Skip to main content

Featured Post

Market Daily Report: Bursa Malaysia Ends Higher In Line With Most Regional Markets

KUALA LUMPUR, Sept 20 (Bernama) -- Bursa Malaysia ended higher on Friday in line with most Asian markets, mirroring gains from Wall Street, where investors welcomed the US Federal Reserve's substantial interest rate cut. The FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 3.17 points, or 0.19 per cent, to 1,668.82 at the close from Thursday's close of 1,665.65. It opened 5.03 points higher at 1,670.68, trading between 1,668.48 and 1,674.04 throughout the session. In the broader market, gainers outpaced decliners 732 to 468, while 465 counters were unchanged, 850 untraded and 32 suspended. Turnover swelled to 4.19 billion units worth RM5.97 billion, from Thursday's 3.99 billion units worth RM4.08 billion. UOB Kay Hian Wealth Advisors head of investment research, Mohd Sedek Jantan, noted the FBM KLCI's gains were led by utilities, logistics, and banking stocks, reflecting improved market sentiment. Additiona
Post a Comment

Borrowers Rush into Debt Markets with Billions in New Sales Ahead of Central Bank Meetings


 Corporate borrowers are flooding the debt markets to raise cash before central bank meetings this week.

On Monday, ten companies issued new bond deals in the high-grade primary market, while 14 new leveraged loan sales and seven high-yield bond offerings began, according to Bloomberg data.

Royal Caribbean is issuing $1.5 billion in junk bonds to refinance existing debt, and Seaworld has launched a $1.5 billion loan refinancing. Netflix is holding a call with fixed-income investors about a potential blue-chip bond offering.

Borrowers are capitalizing on favorable funding conditions ahead of the Federal Reserve's rate decision on Wednesday, with the Bank of Japan and Bank of England also meeting this week. US high-yield bond market yields are at their lowest this year, and high-grade bond market borrowing costs have decreased this month.

Wall Street banks are arranging new offerings for Enova International, Permian Resources, and Amentum, and preparing high-yield bond deals for Walgreens Boots Alliance Inc and Newell Brands.

Citigroup Inc, JPMorgan Chase & Co, and Sumitomo Mitsui are leading Royal Caribbean's 8.5-year offering, aimed at refinancing 2029 notes with interest rates of 9.25% and 8.25%.

Mercedes-Benz Finance North America is marketing a five-part investment-grade offering. Syndicate desks expect around $25 billion in new issuance this week, with most occurring before the policy statements. July's issuance volume has reached $96.6 billion, the busiest since 2017.

Key Takeaways:

  • Corporate borrowers are issuing new bonds and loans ahead of central bank meetings.
  • Royal Caribbean and Seaworld are refinancing debt with new offerings.
  • Netflix is considering its first blue-chip bond deal since its upgrade.
  • Borrowers benefit from favorable funding conditions in current credit markets.
  • Wall Street banks are prepping additional high-yield bond deals.
  • Significant new issuance expected before policy announcements from the Federal Reserve, Bank of Japan, and Bank of England.

Comments

Post a Comment

Popular posts from this blog

INTC Share Watch and News

Stock Info Market Monitor Company Profile Intel Corporation designs, manufactures, and sells integrated circuits for computing and communications industries worldwide. It offers microprocessor products used in notebooks, netbooks, desktops, servers, workstations, storage products, embedded applications, communications products, consumer electronics devices, and handhelds. The company also offers system on chip products that integrate its core processing functionalities with other system components, such as graphics, audio, and video, onto a single chip. It also provides chipset products that send data between the microprocessor and input, display, and storage devices, such as keyboard, mouse, monitor, hard drive, and CD or DVD drives; motherboards that has connectors for attaching devices to the bus, and products designed for desktop, server, and workstation platforms; and wired and wireless connectivity products, including network adapters and embedded wireless cards used to translat
1 comment
Read more

Analysts See Asset Resilience of Bank of Chengdu Benefiting Hong Leong Bank

Analysts predict that the asset quality of Bank of Chengdu, in which Hong Leong Bank Bhd holds a 19.76% stake, will remain robust due to its strict risk management policies and proactive measures. Key Takeaways: Strong Risk Management Practices : According to CIMB, Bank of Chengdu has adopted a conservative risk culture, performing thorough assessments of location, developer reputation, project viability, and management integrity before financing property projects. The bank closely monitors early warning signals like construction progress, sales progress, budget overruns, and fund usage by developers to mitigate potential risks. Proactive Measures Against Property Slowdown : The bank's precautionary measures allowed it to reduce exposure to problematic property loans and exit risky loans before China's property market slowdown. This conservative approach is expected to benefit Hong Leong Bank by minimizing potential asset quality concerns. Continued Optimism and Buy Recommendat
Post a Comment
Read more

Investors Keep Buying US Junk Debt Despite Weak Protections

  When US-based construction material supplier Wilsonart issued a junk bond to raise US$500 million (RM2.13 billion) for an acquisition this summer, a research firm warned potential investors about the bond's weak protections. The bond’s covenants could allow the company to move valuable assets to another entity and raise more money, potentially disadvantaging bond investors, according to Covenant Review , a research firm. This warning comes amid growing concerns in credit markets as more companies engage in practices like "liability management exercises," where they borrow more against the same assets. These practices, often favoring some creditors over others, have been dubbed "creditor-on-creditor violence," prompting some creditors to unite to protect their interests. Despite the warnings, investors eagerly purchased Wilsonart's offering, underscoring a paradox in US credit markets. While investors face the consequences of weak covenants, they continu
Post a Comment
Read more