Stanchart Bonds Update

Stanchart share price down 6% year to date.

stan share price

Last low was 15 Dec 2014 at £ 8.93. Current price £ 904.50.

Latest news out that analysts are of the opinion that the bank would need an additional US$ 4.4 bio of capital to cover their losses on their commodities book for this year.

“The bank faces an increase in risk-weighted assets of $24 billion “as the riskiness of the commodities portfolio is re-assessed,” Credit Suisse analysts led by Carla Antunes-Silva, with an underperform recommendation on shares, wrote in a note. The $4.4 billion would include $2.6 billion in pretax provisioning charges under an adverse scenario, they said.”

As expected, Stanchart credit default swaps are underperforming the rest of their rivals.

Stanchart 5 year Senior EUR CDS

Stanchart 5 year Senior EUR CDS

Stanchart 5Y Subordinated EUR CDS

Stanchart 5Y Subordinated EUR CDS


Bonds are not doing too badly given the massive rally in government bond yields which are buoying prices up despite wider credit spreads.

I summarised a list of benchmark Stanchart papers in USD, EUR and SGD for reference.


The perpetual bond is the only one suffering which is understandable given their need for more capital.

No word out of the bank yet on the analysts comments and with the Bloomberg Global Commodity index down to 2002 levels, it is no wonder the stock is taking the brunt of pain.