Bonds In Conversation Is Back and Sitting Pretty + Tata Intl New Issue Review
2 weeks and everything is sitting pretty while I was gone.
No new issues in SGD unless you want to count that BOC 1Y deal. Hearing the market is lining up for another “nameste” issue in Tata again and possibly CWT, no further information available on CWT at this time.
One Tata is not another Tata. This Tata International is a privately held company, majority owned by Tata Sons Ltd which is rated AAA by ICRA and CRISIL in India. Tata International is rated AA- by ICRA (a local Indian credit rating agency).
Deal details SGD 50 mio for starters, 4.5% cpn for 5Y.
Tata Communications 02/2016 is going pretty tight in the market with banks showing between 101.35 to 101.75 bids and offers between 101.875-102.50.
Tata International has to pay up because private companies have no public accounts and thus, there is little transparency in their business. I would be tempted to say it is probably sitting on higher grounds than Tata Communication by just the business model and their closer association to the mothership – Tata Sons. Yet 4.5% is not a screaming hot buy or decent enough pick up over Tata Comm (3.5% offer for 1Y shorter) and EXIMBK 09/2017 (at 3%).
I would be surprised if any leverage will be accorded by the banks out there for the purchase of this bond. Unless you have some superior information on privately held Indian companies, it is probably safer to sit this one out.
Back to business in SGD bond space.
Stocks sitting pretty, bonds sitting pretty and USDSGD thronging to and fro around the 1.24 handle, as our headaches on the increasingly erratic behaviours of central banks develop into full blown migraines.
Fret not, we will have the MAS Monetary Policy Statement out next Friday for some excitement in our lives and the cliff hanger of a potentially recessionary GDP.
My presumption of the lack of activity in Singapore bond space is based on my assumption that everyone is sitting pretty scared and confused right now as global markets continue on a disconnected rampage off all tangents.
Thus the most likely result would be missing the ride up and the ride down back to square one eventually just as this interesting article I append here for your reading pleasure.
Leaving you with the usual prices (all unverified).
2012 BENCHMARK ISUES
And 2013 New Issues
Till same time next week !!