Mar
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Daily bonds review - March 26, 2009
Filed Under Trader’s view |
Daily bonds review - Principal events -New placements overcame the entire positive ?C U.S. Treasuries
No space for climbing in rubles ?C Eurobonds
Activity improved, but drifted to first echelon ?C Domestic market
No comment
ü WBD bought back 1.65% of share capital from the market
ü According to the company’s message, SITRONIKS accumulated the amount, required for complete and timely offer execution on 01 series bonds
ü The amount of claims against DVTG-Finance due to non-execution of liabilities on bonds exceeded 1 bn RUR
ü Gross plants are loosing bailsmen: Kristal, JSC filed a claim on its bankruptcy, and the property of Grad, JSC went to Nomos-bank due to debt (Commersant)
ü AvtoVAZ executed its liability in the full volume on market bonds of 1st and 2nd issues and due coupons, having paid off more than 2 bn RUR
ü Marshall Capital Partners negotiated purchase of the additional emission of Pharmacy Network 36.6, JSC, which allowed it to gain 25% control over the group’s business (Commersant)
ü RBC tolerated double technical default on 4 series market bonds via having not paid coupon and the body
ü Tatfondbank placed debenture issue for 2 bn RUR in full volume
Foreign Stock market
US Treasuries
New placements overcame the entire positive.
The second auction on placing 5-year treasuries, out of three planned ones for this week by U.S. Treasury, indicated gradual decrease of interest to the state notes. So, bond placement was planned to amount 34 bn USD, but the sum total volume of proposals formed about 68 bn USD. So demand to offer ratio totaled just 2.02, while a month ago the figure was at the level of 2.21. Together with the climbing at the share market, which in its turn was due to unexpectedly positive stats on orders of long-term use goods and increase of new houses selling volumes, the treasuries quotes reduced the entire curve long.
The base assets market did not managed to climb even with the help of the fact that yesterday FED started redeeming notes from the market, having gathered treasuries with due date in February 2016 to February 2019 for the amount of 7.1 bn USD.
Today the revised data on GDP and private spending for 4Q 2008 is expected in the U.S., and also the data on unemployment. Besides, the address to the Congress by Tim Geithner is expected on Thursday. At the same time, the third auction is planned by FED to take place today. This time 7-year notes will be placed for the amount of 24 bn USD. The results should clear out the actial situation with demand dynamics for the state notes.
Foreign shares market
Eurobonds
No space for climbing in rubles.
At the Russian Eurobond market the situation is similar: short-term currency issues (up to 1 year) are being sold in order to enter longer term issues. In ruble segment that is almost impossible to be done due to lack of notes and them being mostly short ones. As a result, the prices seem to be overheated, however, no selling is indicated.
Domestic Stock market
Activity improved, but drifted to first echelon.
Trade activity grew significantly. The main volume of deals was indicated within the A1 list (Mos.obl. 8, MGor-45, MGor-50, VTB-5, VTB-6, Tatfond-4, etc.). Note that while the quotes climb, the participants began changing to the longer term issues due to search for higher yield.
Activity remains rather high. The credit market is still not operating, which provides debt markets with the necessary support. The situation at the currency markets also provides for investments in ruble assets.
Daily bonds review - March 26, 2009 (PDF)