S&P fell 0.7% and Nasdaq was down 0.9% as equities continued to fall for a second day. Netflix shares were down 9% after-market after reporting a slowdown in subscribers. US10Y Treasury yields fell 5bp to 1.57%. European equities fared worse with DAX down 1.6% while CAC and FTSE were down 2%. US IG CDS spreads were 1.4bp wider and HY was 6.4bp wider. EU main CDS spreads were 1.1bp wider and crossover spreads widened 6.2bp. Asian equity markets are lower by 1% today after Wall Street’s losses yesterday and Asia ex-Japan CDS spreads have widened 5.4bp. It’s a busy day at the primary markets with six new dollar deals launched including Malaysia, Sino-Ocean and BOC.
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Kaisa Group raised $200m via a tap of their 9.75% 2023s at a yield of 9.15%, 30bp inside initial guidance of 9.45% area. The bonds have expected ratings of B2/B and received orders over $2.2bn, 11x issue size. Asia bought 88% and Europe 12%. Fund managers received 76%, private banks 14% and corporates 10%. Proceeds will be used for offshore debt refinancing. The bonds were issued alongside a tender offer for its $300mn 7.875% bonds due June 9, 2021 and $400mn 7.875% bonds due June 30, 2021. The purchase price for both the bonds is $1,001.5 per $1,000 in principal. The bonds currently trade at 100.14 and 100.28 respectively.
Taiwan Semiconductor Manufacturing (TSMC) raised $3.5bn via a three-trancher. It raised:
The bonds have expected ratings of Aa3/AA-. In March, TSMC said they planned to issue up to $4.5bn in dollar bonds this year.
Korea Hydro & Nuclear Power raised $500mn via a 5Y bond at a yield of 1.377%, 32.5bp inside initial guidance of T+90bp area. The bonds have expected ratings of Aa2/AA and received orders over $2.5bn, 5x issue size. The issuer is wholly owned by Korea Electric Power Corp (Kepco) and operates nuclear and hydroelectric power plants.
China Water Affairs Group $ green bond
BOC Aviation $ bond