Top Stories from this week's IFR Asia magazine
Released online Saturday 23:00 Hong Kong / Friday 16:00 London
WH Group launched its jumbo Hong Kong IPO at a more conservative price than expected as investors took a cautious stance on the Chinese pork producer’s ability to meld with US-based Smithfield Foods, which it bought last year.
Sino-US United MetLife Insurance is set to issue the first subordinated bond from an insurance joint venture in China in a move that could open to a flood of more than Rmb60bn (US$9.7bn) in insurance sub debt.
Investors desperate for higher-yielding securities are snapping up bonds on offer from speculative-rated countries, potentially ignoring associated political risks in the process.
Asia’s convertible bond market came back in force last week as a softening US tech market led Hong Kong-listed tech firms to try their luck in the CB market instead.
Indian issuers are rushing to the offshore bond market to cash in on the pre-election euphoria as investors bet that the next government will move forward with key reforms.
ICICI Bank has guaranteed a US$450m loan to help Lanco Infratech get back on its feet and also give the lender a way out of a funded position in the troubled conglomerate.
A recent near-default on a high-yield bond from Xuzhou Zhongsen Tonghao New Board Co highlights the lack of transparency and regulation in China’s guarantee industry.
MIE Holdings plans to issue new bonds to exercise a May call on outstanding high-yield notes, a move that may encourage other Chinese issuers to follow suit with similar transactions.
A successful debut offering of Basel III-compliant Tier 2 bonds from Overseas-Chinese Banking Corp last week illustrates that US investors are again warming to callable bank capital from Asia.
Issuers in the Philippines are flocking to the corporate bond market in an attempt to beat expected hikes in benchmark interest rates.
Companies in South-East Asia are marketing potential IPOs totalling US$1.6bn, although recently poor aftermarket performances and a renewed focus on North Asia means new issues from the region may get short shrift.
International Finance Corp plans to ask Indian authorities to approve a new, larger offshore rupee-linked bond programme after its successful inaugural offering provided investors with the rare chance to buy Triple A Indian exposure with a double-digit yield.
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Peters on bank profits, political risk and chocolate-covered sofas
Energy company refinancings dominated Wednesday’s US high-yield deal flow, comprising one E&P add-on and three benchmark size bond deals.
Four US high-grade issuers raised a modest US$2.7bn in the bond market on Wednesday, bringing weekly volumes in this holiday-shortened week to US$12.2bn – bang in the middle of estimates for US$10bn to US$15bn.
Bank of America found strength in the performance of its investment bank, in debt underwriting and fixed income trading in particular, as yet another multi-billion dollar legal settlement related to its legacy mortgage underwriting sand-bagged results.
The rush for junk bonds is threatening to strip out any upside high-yield investors could get from event risk, just as large scale M&A and IPO activity returns to Europe.
California-chartered commercial bank Opus Bank made a subdued Nasdaq debut on Wednesday after earlier pricing its IPO below the bottom end of the range and shrinking the size of its offering amid challenging IPO market conditions.
Bank of America’s five-year CDS tightened about 2bp early on Wednesday to 65.25bp despite a first-quarter loss reported by the bank as it set aside an extra US$6bn to cover litigation expenses.
(Updates to add details of October restructuring in the rates business and good performance of securitised products.)
(Reuters) - Chinese e-commerce giant Alibaba Group is expected to file the prospectus for its US initial public offering next week, sources said on Wednesday, moving closer to what could be the biggest-ever listing by a technology firm.
A major buyside executive has joined the chorus of complaints from derivatives dealers and industry groups regarding the divergent approaches being taken by US and European regulators in implementing G-20 swaps reforms.