australia Bank Ltd priced a USD1.25bn 10-year Tier 2 bond at T+135bps, tightening from IPT
of T+160bps area.
▪ HSBC Holdings PLC priced a USD2.0bn 4NC3 bond at T+65bps, tightening from IPT of T+95bps area,
and a USD3.0bn 11NC10 bond at T+117bps, tightening from IPT of T+140bps area.
▪ Redsun Properties Group Ltd priced a USD210mn 3NC2 Will-Not-Grow bond at 7.6%, tightening from
IPT of 8% area.
▪ Nanning Communications Investment Group Co., Ltd. has arranged investors calls commencing 18
May for its proposed USD bond offering.
Date Issuer Size Tenor Pricing
Coastal Emerald Ltd
17-May-21 (Guarantor: China Shandong Hi-Speed USD200mn 3-year 3.95%
Financial Group Limited)
17-May-21 National Australia Bank Ltd USD1.25bn 10-year T+135bps
USD2.0bn 4NC3 T+65bps
17-May-21 HSBC Holdings PLC
USD3.0bn 11NC10 T+117bps
17-May-21 Redsun Properties Group Ltd USD210mn 3NC2 7.6%
Source: OCBC, Bloomberg
Page 4OCBC TREASURY RESEARCH
Asian Credit Daily
Treasury Research & Strategy
Macro Research
Selena Ling Tommy Xie Dongming Wellian Wiranto Howie Lee
Head of Research & Strategy Head of Greater China Malaysia & Indonesia Thailand, Korea &
LingSSSelena@ocbc.com Research WellianWiranto@ocbc.com Commodities
XieD@ocbc.com HowieLee@ocbc.com
Carie Li Herbert Wong
Hong Kong & Macau Hong Kong & Macau
carierli@ocbcwh.com herberthtwong@ocbcwh.com
FX/Rates Strategy
Frances Cheung Terence Wu
Rates Strategist FX Strategist
FrancesCheung@ocbc.com TerenceWu@ocbc.com
Credit Research
Andrew Wong Ezien Hoo Wong Hong Wei Seow Zhi Qi
Credit Research Analyst Credit Research Analyst Credit Research Analyst Credit Research Analyst
WongVKAM@ocbc.com EzienHoo@ocbc.com WongHongWei@ocbc.com ZhiQiSeow@ocbc.com
This publication is solely f or inf ormation purposes only and may not be published, circulated, reproduced, or distributed in whole or in part to any other
person without our prior written consent. This publication should not be construed as an offer or solicitation for the subscription, purchase or sale of the
securities/instruments mentioned herein. Any forecast on the economy, stock market, bond market and economic trends of the markets provided is not
necessarily indicativ e of the future or likely performance of the securities/instruments. Whilst the information contained herein has been compiled from
sources believed to be reliable and we have taken all reasonable care to ensure that the inf ormation contained in this publication is not untrue or
misleading at the time of publication, we cannot guarantee and we make no representation as to its accuracy or completeness, and y ou should not act
on it without first independently verifying its contents. The securities/instruments mentioned in this publication may not be suitable f or investment by all
inv estors. Any opinion or estimate contained in this report is subject to change without notice. We hav e not given any consideration to and we have not
made any investigation of the inv estment objectives, financial situation or particular needs of the recipient or any class of persons, and accordingly, no
warranty whatsoever is giv en and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of the recipient or any
class of persons acting on such information or opinion or estimate.
This publication may cov er a wide range of topics and is not intended to be a comprehensive study or to provide any recommendation or advice on
personal investing or financial planning. Accordingly, they should not be relied on or treated as a substitute f or specif ic adv ice concerning individual
situations. Please seek advice from a financial adviser regarding the suitability of any investment product taking into account your specif ic investment
objectives, financial situation, or particular needs before y ou make a commitment to purchase the inv estment product. OCBC and/or its related and
aff iliated corporations may at any time make markets in the securities/instruments mentioned in this publication and together with their respective
directors and officers, may hav e or take positions in the securities/instruments mentioned in this publication and may be engaged in purchasing or
selling the same for themselves or their clients, and may also perform or seek to perform broking and other investment or securities-related services for
the corporations whose securities are mentioned in this publication as well as other parties generally. There may be conflicts of interest between
Ov ersea-Chinese Banking Corporation Limited (“OCBC Bank”), Bank of Singapore Limited, OCBC Investment Research Private Limited, OCBC
Securities Private Limited or other members of the OCBC Group and any of the persons or entities mentioned in this report of which OCBC Bank and
its analy st(s) are not aware due to OCBC Bank’s Chinese Wall arrangement.
This report is intended for your sole use and inf ormation. By accepting this report, you agree that you shall not share, communicate, distribute, deliver a
copy of or otherwise disclose in any way all or any part of this report or any information contained herein (such report, part thereof and inf ormation,
“Relevant Materials”) to any person or entity (including, without limitation, any overseas office, affiliate, parent entity, subsidiary entity or related entity)
(any such person or entity, a “Relevant Entity”) in breach of any law, rule, regulation, guidance or similar. In particular, you agree not to share,
communicate, distribute, deliver or otherwise disclose any Relevant Materials to any Relevant Entity that is subject to the Markets in Financial
Instruments Directive (2014/65/EU) (“MiFID”) and the EU’s Markets in Financial Instruments Regulation (600/2014) (“MiFIR”) (together ref erred to as
“MiFID II”), or any part thereof, as implemented in any jurisdiction. No member of the OCBC Group shall be liable or responsible f or the compliance by
y ou or any Relevant Entity with any law, rule, regulation, guidance or similar (including, without limitation, MiFID II, as implemented in any jurisdiction).
Co.Reg.no.:193200032W Page 5You can also read
