Financials Credit Analyst

Hank Calenti, CFA

Credit

Risk-on market sentiment pushed Asian bank High Yield and X-over Subordinated debt, as well as X-over Senior Unsecured US$-bond spreads tighter in Q4 2019. We are not convinced that this indiscriminate performance will continue through 2020 although individual investment opportunities remain. Asian bank High Yield Senior Unsecured US$-bonds, in contrast, greatly underperformed in 2019, driven in part by single name risk. The YESIN 3.75% ’23 bond was one to avoid in Q4. This could change in 2020. As we start the year, the CINDBK 4.25 Perp-’21, WOORIB 4.25 Perp-’24 and CHIMIN 3.5 ’21 bonds may have room to improve. Others, such as the ICBCAS 4.25 Perp-’21, RHBCMK 2.503% ’21 and BDOPM 2.625 ’21 bonds, may be overbought. The discussion and tables herein present the investible universe for HY and X-over Asia bank US$-bonds as we see them.  In the coming weeks we will present our top picks and pans from amongst these financial institutions and develop this note into a weekly performance discussion.

Risk-on market sentiment pushed Asian bank High Yield and X-over Subordinated debt, as well as X-over Senior Unsecured US$-bond spreads tighter in Q4 2019. We are not convinced that this indiscriminate performance will continue through 2020 although individual investment opportunities remain. Asian bank High Yield Senior Unsecured US$-bonds, in contrast, greatly underperformed in 2019, driven in part by single name risk. The YESIN 3.75% ’23 bond was one to avoid in Q4. This could change in 2020. As we start the year, the CINDBK 4.25 Perp-’21, WOORIB 4.25 Perp-’24 and CHIMIN 3.5 ’21 bonds may have room to improve. Others, such as the ICBCAS 4.25 Perp-’21, RHBCMK 2.503% ’21 and BDOPM 2.625 ’21 bonds, may be overbought. The discussion and tables herein present the investible universe for HY and X-over Asia bank US$-bonds as we see them.  In the coming weeks we will present our top picks and pans from amongst these financial institutions and develop this note into a weekly performance discussion.

Asian Bank HY Credit Weekly: What Looks Mispriced Entering 2020

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)

Asian Bank HY Credit Weekly: What Looks Mispriced Entering 2020

Risk-on market sentiment pushed Asian bank High Yield and X-over Subordinated debt, as well as X-over Senior Unsecured US$-bond spreads tighter in...

Hank Calenti, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)