Weekly Market Review - Investfunds
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Weekly Market Review
May 31st, 2021
Highlights:
• The most significant change to the US Treasury Yield Curve occurred in 30Y tenor with a
respective value of -7bps.
• The weakest EM country currency relative to the US dollar is TRY, with -1.69% performance.
• The strongest EM country currency relative to the US dollar is BRL, with 2.63% performance.
• The country with the highest default probability based on 5Y CDS is Argentina, with a respective
value of 71.9%.
• The most considerable year-to-date change in default probability based on 5Y CDS is 19p.p. in
Argentina.
News:
• Oceanwide Holdings – The Chinese real estate developer/property distributor could not pay part of
the redemptions for its 14.5% May 23rd 2021, USD 280 million bonds due to a liquidity issue. The
company made it clear they would repay the remaining part of the payment by August 23, 2021, by selling
some real estate projects onshore as well as some offsore assets. The matured bond was exchanged from 8.5%
May 28th 2019,USD in 2019.
• Singtel – The communication group posted weak results; net profit was down 49% to USD 418 million,
revenue was down to USD 11.8 billion, a 5% decline for the financial year 2021. Performance was impacted
due to the Covid-19 challenge and strucutural changes. The company announced a strategic reset through %g
technology and level raging digital services to increase growth. The Singtel,3.25% June 2025 bond is
currently quoted at 1.16% levels.
• Westpac – This large Australian bank raised USD 2.75 billion by issuing dollar bonds. The bank sold 5-year
and 10-year maturity bonds. These unsecured bonds were issued in 3 tranches.1.15% June 2026, Floating
rate note June 2026, and 2.15% June 2031 for USD 1.45 billion, USD 500 million, and USD 1 billion,
respectively. Fixed rate 5 and 10-year bonds were issued at around 41 bps and 60 bps levels over the US
treasury. The floating rate bond was linked to SOFR, i.e the secured overnight financing rate.
• New World Development – This Hong-Kong based company develops and invests in properties, providing
contracting, property management, infrastructure, telecommunication services, department stores, hotels and
restaurants, media technology, and transportation services. It raised USD 1.2 billion by issuing a perpetual
bond with a coupon of 4.125% and a 7-year call option. Issuance spread was above 285 bps levels above US
treasury. The company also launched a tender offer for a 5.75% perpetual fixed for life. Bonds proceeds will
be used for tender offers and general corporate purposes.
© Cbonds.com | Weekly Market ReportLargest High Yield Issues
Amount, Issuer Rating End of
Issue Country
mln USD M/S/F Placement
Kaisa Group Holdings, 11.65%
China 300 B2/B/B 24.05.2021
1jun2026, USD
Bausch Health Companies,
Canada 1600 B2/B+/B 24.05.2021
4.875% 1jun2028, USD
Antero Midstream Partners,
USA 750 Ba3/BB-/– 24.05.2021
5.375% 15jun2029, USD
Jinke Property, 6.85%
China 325 B1/BB-/– 25.05.2021
28may2024, USD
Akropolis Group, 2.875%
Lithuania 610 –/BB+/BB+ 26.05.2021
2jun2026, EUR
Aragvi Holding International,
Moldova 450 –/B-/B 27.05.2021
8.45% 29apr2026, USD
*High yield placements included with an outstanding amount of more than $200 million, taking place between 24.05.2021 and
28.05.2021
Sovereign Rating Сhanges on May 21-28
New Old
Country Date
Rating Outlook Rating Outlook
Bahrain B+ Negative B+ Stable 28-05-2021
Belize SD CC Negative 24-05-2021
Vietnam BB Positive BB Stable 21-05-2021
© Cbonds.com | Weekly Market ReportCbonds Country Sovereign Eurobonds Indices
Eurobond sovereign indices measure T-spread, total yield and other indicators for the major issuing
countries. They are calculated once every trading day (at close).
© Cbonds.com | Weekly Market ReportMarket Indices & US Treasury Yield Curve
UST 2Y UST 10Y DOW NASDAQ
S&P500 SOFR
YTM YTM JONES COMPOSITE
Last value 0.14 1.58 34529.45 4204.11 13748.74 0.01
Change -17.65% -3.07% 0.94% 1.16% 2.06% 0.00%
*The change for all indices except SOFR is calculated as a difference between values at 21.05.2021 and 28.05.2021. For SOFR
change calculated as a difference between values at 21.05.2021 and 27.05.2021.
US stocks gained on a falling number of new claims for unemployment benefits, and economic data such as
strong manufacturing PMI, yet market trading volume was thinner. This week the May jobs report will be
published May which is a major event for US stocks. The Dow Jones and S&P 500 indexes rose by 0.94%
and 1.16% WoW, respectively.
The US treasury yield curve shifted parallelly down 1-7 bps as the FED indicated higher than expected
inflationary pressure may be temporary. In April, US PCE core inflation rose 3.1% which is well above the
inflation target of 2%.
© Cbonds.com | Weekly Market ReportCurrency Rate Indices
Currency rate indices track US dollar dynamics relative to foreign currencies. They are calculated once every
trading day (at close).
© Cbonds.com | Weekly Market ReportICE and Interactive Default Probability Indices
Default probability indices assess the risks on the Sovereign debt market for the respective country. They are
calculated based on CDS for terms of between 3 months and 30 years and calculated once every trading day
(at close).
© Cbonds.com | Weekly Market ReportWeekly Knowledge Hub:
Coronavirus Bonds
Coronavirus Bonds - in a broad sense, these are bonds and Eurobonds that are issued for the purpose of
financing the fight against the COVID-19 pandemic and its consequences. Issuers of such bonds are both
governments of different levels (for example, securities of Guatemala, Ivory Coast, China, Madrid) and
corporations (for example, issues Banco Bilbao (BBVA), Bank Gospodarstwa Krajowego, Inter-American
Investment Corporation).
In a narrow sense, these are bonds that meet certain criteria related to the use of funds raised. Such criteria
are illustrated below with the example of China (it is sufficient to meet one of the two criteria in this
country):
• At least 10% of the funds raised should be used to counteract the epidemiological situation related to
COVID-19: production and sale of medical products, development of the relevant infrastructure, as well as a
number of other purposes, while the remaining funds can be used at the issuer’s discretion: to cover operating
expenses, return previously borrowed funds, etc.The issuer shall be located in one of the most unfavourable
areas in terms of infection spread.
Thus, for the Chinese domestic market, the main purpose of such issues is not (or is not necessarily) to
finance the fight against the consequences of the epidemic, but they are associated with the need of the
government to attract additional funds to fight the pandemic.
China offers a simplified issuance procedure for Coronavirus Bonds which allows issuers to get funding for
their purposes faster than in the case where companies issue ordinary bonds.
Issuers of Coronavirus Bonds in China are both political banks (issue China Development Bank), medical
organisations (issue Humanwell Healthcare Group) and issuers not related to government or medicine
(issues Kunming Iron & Steel Holding, Shandong Hi-Speed Group).
Read more about bond types in the Cbonds glossary
Contact details:
Dmitrii Larionov, Specialist of the International Debt Markets Department,
d.larionov@cbonds.info
Paresh Nemade, India Representative,
tel: + 91 9221297616, pareshnemade@cbonds.info
Cbonds subscription:
pro@cbonds.info
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