Halister News

(Bloomberg) -- Yeo charged with attempting to avert course of justice and cheating employer BSI, prosecutor says in Singapore court Thursday.

• Yeo now faces total of three charges, including money laundering charge on Apr. 16
• Court told fresh evidence has surfaced in case
• Investigation at “sensitive stage”: Prosecutor Kwek Mean Luck tells court
• Yeo displayed “wanton damaging attitude” towards the investigation: Kwek
• NOTE: From 1MDB Probe, Singapore Charges Ex-Banker With Laundering Link

--PAUL GORDON

(Bloomberg) -- Italy to sell 0.45% 06/2021 for EU1.75b-2.25b, 1.6% 06/2026 for EU2b-2.5b and CCTeu 07/2023 for EU2.5b-3b at 11am CET. Analysts see lack of concession on the curve, though highlight recent underperformance vs SPGBs.

• SocGen (Marc-Henri Thoumin)
  • Both conventional bonds have seen no particular concession on the curve; generally both 5Y, 10Y sectors offers good pick-ups vs shorter-dated BTPs
  • Cross-market both bonds have underperformed their SPGB equivalents, may see some convergence in coming months

• Mizuho (Antoine Bouvet)
  • 10Y has failed to cheapen significantly on the roll, though has put in sector did offer some concession vs neighboring 2023, 2028 maturities
  • Limited concession in the 5Y as roll has been resilient, despite trend of 5Y rolls cheapening into their first tap
  • 5Y has seen some cheapening vs 5Y high coupon issues, mixed performance vs other sectors of BTP curve

• Danske (Anders Moller Lumholtz)
  • Expect bid/covers toward lower-end of range for BTPs given ongoing uncertainty regarding Italian banks, debate about bank treasuries holding large amounts of domestic sovereign bonds
  • Despite recent underperformance vs Spain, solid increase in QE, do not expect “massive” demand

--CRYSTAL CHUI

(Bloomberg) -- Anti-Money Laundering Council filed criminal complaint at Department of Justice against officials of local remittance co. Philrem Service Corp. for allegedly helping launder $81m stolen Bangladesh foreign reserves.

• Named respondents were couples Michael Bautista and Salud Bautista, Philrem chairman and president respectively, and compliance officer Anthony Pelejo
• Philrem allegedly acted as “cleaning house” for stolen money, $61m of which was converted to pesos and transferred to co.’s Rizal Bank account
• Bautistas processed $80.9m, accounted for $63.8m but failed to show ~$17.1m was really delivered: complaint
• Philrem allegedly failed to conduct customer due diligence in currency conversion, withdrawals, deposits and transfers
• “The participation of Philrem is really to wash the funds and conceal the money trail,” according to copy of 17-page complaint
• Philrem lawyer Howard Calleja didn’t answer call and didn’t reply to text message seeking comment
• NOTE: Tax agency filed evasion complaint against couple Link
• NOTE: How $81 Million Slipped Through Philippine Cracks: Timeline Link

(Bloomberg) -- As we approach critical mass in the quarterly earnings season, mixed results thus far are creating a balancing act for credit investors. Numbers highlight relative strengths, weaknesses and macro challenges now facing the corporate and financial issuer base, Bloomberg strategist Simon Ballard writes.

• Fed offered some optimism in U.S. economic outlook overnight, but held off from raising rates again; however, corporate credit metrics likely to be closely watched in coming months for potential impact of higher U.S. yield structure across the corporate quality curve
  • No change in BOJ stimulus despite deflationary pressures and earlier dovish comments; likely to disappoint credit markets at open this morning
• Key European data today include euro-area economic confidence, German inflation
• Risk Appetite Model shows small consolidation moves, but firm tone remains overall
• CDX IG closed -0.8bps at 73.82 in overnight session; iTraxx Asia Ex Japan IG is currently -0.7bps at 139.68

NEWS

• Corporate News
• Electrolux Profit Beats Estimates Amid ‘Healthy’ U.S. Growth
• Fortum 1Q Sales Below Estimate, Sees Nordic Demand Growing 0.5%
• Sony Reports Quarterly Loss, Holds Forecast to Assess Earthquake
• Seiko Epson FY15 Net Income Below Forecast, Falls Y/y
• Anglo American to Sell Niobium, Phosphate Units for $1.5 Billion
• NTT Docomo Forecasts Profits Above Expectations, Plans Buyback

• Financial News
• Deutsche Bank Posts Surprise Profit as Cryan Cuts Expenses
• Daiwa Securities Quarterly Profit Declines 45% on Trading Slump
• Lloyds 1Q Underlying Pretax Profit Beats, CET1 Ratio Rises
• EFG to Buy UBI Banca International’s Private Banking Business
• BBVA Quarterly Profit Drops, Misses Estimates on Lower Trading
• Bank of Ireland Says Continues to Trade as Expected

• Credit Rating News
• S&P Affirms ’BB’ Ratings On Banco Votorantim, Watch Neg

• Other News
• Fed Waits for Economy’s Green Light to Hike as Risks Abate
• BOJ Holds Off More Stimulus to Gauge Impact of Negative Rate

ANALYST VIEWS

• Fear of the unknown can make for a herd-like mentality to investing. With the ECB due to start lifting credit markets, we are positioning ahead of the event and prepared to buy the richest of corporate bond debt in order to get some performance in: creditmarketdaily.com

NEW ISSUES

• City of Mainz EU125m 9/2023 FRN 3mE +35
• EIB GBP500m 1.5% 2/2019 Tap UKT +43
• London & Quadrant Housing GBP300m 10Y UKT +107
• Oma Savings Bank EU110m 3Y FRN 6mE +100
• RAC GBP300m 7Y, GBP600m 10Y Senior Secured Notes
• UBI Banca EU750m 10NC5 Tier 2 Notes 4.25%
• UNEDIC EU500m 10/2022, EU750m 10/2027 Taps
• European IG credit pipeline here and HY credit pipeline here
• Issuers exposed to S-T rollover and interest-rate reset risk here

• NOTE: Simon Ballard is a credit strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.