Fixed Income Weekly 19-Dec-2018

Transcription

1 9-Dec8 Top Traded Fixed Income Securities Corporate Yield Curve Highlights Ntl Rs.M Value Rs.M % TMT.8% SCT R+.% // SBM.7% 8//8 % % % MCB R+.% // 9% % % % 9% 7% 8%.% 8/9/ Foreign Local Share of Debt TMT Corporate Yield [%] UIL CBV OMNI NFLD MCB NMHL NMHL SCT SCT OMNI NMHL SCT ASCE ABCM CIPF CIPF NMHL. NMHL MCB CBV Unsecured Corp Curve MUA Secured Risk Free. 8 Call or Maturity [Yrs] SBM On the SEM s Debt Board TBT of RsM [FP:9%] was driven for the second consecutive week by.% 8/9/ [8%] at a lower YTM of.% (-79bps), followed by MCB R+.% // [9%; FP:7%; NFP: Rs.7M which edged to YTM of.8% (bp). Also fuelling activity was SBM.7% 8//8 inching higher to a YTM of.7% (+bps). At BOM s Auction Friday T-Bills continued their ascent: 9-Day yielded at.% (+bps) while 8-Day yielded at.% (+bps) and -Day at.7% (+bps) both at a Bid-Tender ratio of.x. Evolution of Short-Term Rates Mauritius Yield Curve Interest Rate [%].... Tbill -Day PLIBOR -Day Tbill 9-Day Soverign Yield [%] Current. Previous..7 T-Bills T-Notes Gov-Bonds Tenure M M Y Y Y Y Y Moody's Credit Rating: Baa Y Maturity [Yrs] Y Y Held in Bid to Yield Wk Ended Cover Size.% + -Dec8.7x..% + -Dec8.7x.9.7% + -Dec8.7x.7.% +8 -Aug8.7x..% - -Dec8.9x..7% + -Sep8.8x..% + -Nov8.x.7.% +7 7-Dec8.9x..98% Nov8.x.8.% 7-Sep8.x. A: AXYS Stockbroking Ltd, th Floor, Dias Pier Building, Le Caudan Waterfront, Caudan, Port-Louis, 7 T: () F: () 78 E: researchaxys-group.com W: axysstockbroking.com BRN: C7798

2 9-Dec8 Corporate Bonds Secured OMNI R+.8% 8//9 NMHL R+.8% 7/7/9 CBV R+.% 7// CBV R+.% 7// OMNI R+.% 8// OMNI.% 8// EVACO R+.% // NFLD 7.7% /8/ R+.% //.% //.% //.% // R+.7% 8/9/.% 8/9/ NMHL R+.8% // NMHL.7% // OMNI.8% 8// SCT.7% // R+.7% //.% // R+.% 8/9/.% 8/9/ NMHL R+.% // NMHL.% // SCT R+.% // ASCE.% // CIPF R+.% //7 CIPF R+.% //7 SCT R+.% // UnSub M..77 9M 7 -.8% 9 7.9% Call Sub Jr 797M % 7.%.7.98 UnSub 9M %..9 M -8.7%.%. 9M %.. Zero M % Call 79.% 7 8.% % -.9% 98M.% M %.9 M 79 -.% % Call M 7 8.7%. Call Sub Jr M % Sink UnSub M Sub Jr Clean Dirty Type Rank Size freq. Days 9-Dec Sub Jr 7M.. UnSub M.8.98 Call M. 7M Coupon Premium to Risk Free YTM Fair 7.7. M M M 7. M.7 M Sub Jr. Call M 7M M M Call UnSub M.7% 9. -Jan-.%.. Sink M 7.8%. -Jan-.% Call Sub Jr 8M 77-7.%.7 -Jun-.% -.9%..7% 7.%.9%.%.%.% YTC FV 9-Dec.9% Apr9.9% Call Date -.9 -Jun9.% Nov.8 -Nov-.7% -Nov-.97% -Jun-.9% A: AXYS Stockbroking Ltd, th Floor, Dias Pier Building, Le Caudan Waterfront, Caudan, Port-Louis, 7 T: () F: () 78 E: researchaxys-group.com W: axysstockbroking.com BRN: C7798

3 9-Dec8 Corporate Bonds Unsecured ABCM.% 7//9 UIL R+.% // MCB R+.% // MCB R+.% 8/8/ SBM R+.% // MUA R+.8% /9/ SBM.7% 8//8 Coupon Premium to Risk Free YTM Fair Call YTC Clean Dirty Type Rank Size freq. Days 9-Dec Date 9-Dec..7 Sub M 9 -.%... Sub M 8.% Sub Jr bn.8% Call.bn -.78%.7 8-Feb9.%.. Call.bn 8-8.7%. -Mar9.9%.. Call Sub Jr M 9-7.7%.9 -Sep9.%...8 Sub Jr.bn 9.7% +. FV Corporate Bonds Non-Rupee Coupon Premium to Risk Free YTM Clean Dirty Type Rank Size FX freq. Days 9-Dec E+.% //.. M.% - Fair Call YTC Date 9-Dec..% //..9 8M.9% -. NMH.% //.. M 7.% 98. SBM L+.7% // Call M $.9%. -May9.% SCT E+.% //.. Sub Jr 7M 77.9% 99. SCT E+.% //.9. Sub Jr M 77.% 99. LOF 8.% //..8 Call UnSub Jr M $ 7.8% 8. -Dec.9% SBM.7% 8//..8 Sub Jr 7M $ 9.%.8 FV Preference Shares with Fixed Dividends Dividend Premium to Risk Free DY Fair Redemption YTR Pref. Share LCP VWAP Type Size FX freq. Days 9-Dec Date 9-Dec NMHL(P).%... Conv. M Rs ~8-7.%.7 -Mar9 -.% ASCE(P).%. 8.7 Sink 97M Rs ~9 -,8.% ± 9. -Jun -.8% TPL(P) 8.%. 8. Perpetual 7M Rs ~7 -.% ±.7 on Wind-Up LFL(P).%.. Perpetual M Rs ~7 -.87% ± 9. on Wind-Up LMLC(P).%. 8. Perpetual M Rs ~7-88.% ±.8 on Wind-Up TREVO(P) 7.%.. Perpetual 8M R -9 7.% ± 9.79 on Wind-Up -8-8 A: AXYS Stockbroking Ltd, th Floor, Dias Pier Building, Le Caudan Waterfront, Caudan, Port-Louis, 7 T: () F: () 78 E: researchaxys-group.com W: axysstockbroking.com BRN: C7798

4 9-Dec8 Golden Jubilee Bonds Risk-Free Coupon.% Fixed Type Rank Not Applicable Coupon Frequency Days to Next Coupon 8 Clean Dirty Size Premium to Risk Free YTM 9-Dec Fair Clean Dirty BOM.% //.. M.7%. BOM.% //.. 9M BOM.% // M. BOM.% //.. 78M.9 BOM.% 9//.. M.7%. BOM.% //.. M BOM.% //.. M.7%. BOM.% 7// M BOM.% //.. M.7%. BOM.% 8//.. 9M BOM.% //.. M.7%. BOM.% 9//.. 8M BOM.% //.. 9M.7%. BOM.% //.. 7M.9 BOM.% //.. 7M.7%. BOM.% //.. 7M BOM.% 7//.. 7M.7%. BOM.% //.. M BOM.% 8// M.% +. BOM.% //.. M BOM.% 9//.. M.7%. BOM.% //.. M BOM.% //.. 8M.7%. BOM.% 7//.. M BOM.% //.. M.7%. BOM.% 8//.. 9M BOM.% //.. 9M.7%. BOM.% // M 7 BOM.% //.. 7M.7%. BOM.% //.. 7M BOM.% //.. 8M.7%. BOM.% //.. M BOM.% //.. 8M.7%. BOM.% //.. M BOM.% 9//.. 88M.7%. BOM.% //.. 79M BOM.% //.. 8M.7%. BOM.% 8//.. M BOM.% //.. M.7%. BOM.% 9//.. 77M BOM.% //.. 7M.7%. BOM.% //.. M BOM.% //.. 9M.7%. BOM.% //.. 77M BOM.% //.. 87M. BOM.% //.. 7M BOM.% 7//.. 8M. BOM.% // M BOM.% 8//.. 8M. BOM.% // M.% BOM.% 9//.. M. BOM.% //.. 8M YTM 9-Dec BOM.% //.. M. BOM.% 7//.. 9M BOM.% //.. 8M. BOM.% 8//.. 89M. BOM.% //.. 9M. BOM.% //.. 79M -. BOM.% //.. M. BOM.% //.. 7M -. BOM.% //.. 7M. BOM.% //.. M -. BOM.% 7//.. M. BOM.% //.. 7M -. BOM.% //.. 7M.9 BOM.% //.. 9M -. Size Premium to Risk Free % Fair % A: AXYS Stockbroking Ltd, th Floor, Dias Pier Building, Le Caudan Waterfront, Caudan, Port-Louis, 7 T: () F: () 78 E: researchaxys-group.com W: axysstockbroking.com BRN: C7798

5 9-Dec8 Key Information UIL R+.% // r Rate Maturity where 'R' means BoM's Key Repo Rate =.% Clean is the bond's trading price, while its Dirty includes Accrued Interest. is a "classic" bond, i.e. coupon + redemption at maturity. Call includes option to redeem part/ all before maturity. Sink is part redeemed as per a timetable. Conv. = Convertible into another security. (Un)Sub = (Un)Subordinated. Unsubordinated bondholders rank higher than other secured lenders while Subordinated rank lower. Jr/Sr = Junior/ Senior. Yields annualised for securities with call/ redemption/ maturity >Yr. Premium to Risk Free (RF) is computed using the Yield to Call/Conversion (YTC) first or Redemption (YTR) for Pref. Shares, then Maturity/Perpertuity (YTM/DY) for the rest and compared to the corresponding RF rate as plotted on Pg. Freq. = paymts per year, Days = days remaining until next paymt. The implied Corporate Yield curve uses the time to call or maturity (whichever comes first) against its current YTM. Ntl = Notional Value, i.e. value of of bonds traded if at par (initial) value. Value = Total Value traded on Fixed Income securites. % TMT = "Value" as a fraction of total market turnover (TMT) stated as a percentage. Our Sovereign and Corporate Yield Curves are computed using the Nelson-Siegel Model. We use secondary market data obtained from Bloomberg s E-Bonds platform to estimate the Current Sovereign Yield, and from the SEM s Automatic Trading Systems to derive the corporate curve. Authors Trading Bhavik Desai Akash Baboolall Yuviraj Y A.Putten For investments or divestments in yielding Melvyn Chung Adlette Rioux Damien Malliaté : or or Head of Research Financial Analyst Financial Analyst securities, please liaise with Managing Director Trader Trader Alexis Corson Disclaimer Investment Analyst AXYS Stockbroking Ltd has issued this document without consideration of the investment objectives, financial situation or particular needs of any individual recipient. AXYS Stockbroking Ltd will not be under any liability for loss or damage of any kind whatsoever arising in connection with the contents of this document. This document is not, and should not be construed as, an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. This document has been based on information obtained from sources believed to be reliable but which have not been independently verified. AXYS Stockbroking Ltd makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. AXYS Stockbroking Ltd is a member of the Stock Exchange of Mauritius and is licensed by the Financial Services Commission. A: AXYS Stockbroking Ltd, th Floor, Dias Pier Building, Le Caudan Waterfront, Caudan, Port-Louis, 7 T: () F: () 78 E: researchaxys-group.com W: axysstockbroking.com BRN: C7798