US markets broke the three day falling streak led by Tech stocks. S&P ended higher by 1% and Nasdaq was up by 1.8%. Tesla gained 4.1%, Apple rose 2.1% and Nvidia was up 3.9%. US 10Y Treasury yields fell ~3bp to 1.63% on the back of weaker than expected US Philly Fed manufacturing reading in May at 31.2, falling from 50.2 in April. On the other hand, US jobless claims dropped to 444k, better than expectations and indicating labor market momentum. European Indices were also up with DAX leading the gains, up 1.7% followed by CAC at 1.3% and FTSE at 1%. US IG CDS spreads were 0.7bp tighter and HY spreads were 4.4bp tighter. EU main spreads were 0.5bp tighter and crossover spreads widened 3bp. Asian equities started the day modestly lower ~0.3% with Asia ex-Japan CDS spreads widening 3.6bp.
If yes, do attend the upcoming masterclass conducted by debt capital market professionals Pramod Shenoi, Head of Research APAC at CreditSights and Rahul Banerjee, Founder and CEO at BondEvalue. The session will cover understanding the AT1 structure, common features & covenants, and how to pick the right AT1 bond(s) for you. Click on the banner below to register.
Keppel Land Ltd raised S$280m via a 5Y bond at a yield of 2%, or 5Y SOR + 99bp. The bonds were unrated and received orders over S$300mn, 1.1x the issue size. The issuance was upsized from S$150mn. Fund managers/insurance companies received 52%, public sector/banks 41% and private banks/corporates 7%. Singapore took 100% of the issuance. This is the lowest coupon for a Keppel Land 5Y deal in the last decade, said a banker following the deal.
Changxing Urban Construction raised $180mn via a 3Y credit-enhanced green bond at a yield of 2.6%, 20bp inside initial guidance of 2.8% area. The bonds were unrated and proceeds will be used for onshore project investment and construction, debt refinancing and working capital. The bonds have the support of an irrevocable standby letter of credit provided by Huishang Bank.
Nanning Communications Investment Group raised $300mn via a 3Y bond at a yield of 3.5%, 40bp inside initial guidance of 3.9% area. The bonds have expected ratings of BBB-, and received orders over $700mn, 2.7x issue size. Proceeds will be used to fund onshore project construction.
Join us for a complimentary webinar on how to leverage the BondEvalue App to better track and manage your bond investments. The session will cover key features of the App such as setting up your bond portfolio, screening for bonds, tracking new bond issues, setting up alerts and more. Click on the image below to register.