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BondEvalue

Bond market data and technology

BondEvalue is a Singapore-based Fintech that specializes in bond market data and technology. The company's information services business offers bond market data on hard-currency corporate & sovereign bonds across Asia, Middle East, Europe and the Americas. The data, which includes bond prices, yields, news and analytics, is offered to end investors via interactive Mobile and Web Apps. Investors can sign up for a free trial of the service either via the company's website (https://bondevalue.com) or by downloading the BondEvalue Mobile App (http://onelink.to/wej7jq). BondEvalue is also developing an electronic bond exchange, BondbloX in Singapore that allows investors to trade bonds electronically in smaller sizes (US$1,000 or equivalent). For more information, visit https://www.bondblox.com/

Bond Market Data and Technology

Credit

Wall Street closed lower on Monday as investors veered away from growth stocks on possible inflation fears. S&amp;P ended 1% lower yesterday after setting a new record on Friday while Nasdaq saw a drop of 2.5%. The drop was on the back of a selloff in tech stocks led by semiconductors companies. Among the losers were Tesla, which dropped 6.4% and Facebook, down 4.2%. Friday’s ransomware cyber-attack continues to paralyze the US’s largest fuel pipeline. US IG CDS spreads were 1.5bp wider and HY widened 4.9bp.  EU main and crossover CDS spreads were flat. Asian equity markets are following the US, off to a negative start, down over 1%. Asia ex-Japan CDS spreads were 0.2bp wider. Asian primary bond markets are at its busiest in over a month with 12 new bond deals today that includes names like Country Garden , Fosun, Studio City  and Vista Land .

12 New Deals Incl. COGARD, Fosun, Studio City; Macro; Rating Changes; New Issues; Talking Heads; ...

S&amp;P ended up 0.7%, setting a new record while Nasdaq closed 0.9% higher with tech stocks rallying. US non-farm payrolls (Term of the Day, explained below) for April rose by just 266k vs. a forecast of 978k, and significantly lower to March’s reading of 770k. US 10Y Treasury yields rebounded to 1.59% after hitting a two month low of 1.47%. The 30Y yield also dropped to 2.16%, its lowest since March 1 before recovering to 2.29%. Friday also witnessed a ransomware cyber-attack on the largest fuel pipeline in US. A prolonged shutdown of the pipeline could result in a spike in the gasoline and diesel prices. US IG CDS spreads were 0.9bp tighter and HY tightened 3.3bp. EU main CDS spreads were 0.8bp tighter and crossover spreads tightened 3.2bp. Asian equity markets are off to a positive start, up ~0.5% while Asia ex-Japan CDS spreads were flat. It’s a busy Monday at the Asian primary markets with nine new dollar deals, including ones from Agile, KWG, CIFI, JSW Hydro and Cathay Pacific .

9 New $ Deals Incl. Agile, KWG, CIFI, JSW Hydro; Macro; Rating Changes; New Issues; Talking Heads...

Financials Credit Analyst

Hank Calenti, CFA

CreditContinuum

Executive Summary: Friday’s jobs report shocker capped off a week which included US Treasury Secretary Janet Yellen needing to be Mirandized. This was followed by the Fed stating the obvious in its financial stability report. Unmentioned in this report is that the role of this Fed is no longer to take away the punchbowl, but instead it is the bartender. The week ended with a jobs report that was the biggest miss in nominal terms, ever.The report was at odds with recent PMI surveys in which respondents stated that it was difficult to hire. This may be the result of frictions in hiring as unemployment benefits as well as child-care needs and postponed school re-openings delay employee re-entry. The truth serum for the US economy may occur around September when extended unemployment payments expire.The market impact was an immediate 10 basis point (bp) drop in the 10-year Treasury while the 2-year note even fell 1bp. Prices on the 10-year gave up these gains as the day progressed, but the smart money, that is the bond market, may be correct with the recent dampening of interest rates suggesting a longer time period to a less accommodative Fed.  The US Treasury bond curve ended the week flatter with short-end yields falling by much less than the longer part of the curve.With rates continuing to push credit spreads, Asia- and European-headquartered banks generated negative total returns in all but the lowest duration notes. There was a clear preference for Additional Tier 1 (AT1) bond issuance over the past week while over US$11 billion equivalent was raised by financial institutions globally in USD and Euros. In what may have been the busiest AT1 bond issuance weeks of the year, five institutions brought over US$6.5 billion in six securities.Nonetheless, this is a great credit environment and spreads which could go even tighter into year-end. A single piece of data, such as April’s non-farm payroll figure, is unlikely to change investor positioning. It may be a little too early to fade the market as fundamentals catch-up.Next week we will get a record-matching $126 billion slate of Treasury auctions. We may also see a robust serving of corporate and financials debt issuance. US consumer-price data is set to be published on Tuesday, 12 May. A sharp annual acceleration is forecast, although the market is likely to dismiss the figure as resulting from a comparison to depressed levels of a year earlier.With peak Q1 earnings season now behind us, Japanese banks will deliver their year-end results over the next week while several other stragglers pepper the remainder of the month. US banks signaled that they anticipate significantly higher interest rates by raising record breaking amounts in the debt capital markets following their Q1 earnings announcements. Other banks may follow with material debt issuance over the next few weeks after reporting earnings.Market Outlook: The question is whether the over-heating narrative will make a comeback and bring rate and tapering expectations closer. Financial stability risks appear binary from here. Either the Fed is over-accommodative, and it sits on its hands too long while asset bubbles over-inflate so that it gets nasty when it moves, or the Fed gets impatient, and it lowers accommodation unexpectedly which creates a risk off reaction. In both cases, curves flatten in a risk-off environment. We suspect the former is more likely, and for now, the Fed remains the bartender.

Executive Summary: Friday’s jobs report shocker capped off a week which included US Treasury Secretary Janet Yellen needing to be Mirandized. This was followed by the Fed stating the obvious in its financial stability report. Unmentioned in this report is that the role of this Fed is no longer to take away the punchbowl, but instead it is the bartender. The week ended with a jobs report that was the biggest miss in nominal terms, ever.The report was at odds with recent PMI surveys in which respondents stated that it was difficult to hire. This may be the result of frictions in hiring as unemployment benefits as well as child-care needs and postponed school re-openings delay employee re-entry. The truth serum for the US economy may occur around September when extended unemployment payments expire.The market impact was an immediate 10 basis point (bp) drop in the 10-year Treasury while the 2-year note even fell 1bp. Prices on the 10-year gave up these gains as the day progressed, but the smart money, that is the bond market, may be correct with the recent dampening of interest rates suggesting a longer time period to a less accommodative Fed.  The US Treasury bond curve ended the week flatter with short-end yields falling by much less than the longer part of the curve.With rates continuing to push credit spreads, Asia- and European-headquartered banks generated negative total returns in all but the lowest duration notes. There was a clear preference for Additional Tier 1 (AT1) bond issuance over the past week while over US$11 billion equivalent was raised by financial institutions globally in USD and Euros. In what may have been the busiest AT1 bond issuance weeks of the year, five institutions brought over US$6.5 billion in six securities.Nonetheless, this is a great credit environment and spreads which could go even tighter into year-end. A single piece of data, such as April’s non-farm payroll figure, is unlikely to change investor positioning. It may be a little too early to fade the market as fundamentals catch-up.Next week we will get a record-matching $126 billion slate of Treasury auctions. We may also see a robust serving of corporate and financials debt issuance. US consumer-price data is set to be published on Tuesday, 12 May. A sharp annual acceleration is forecast, although the market is likely to dismiss the figure as resulting from a comparison to depressed levels of a year earlier.With peak Q1 earnings season now behind us, Japanese banks will deliver their year-end results over the next week while several other stragglers pepper the remainder of the month. US banks signaled that they anticipate significantly higher interest rates by raising record breaking amounts in the debt capital markets following their Q1 earnings announcements. Other banks may follow with material debt issuance over the next few weeks after reporting earnings.Market Outlook: The question is whether the over-heating narrative will make a comeback and bring rate and tapering expectations closer. Financial stability risks appear binary from here. Either the Fed is over-accommodative, and it sits on its hands too long while asset bubbles over-inflate so that it gets nasty when it moves, or the Fed gets impatient, and it lowers accommodation unexpectedly which creates a risk off reaction. In both cases, curves flatten in a risk-off environment. We suspect the former is more likely, and for now, the Fed remains the bartender.

Bank Credit Weekly: Jobs Report Shocker Flattens Curves

S&amp;P was up 0.8% and Nasdaq was higher by 0.4% as both indices staged a late rally. US jobless claims for the prior week fell 92k to 498k, the first sub 500k print since the pandemic broke-out. Markets now await the non-farm payrolls (NFP) data today with expectations of a 978k rise. US 10Y Treasury yields were 1bp lower to 1.57%. US IG CDS spreads were 0.2bp wider and HY widened 0.4bp.  EU main CDS spreads were 0.7bp wider and crossover spreads widened 2.6bp. Asian equity markets are off to a positive start, up ~0.5% while Asia ex-Japan CDS spreads were 0.6bp wider.

Redco Launches $ Tap; Macro; Rating Changes; New Issues; Talking Heads; Top Gainers & Losers

US equities were in the red on Tuesday as the S&amp;P was down 0.7% while the tech-heavy Nasdaq tumbled 1.9% as US Treasury Secy. Janet Yellen commented, “It may be that interest rates will have to rise somewhat to make sure our economy doesn’t overheat”. Yellen later came out clarifying that she did not mean it was time for the Fed to hike rates. US 10Y Treasury yields were marginally lower 1.59%. US IG CDS spreads were 0.5bp wider and HY widened 3bp.  EU main CDS spreads were 1bp wider and crossover spreads widened 5.9bp. Asian equity markets are mixed while Asia ex-Japan CDS spreads were 0.4bp wider.

Naver Launches Tap; Macro; Rating Changes; New Bond Issues; Talking Heads; Top Gainers & Losers

Singapore

iShares Barclays USD Asia High Yield Bond Index ETF is an exchange-traded fund incorporated in Singapore. The Fund seeks to track the performance of the Bloomberg Barclays Capital USD Asia High Yield Bond Index.

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Asia High Yield Bond Index (AHYG SP)

12 New Deals Incl. COGARD, Fosun, Studio City; Macro; Rating Changes; New Issues; Talking Heads; ...

Wall Street closed lower on Monday as investors veered away from growth stocks on possible inflation fears. S&P ended 1% lower yesterday after...

BondEvalue

9 New $ Deals Incl. Agile, KWG, CIFI, JSW Hydro; Macro; Rating Changes; New Issues; Talking Heads...

S&P ended up 0.7%, setting a new record while Nasdaq closed 0.9% higher with tech stocks rallying. US non-farm payrolls (Term of the Day,...

BondEvalue

Bank Credit Weekly: Jobs Report Shocker Flattens Curves

Job data raises uncertainty as the Fed continues to act as bartender. Financial stability risks appear binary while rates push credit spreads. Can...

Hank Calenti, CFA

Redco Launches $ Tap; Macro; Rating Changes; New Issues; Talking Heads; Top Gainers & Losers

S&P was up 0.8% and Nasdaq was higher by 0.4% as both indices staged a late rally. US jobless claims for the prior week fell 92k to 498k, the...

BondEvalue

Naver Launches Tap; Macro; Rating Changes; New Bond Issues; Talking Heads; Top Gainers & Losers

US equities were in the red on Tuesday as the S&P was down 0.7% while the tech-heavy Nasdaq tumbled 1.9% as US Treasury Secy. Janet Yellen...

BondEvalue

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