Vietnam 

Corporate bond an effective tool to raise capital – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

  Bond interest rate now stands at 13-14 per cent per year, therefore strongly attracts the capital of individual investors. — Photo baomoi.vn HÀ NỘI — Bond issuance is becoming a popular channel for firms to raise capital for its efficiency and convenience. In the first six months of 2019, listed companies on the Hồ Chí Minh Stock Exchange (HOSE) raised more than VNĐ19 trillion (US$812 million) via share issuance, up 17.2 per cent compared to 2018. But this only met part of the capital demand as both listed and…

Read More
Home 

The bond market is flashing a recession warning, but that’s no cause for alarm yet

Out driving the other day, an orange warning light appeared on the dashboard. My first thought was not that the engine was about to burst into flames, nor did I abruptly pull over. I continued driving towards where I was going and then I drove home again. My calmness was due to the realisation that warning lights themselves are not a sign that something bad has happened – smoke from the engine would be in this case – but that something bad may happen.The bond market is the same. The global……

Read More
Vietnam 

Banks dominate corporate bond market in first seven months of 2019 – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

  Customers make transactions at a VPBank branch. VPBank was the biggest bond issuer in the last seven months with total value of nearly VNĐ13 trillion (US$552 million). — Photo courtesy of VPBank HÀ NỘI — Banks have been the main player in the corporate bond market so far this year, with eight of the top 10 biggest issuers being financial institutions. Vietnam Prosperity Bank (VPBank) topped the list with bond issuance reaching VNĐ12.86 trillion (US$552 million) in value in the first seven months of the year, the latest debt market report from MB Securities Joint Stock Company…

Read More
China 

China’s July corporate bond defaults jump to a four-month high as funding dries up amid risk aversion in a slowing economy

Company bond defaults in China hit a four-month high in July as a slowing economy and risk aversion triggered by the unexpected seizure of Baoshang Bank marred refinancing prospects at weaker firms.Onshore corporate bond defaults reached at least 14.4 billion yuan (US$2.1 billion) from 14 notes in July, according to data compiled by Bloomberg, bringing the total year-to-date defaults to 70.9 billion yuan from 89 bonds.After two straight months of declines through May, bond delinquencies are… Source link

Read More
Vietnam 

Vietravel explores $30 million bond issuance for aviation projects – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

  Staff at a Vietravel branch in Hà Nội. Nguyễn Quốc Kỳ, General Director of Vietravel, revealed the plan to establish Vietravel Airlines for the first time at a conference in early April. — Photo vietravel.com HÀ NỘI — Local tour operator Vietravel is collecting shareholder opinions on its plan to issue non-convertible bonds worth VNĐ700 billion (US$30 million) to provide supplementary capital for the establishment of Vietravel Airlines. The bonds have a term of two years with a maximum interest rate of 11 per cent per year. The firm also asked shareholders to cancel the…

Read More
Home 

Hong Kong’s Exchange Fund earns record HK$170.8 billion in first half of 2019, driven by bond portfolio as central banks turn dovish

Hong Kong’s Exchange Fund, the war chest used to keep the city’s currency stable against short sellers, reported investment returns of HK$170.8 billion (US$21.8 billion) in the first half this year, a record high, driven primarily by gains in its bond portfolio, according to the Hong Kong Monetary Authority (HKMA). That compared with HK$35 billion in the first half of 2018.After interest and other expenses, the fund reported net income of HK$159.5 billion, according to the HKMA, the city’s de… Source link

Read More
Home 

Private borrowers bear the brunt of China’s soaring bond defaults as slowing economy and trade war put the squeeze on finances

China’s corporate borrowers, especially non-state companies, are missing a record number of bonds, as business conditions worsened amid the slowest economic growth pace in three decades, while a year-long trade war with the US crimped the biggest market for many exporters.Thirty private businesses missed their repayment obligations on 89 issues valued at a combined 60 billion yuan (US$8.7 billion) so far this year, an increase of 150 per cent from the same period in 2018, according to data by… Source link

Read More
Home 

Endangered black rhinos come to the bond market in the world’s first financial instrument for species conservation

The planned sale of a rhino impact bond, aimed at growing the population of the endangered black rhino, is seen by its backers as a test for the creation of a conservation debt market that could be used for everything from protecting species facing extinction to preserving wildlife areas.The sale next year of the US$50 million bond, the first financial instrument for species conservation, is being run by the Zoological Society of London and Conservation Capital. The company was founded in Kenya… Source link

Read More
Vietnam 

Government asks for tight control over corporate bond issuance – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

  A corner of the Văn Phú Victoria real estate project, which is built by Văn Phú-Invest JSC. The company is among property developers that want to raise capital from bond issuance with annual yield rate of 12 per cent. — Photo ndh.vn HÀ NỘI — Deputy Prime Minister Vương Đình Huệ has asked for tight control of corporate bond issuance so the finance and equity sectors operate properly and safely. A number of companies, especially property developers, have offered corporate bonds with high volumes and yield rates (12-14 per…

Read More
Home 

Trade war doubts and central bank loosening have done the unthinkable – brought down bond yields and driven up equities

2019 has seen relentless rallies in both bond and equity markets. Bond yields – or interest rates to you and me – fall as bond prices rise, and this usually reflects some combination of falling growth and inflation expectations. In contrast, equities generally like stronger growth. Therefore, bonds and equities usually move in opposite directions.So how do we explain that US equity indices are at record highs – and global ones not far off – while US 10-year bond government bond yields are back… Source link

Read More