Bond market data and technology, BondEvalue

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 ended the week on another high. S&amp;P expanded its gains to squeeze out another record on Friday as it closed 0.2% higher while Nasdaq also gained 0.4%. Strategists say that the inflation witnessed in the US over the past two months is transitionary. Tech and Financials were 0.6% higher while Healthcare was down 0.7% as it reversed some of its earlier gains. US 10Y Treasury yields moved in a tight range to end at 1.46%. European stocks ended higher with DAX and CAC rallying 0.8% and FTSE gaining 0.7%. Spreads across witnessed another day of tightening – US IG and HY CDS tightened 0.6bp and 2.7bp respectively. EU main and crossover CDS also tightened by 0.8bp and 4.3bp respectively. In the Gulf, the Saudi TASI ended up 0.9% while UAE’s ADX was flat. In Latam, Brazil’s Bovespa was down 0.5%. Asian markets are flat with China and HK closed due to a holiday while Asia ex-Japan CDS spreads tightened 1.1bp.

Macro; Rating Changes; New Issues; Talking Heads; Top Gainers & Losers

S&amp;P hit another record high despite the higher consumer price index (CPI) numbers for May. The S&amp;P was up 0.5% and tech heavy Nasdaq was up 0.8%. Healthcare, Real Estate and IT found favor with investors, up 1.7%, 1% and 0.8% respectively, compared to financials which were down 1.1%. The much awaited US CPI for May came in at 5% YoY vs. expectations of 4.7% and 0.8% higher than the April reading, making it the highest reading since 2008.  A Fed report on Thursday also revealed that US household wealth rose to a record $136.9tn at the end of March, which augurs well for growth. US jobless claims for the prior week fell to 376k in line with expectations. Despite the positive data, US 10Y Treasury yields were down 5bp at 1.43%. In Europe, DAX and FTSE were largely stable and CAC was down 0.3%. US IG and HY CDS tightened 1.3bp and 4.7bp respectively. EU main and crossover CDS also tightened by 0.8bp and 4.6bp respectively. Gulf markets ended marginally higher with Saudi TASI and UAE’s ADX up 0.1%. Latam markets also closed higher with Brazil’s Bovespa up 0.1%. Asian markets have had a mixed start with Shanghai down ~0.3% while HSI is up ~0.4% and Asia ex-Japan CDS spreads widened 0.4bp.

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

Broader stock markets ended lower even as the US labor markets strengthened with weekly jobless claims dropping below 400k for the first time since the pandemic started. The ADP May Employment Report revealed stronger than expected new jobs added of 978k. All eyes are now on the Non-Farm Payrolls numbers for May that will be released later today. The S&amp;P was down 0.4% and Nasdaq was down 1.1% with Consumer Discretionary and IT down 1.2% and 0.9% respectively leading the losses. US 10Y Treasury yields were up 4bp to 1.63%. In Europe, FTSE and CAC were down 0.6% and 0.2% respectively while DAX closed higher by 0.2%. Both, US IG CDS and HY CDS spreads widened 0.8bp and 3.6bp. EU main and crossover spreads also widened 0.7bp and 3.22bp respectively. Asian stocks followed the US markets and are mixed – Nikkei is down 0.4% and Shanghai, Hang Seng are up 0.2% each with Asia ex-Japan CDS spreads widening 1bp.

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

US markets ended flat with the S&amp;P and Nasdaq down ~0.1%. May data was upbeat on US Manufacturing with the ISM Manufacturing PMI registering a 61.2 print vs. 60.7  in April supported by the opening up of the economy. Energy was up 3.9% while health care was down 1.6%. US 10Y Treasury yields were down 1bp to 1.61%. European markets also continued gains as the Markit Eurozone Manufacturing PMI improved to a new high of 63.1  in May on strong economic recovery. DAX was up ~1%, FTSE was up 0.8% and CAC was up ~0.7%. US IG CDS spreads were 0.6bp tighter and HY spreads were 2.8bp tighter. EU main spreads were 0.7bp tighter and crossover spreads tightened 1.6bp. Asian equities are off to another soft start with Nikkei up 0.2%, Hang Seng and Shanghai down 0.2% and 0.4% respectively with Asia ex-Japan CDS spreads widening 0.5bp.

TML, Indonesia, SMC Launch $ Bonds; Macro; Rating Changes; New Issues; Talking Heads; Top Gainers...

Financials Credit Analyst

Hank Calenti, CFA

CreditContinuum

Executive Summary:  A slightly declining US interest rate yield curve aided in driving credit spreads tighter during the month of May while Asia’s bank credit market conditions remained largely positive, despite the recent flare-up in Covid-19 cases across the region. Global market liquidity metrics continued to push investors into risk assets and Asia’s bank debt benefitted from concerns in other parts of the market.Asia’s Tier 2 bonds slightly outperformed Additional Tier 1 (AT1) bonds during May. Both bank debt capital components generated positive total returns during the month. Given five-year effective durations, Asia's AT1 bonds have generated slightly positive total returns year-to-date while Tier 2 notes lag. As with April, Asia’s (x-Japan) US$-denominated bank bond performance diverged by duration during the month of May. Shorter-duration bonds outperformed and, for the most part, longer duration notes underperformed in Option Adjusted Spread terms.Longer duration, high BB rated bonds led spread widening over the month. These bonds were also predominantly Basel III debt capital securities. Unlike in April, there was a mixture of low and high spread bonds amongst underperformers. This suggests greater investor differentiation, via credit fundamentals, in longer duration notes.

Executive Summary:  A slightly declining US interest rate yield curve aided in driving credit spreads tighter during the month of May while Asia’s bank credit market conditions remained largely positive, despite the recent flare-up in Covid-19 cases across the region. Global market liquidity metrics continued to push investors into risk assets and Asia’s bank debt benefitted from concerns in other parts of the market.Asia’s Tier 2 bonds slightly outperformed Additional Tier 1 (AT1) bonds during May. Both bank debt capital components generated positive total returns during the month. Given five-year effective durations, Asia's AT1 bonds have generated slightly positive total returns year-to-date while Tier 2 notes lag. As with April, Asia’s (x-Japan) US$-denominated bank bond performance diverged by duration during the month of May. Shorter-duration bonds outperformed and, for the most part, longer duration notes underperformed in Option Adjusted Spread terms.Longer duration, high BB rated bonds led spread widening over the month. These bonds were also predominantly Basel III debt capital securities. Unlike in April, there was a mixture of low and high spread bonds amongst underperformers. This suggests greater investor differentiation, via credit fundamentals, in longer duration notes.

Bank Credit Compass: Asia Tier 2 and Short Duration Notes Sit in the Sweet Spot

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)

Macro; Rating Changes; New Issues; Talking Heads; Top Gainers & Losers

Wall Street ended the week on another high. S&P expanded its gains to squeeze out another record on Friday as it closed 0.2% higher while...

BondEvalue

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

S&P hit another record high despite the higher consumer price index (CPI) numbers for May. The S&P was up 0.5% and tech heavy Nasdaq was up...

BondEvalue

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

Broader stock markets ended lower even as the US labor markets strengthened with weekly jobless claims dropping below 400k for the first time since...

BondEvalue

TML, Indonesia, SMC Launch $ Bonds; Macro; Rating Changes; New Issues; Talking Heads; Top Gainers...

US markets ended flat with the S&P and Nasdaq down ~0.1%. May data was upbeat on US Manufacturing with the ISM Manufacturing PMI registering...

BondEvalue

Bank Credit Compass: Asia Tier 2 and Short Duration Notes Sit in the Sweet Spot

Asia’s Tier 2 notes slightly outperformed AT1 in May. Shorter-duration bonds outperformed although there was greater differentiation in longer...

Hank Calenti, CFA

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