Bonds In Conversation : Sorry America And Thank You.

What does one expect to gain by saying this ?

“I can only say: I’m sorry, America. As a former Federal Reserve official, I was responsible for executing the centerpiece program of the Fed’s first plunge into the bond-buying experiment known as quantitative easing. The central bank continues to spin QE as a tool for helping Main Street. But I’ve come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time.”

It feels like a guilt trip to me so I drew this picture to try and understand better but I still think it looks like a convoluted path to their goals.


The Fed buys USD 85 billion a month in QE3, a program with no time constraints. The BoJ buys USD 75 billion a month, also on uncertain ending terms. And the ECB, not wanting to be outdone, has just hinted yesterday that securities buying may start again.

Markets gaining confidence of further stimulus with each passing day which will be cemented today with Yellen’s confirmation and tomorrow’s Eurozone CPI numbers, which if continue on a weakening trend, will guarantee some action from the ECB in their next meeting. Only China stands apart.

With a record high registered in the S&P 500 last night, we can be assured that the first port of call for the main beneficiary of any stimulus would be equities. At the same time, bonds will not be left behind. Asian credit showing resilience and strength with easy money assured if not from the Fed, then the BoJ and ECB. The question is in the filter through effects into the rest of the economy or whether the buck stops there.

Singapore markets kept busy with new issues out of a UOB Non-Viability Perpetual Capital Securities, Hiap Hoe 3Y re-opening and a 2.5Y KSH new deal.

UOB chanced on the DBS perpetual tender back exercise and market disarray to quickly launch a NC 6Y Basel 3 compliant perpetual at a nice discount to their initial attempt in July.

All 3 deals strongly supported out of the private banking community.

Leaving you with the prices.

USD Asia Bonds


SGD 2013 Issues


SGD 2012 Issues