Bonds In Conversation : The Peak & Last Frontier
I was reading this piece that made me feel sheepishly left out. Aptly titled on Twitter, WSJ : How much would you have made on peripheral bonds investing at the trough and selling at the peak?
My first question was, what peak are they talking about ? Then came the realisation, they were referring to this current moment as “the peak” versus the trough in 2010.
But, but, but…. even Rwanda (B/B/B) managed to raise 10 year USD at 6.875% which is no mean feat considering the old days just a decade back when Philippines was raising money and paying in the teens of percent.
Unicredit made a come back with a strong USD 750 mio 10nc5 T2 (same terms as the SGD issue) at 6.375% which makes the SGD issue look particularly attractive at 6.75-6.85%.
Back in Singapore, we had a heavy week of issuances kicking off with Courts Asia, a reopening of Tata Communications for another SGD 150 mio, Raffles Education and capping off with a SGD 300 mio benchmark, Tata Steel backed ABJA Investment.
Olam bonds in revival mode after management’s decision to embrace the path to austerity with prices up some 1-2 cents. Cenchi SGD out performed after OCBC recommended a “buy” as a comparable to Raffles Education.
All issues oversubscribed and mostly into the hands of the yield hungry retail buyer while institutions held back. We are starting to see a trend this year, as issuance volumes pale against this time last year. It is the trend of the mighty retail folk as the institutions venture out into the last frontiers of Rwanda, hoping to catch the trough perhaps ?
Leaving you with the usual prices, all unverified.
Bonanza of 2012 Prices
- New Issue Review : Tata Steel 10Y SGD & Raffles Education 5Y (tradehaven.me)
- New Issue Review – Courts Asia Limited (tradehaven.me)