Bonds In Conversation : Missing Something In The Bernama Triangle
“There is no real precedent for a case like this. The plane vanished,” Malaysia’s Transport Minister
BUT THERE IS …. THE BERMUDA TRIANGLE !
It is no big deal really, to make a plane vanish. David Copperfield did it before. I saw it years back as a child.
The missing airplane has breathed life to our imaginations and worlds of possibilities, giving the weary markets a chance to forget about the conundrums of Ukraine, China, Japan, Freddie Mac and copper, to give us something else to talk and think about.
Citi summarised 3 conflicting themes the market is facing.
1. Russia/Ukraine crisis intensifying
2. China and risk on commodity inventories
3. US economy – unwinding of weather effects
And thus we had a week of mayhem, confusion, bad weather and bad economic numbers. Little optimism left as the Chinese president promises us that defaults are unavoidable http://www.businesstimes.com.sg/breaking-news/asia/chinese-premier-li-says-debt-defaults-hardly-avoidable-20140313 and S&P margin debt is at a record high. http://www.businessinsider.sg/gundlach-warns-about-margin-debt-2014-3/#.UyMOc4VTqz4
Asia credits, except China, are seeing strong demand with Indonesia (IDR +1.32% vs USD, Jakarta Composite +4.11%) basking away in the limelight, rallying with an urgency and outperforming even the EUR (EURUSD +0.83%), as US treasury yields broke lower along with extraordinary strength in the sometimes safe haven instruments of Gold and Silver.
UOB printed a successful USD Basel compliant Tier 2 and Singapore saw a busy week in a Sabana Reit 4Y at 4%, Amtek Engineering raising SGD 200 mio in a 6.9% 5 year issue and Ezra SGD 95 mio for a 4.75% 2 year note.
We ended the week feeling safer knowing that Temasek stands behind Singaporean firms, buying out Olam and giving us hope that the state will be there to help us out one day should our mortgages fall into arrears ?(just a joke) https://tradehaven.net/market/going-nuts-cashew-nuts-olam-bonds/
My 2 cents worth on markets – we are missing something in this melee, something big and way over our heads. In a strange world where planes go missing from the sky (which makes the bomoh chap right !) when every phone call is monitored, we could be in store for some nasty surprises.
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