The elevated Treasury yields led to risk aversion in Asia bond market 美債收益率走高,亞洲債市風險趨避情緒一度升溫

The elevated Treasury yields led to risk aversion in Asia bond market

With the 10-year Treasury yield hitting 4.8% overnight, setting a fresh new high since 2007, the risk-averse sentiment deepened in the Asian bond market on Wednesday (10/4), and there was still no major US dollar-denominated bond issuance in the primary market. In the secondary market, as the 10-year US bond yield briefly rose to 4.87% area during the Asian session, real money investors were selling medium to long-term bonds. Credit spreads for Asia IG widened by about 2-5 bps. Among them, Korea IG widened about 3-5 bps, and HK IG widened about 2-4 bps. As the 10-year Treasury yield retreat, risk aversion sentiment improved in the afternoon trading in Asia bond market, with some buying interest at lower levels.

Company Activities
Li & Fung announced a corporate action in mid-September, planning to buy back some of its 2025 US dollar bonds, with a face value of about USD 523 million. If investor consent is obtained by September 29, the company will buy back the bonds at 94 cents on the dollar. If investor consent is obtained by October 16, the company will buy back the bonds at 91 cents on the dollar. On Wednesday (10/4), the company reported that it had received responses from investors in the first phase, and it plans to repurchase USD 191.3 million in face value of the 2025 US dollar bonds, expecting the outstanding principal to decrease to about USD 331 million.

Secondary market
• LIFUNG 2025 senior bonds are priced at around 93 cents with a yield of around 9.2%.
• LIFUNG perpetual subordinated bonds are priced at around 37 cents with a yield of about 14.2%.

美債收益率走高,亞洲債市風險趨避情緒一度升溫

由於前一晚十年期美債收益率升破4.8%,再度創下2007年以來的新高,週三(10/4)亞洲債市開盤的風險趨避情緒明顯升溫,初級市場仍無重大美元計價債券發行。次級市場方面,伴隨著十年期美債收益率於亞洲時段一度走高至4.87%附近,實質資金投資人拋售中長天期債券,亞洲投資等級標的之信用利差走寬約2~5bps,其中韓國投資等級標的之信用利差走寬約3~5bps,香港投資等級標的之信用利差走寬約2~4bps。午盤過後,十年期美債收益率自高位回落,亞洲債市的風險趨避情緒改善,出現部分低接買盤。

公司活動
利豐於9月中旬發出公司活動公告,計畫買回部分2025年期美元債券,此券目前流通在外的面額約5.23億美元。若於9月29日之前取得投資人同意,公司將以94元(每百元,以下同)買回債券。若於10月16日之前取得投資人同意,公司將以91元買回債券。公司於週三(10/4)表示,已收到第一階段投資人回覆,將買回2025年期美元債券的面額約1.91億美元,預期流通在外的面額將降至約3.31億美元。

次級市場
• 利豐(LIFUNG)2025年主順位債券價格約93元,收益率約9.2%
• 利豐(LIFUNG)永續次順位債券價格約37元,收益率約14.2%