SGD Corps : Hall Of Shame Update
I am not sure if folks will find this useful but I thought it would be good if readers got an update of last week’s market freeze and whether the risk asset rally after China’s surprise rate cut would have improved market liquidity for this week given that the Chinese real estate names have seen decent rebounds.
We are seeing Pakistan and Ethiopia in the issuance space and reit loans have been pretty active as well.
Mood of caution in the air even for investment grade darlings like Alibaba and the missing free lunch as their bond prices falter. http://www.businessweek.com/news/2014-11-25/bond-buyers-lose-easy-money-trade-as-alibaba-disappoints
And Pacific Andes gets some negative limelight from subsidiary China Fishery’s financial woes and the company is considering a CNH/SGD/USD bond offering to fund their redemption of their new Peruvian subsidiary’s debt. Pacific Andes is coming out with their own rights issue which should be safe for the bondholders of the Pac Andes 8.5% 07/2017 SGD paper.
“China Fishery in September failed to get noteholders of its Lima-based unit Corporacion Pesquera Inca SAC, or Copeinca, to agree to a deal whereby the business in Peru would guarantee as much as $1.2 billion of debt at the parent level. If a solution isn’t found by March 16, China Fishery may have to repay $520 million of a $650 million credit facility early, and redeem $300 million of its own bonds, S&P said last week.
China Fishery intends to redeem the $250 million of 9 percent Copeinca senior notes “by March 2015 in order to reduce future interest expense,” according to a statement to the Singapore stock exchange released after its earnings report on Nov. 22. It didn’t elaborate.” http://www.bloomberg.com/news/2014-11-24/china-fishery-sets-march-deadline-to-redeem-peruvian-unit-s-debt.html
Comparing prices from last week, we notice that bid-ask spreads appear to be tighter but it does not appear investors are willing to cross the wide prices yet and traders are unwilling to sell at a loss. All prices are unverified, of course.
Good luck !