Relative Value - SGD Bonds - Ascendas Vs DBS Perpetuals

Lakshmi Iyer, CFA

Debt Capital Markets

<p><a href="https://www.smartkarma.com/entities/aims-amp-capital-industrial" target="_blank" data-smartkarma-citation="entities:933:1" rel="noopener">AIMS APAC REIT (AAREIT SP)</a>   issued a perpetual security on August 6 (5.65% SGD125mn deal).  We think the deal is interesting for several reasons (timing of issue, spread on coupon reset, etc.). We do not expect the bond to tighten significantly as it is correctly priced with respect to the senior debt. </p><div class="content-highlight"><p><em>Fundamental credit research focused on Asian high yield, including coverage of areas which are generally overlooked such as Indian finance companies and non-USD denominated credit (SGD).  Sector agnostic. Research process consists of rigorous bottom-up company analysis combined with spotting market dislocations to provide trade ideas.</em></p></div>

AIMS APAC REIT (AAREIT SP)   issued a perpetual security on August 6 (5.65% SGD125mn deal).  We think the deal is interesting for several reasons (timing of issue, spread on coupon reset, etc.). We do not expect the bond to tighten significantly as it is correctly priced with respect to the senior debt. Fundamental credit research focused on Asian high yield, including coverage of areas which are generally overlooked such as Indian finance companies and non-USD denominated credit (SGD).  Sector agnostic. Research process consists of rigorous bottom-up company analysis combined with spotting market dislocations to provide trade ideas.

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