SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

iShares China CNY Bond UCITS ETF / Equity Bottom-Up

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Over the first four months of 2021 the Xtrackers FTSE Vietnam Swap UCITS ETF, SPDR S&amp;P 500 ETF, SPDR Straits Times Index ETF, SPDR Dow Jones Industrial Average ETF and Nikko AM Singapore STI ETF were the strongest performers of SGX’s suite of 30 ETFs, averaging 13% total returns.  </li>
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Of the five ETFs that were recipient to the highest net inflows over the four months, three were Fixed Income ETFs:  the ICBC CSOP FTSE Chinese Government Bond ETF, the iShares Barclays USD Asia High Yield Bond Index ETF and the ABF Singapore Bond Index Fund, which saw S$285 million of combined net inflows, 58% of the total net inflows.   </li>
<li>Combined AUM of the 30 ETFs is S$9.2 billion, up from S$5.5 billion 12 months ago. Equity and REIT ETFs have continued to represent 40% of the combined AUM. However, the share of Fixed Income ETF AUM within the total AUM has grown from 34% to 46%, while the share of Gold ETF AUM has declined from 27% to 16%. </li>
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Over the first four months of 2021 the Xtrackers FTSE Vietnam Swap UCITS ETF, SPDR S&amp;P 500 ETF, SPDR Straits Times Index ETF, SPDR Dow Jones Industrial Average ETF and Nikko AM Singapore STI ETF were the strongest performers of SGX’s suite of 30 ETFs, averaging 13% total returns.   

Of the five ETFs that were recipient to the highest net inflows over the four months, three were Fixed Income ETFs:  the ICBC CSOP FTSE Chinese Government Bond ETF, the iShares Barclays USD Asia High Yield Bond Index ETF and the ABF Singapore Bond Index Fund, which saw S$285 million of combined net inflows, 58% of the total net inflows.    
Combined AUM of the 30 ETFs is S$9.2 billion, up from S$5.5 billion 12 months ago. Equity and REIT ETFs have continued to represent 40% of the combined AUM. However, the share of Fixed Income ETF AUM within the total AUM has grown from 34% to 46%, while the share of Gold ETF AUM has declined from 27% to 16%. 


Equity ETFs Rank as Top YTD Performers, as Bond ETFs Capture Most Inflows 

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

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...

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

The S&amp;P gained 0.3% while Nasdaq slipped 0.5% on Monday. The US ISM Manufacturing Index fell to 60.7 in April from March’s 37Y high of 64.7 and well below the 65.0 market forecast. US 10Y Treasury yields slipped 3bp to 1.60%. Meanwhile, the US Treasury announced an increase in projected government borrowing in 2Q2021 to $463bn due to pandemic-related spending. US IG CDS spreads were 0.2bp tighter and HY tightened 1.3bp. Asian equity markets are mixed with China’s equity index shut for labor day. Asia ex-Japan CDS spreads were 1.6bp tighter with five new bond deals launched this morning.

Changi, Khazanah, Newcastle Launch Bonds; Macro; Rating Changes; New Bond Issues; Talking Heads; ...

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)

Equity ETFs Rank as Top YTD Performers, as Bond ETFs Capture Most Inflows

Over the first four months of 2021 the Xtrackers FTSE Vietnam Swap UCITS ETF, SPDR S&P 500 ETF, SPDR Straits Times Index ETF, SPDR Dow Jones...

Singapore Exchange Ltd (SGX)

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

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

Changi, Khazanah, Newcastle Launch Bonds; Macro; Rating Changes; New Bond Issues; Talking Heads; ...

The S&P gained 0.3% while Nasdaq slipped 0.5% on Monday. The US ISM Manufacturing Index fell to 60.7 in April from March’s 37Y high of 64.7 and...

BondEvalue

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