Halister News

(Bloomberg) -- While high-yield bonds may continue rally, not time to expand holdings significantly given asset class isn’t out of “the woods yet when it comes to fundamentals,” says Todd Youngberg, global head of credit at Aviva Investors.

• Says in interview in Taipei that U.S. company earnings still weak; sees two Fed rate increases this yr but need more clarity on tightening path before adding to HY holdings
• Expects ECB to cut rates further, expand asset purchases to include investment-grade bonds
• Recommends U.S. consumer bonds amid increased spending on homes and cars
• While valuations of U.S. HY bonds are turning more attractive vs Europe, is still overweight on latter as there’s less commodity exposure and monetary policy is more accommodative
• Still cautious on IG bonds as issuer leverage and supply are rising; sees value in Canadian notes in this space
• NOTE: Bloomberg’s Global HY Corporate Bond Index has rebounded 5.3% from a 3-yr low reached in Jan.

(Bloomberg) -- Inditex FY 2015 LFL sales rose 8.5%.

• Co. comments in regulatory filing
• Inditex fy sales EU20.9b
• Inditex fy gross Margin 57.8%
• Inditex local fx store, online sales rise 15% Feb. 1-Mar. 7
• Inditex to propose EU0.60/shr dividend
• Inditex fy net EU2.88b; est. EU2.9b

(Bloomberg) -- Rizal Commercial Bank or RCBC investigating an $81m deposit and transactions related to account, Vice Chairman Cesar Virata says in statement.

• NOTE: Virata issued statement after Philippine Daily Inquirer on Wednesday reported $81m allegedly stolen by computer hackers from Bangladesh central bank entered Philippine banking system and released to local clients of RCBC Link; entry of additional $870m allegedly foiled after international banks recalled transfer order
• RCBC’s internal investigations will involve board-approved committee and will be assisted by auditing firm SGV, a member practice of Ernst & Young: Virata
• RCBC submitted required reports to Anti-Money Laundering Council, will cooperate with government regulators
• Banks’ principal shareholders -- Yuchengco family, Taiwan’s Cathay Life, World Bank’s IFC -- fully committed to banking laws, regulations particularly anti-money laundering rules: Virata
• RCBC cognizant of bank secrecy obligations, will “at all times” maintain confidentiality of its account: Virata
• RCBC will issue subsequent reports, statements as probe progresses: Virata
• Philippine central bank Governor Amando Tetangco, who heads the nation’s Anti-Money Laundering Council, did not reply to mobile-phone messages seeking comment on Inquirer report and Bangladesh central bank’s statement
• NOTE: Fed Responsible for Missing $100 Million, Bangladesh Says Link
• NOTE: Philippine Senate blue ribbon committee to hold March 15 public hearing on alleged money laundering transaction
• NOTE: Philippine Gaming Regulator Probes Alleged Money- Laundering Link

(Bloomberg) -- A roundup of debt rating changes of Indian cos. To get this story sent to your inbox in real-time, run NI INRATINGS , click on Display & Edit, then Set Alert Delivery. DOWNGRADES:

• Chhattisgarh Steel
  • Long-term bank facilities cut to D from B+ at Care Ratings
  • Cites ongoing delay in servicing debt obligations

• D C Metals
  • LT loan facilities cut to D from B at Crisil
  • Cites “continuously overdrawn” bank limits

• Kamineni Steel
  • LT bank facilities cut to D from BB- at Care Ratings
  • LT bank facilities of Kamineni Health also cut to D from BB at Care Ratings
  • Cites delays in debt servicing

• Inesh Realtors
  • NCDs cut to BB from BB+ at Crisil
  • Cites slower-than-expected implementation of project

• Sathya Lifestyle
  • LT bank facilities cut to D from BB at Care Ratings
  • Cites delay in debt servicing

UPGRADES:

• Ashutosh Container
  • Find based limits revised to BBB from BBB- at ICRA
  • Cites “significant improvement” in capital structure due to pre-payment of a large portion of term debt

• Coastal Marine Construction
  • Fund based limits revised to A+ from A at ICRA
  • Cites healthy inflow of orders in past fiscal yr

• Haldia Petrochemicals
  • LT bank facilities revised to BBB from BBB- at Care Ratings
  • Cites improvement in financial performance, liquidity position in first 10 mos. of FY16

(Bloomberg) -- BOK may hold benchmark rate while taking dovish stance after assessing high levels of household debt, impact of recent rise in oil price on inflation, and data indicating slowing growth, Bloomberg strategist David Finnerty writes.

• 7-day repo rate to be left at 1.50% according to 11 economists in Bloomberg survey; seven predict 25 bps cut to 1.25%; decision due tomorrow
• At last meeting in Feb., BOK said domestic economy would continue recovery, though uncertainties surrounding growth path had increased
• Since then, data signaled a weakening economy:
  • Feb. consumer confidence fell to 98, lowest level since June
  • Jan. industrial production dropped 1.8% m/m seasonally adjusted, lowest reading since Jan. 2015
  • Feb. exports fell 12.2%, extending run of y/y declines
• Household debt continues to rise, and may be spurred higher by rate cuts; Brent crude also near $40/bbl, signaling price may have bottomed, which could lead to CPI moving higher
• NOTE: David Finnerty is an FX strategist who writes for Bloomberg. The observations he makes are his own.

(Bloomberg) -- Baht gains; Thailand’s economy likely to grow more than 3% this year, which is still “too low” to escape middle-income trap: Finance Minister Tantivorawong; economy grew 2.8% in 2015.

• China sets yuan reference rate lower for first time in five days; will continue implementing prudent monetary policy with a balance between tightening and easing: PBOC’s Yi; nation will adjust tax scope and rate for consumption tax: MOF official; PBOC has relied on “stealthier measures” to shore up reserves, including asking CIC to sell overseas assets: Daiwa
• Won falls for second day; South Korea faces large external uncertainties including a slowing Chinese economy, Fed’s policy tightening and lower oil prices, Finance Ministry says in monthly economic report.
• Aussie weakens for second day against dollar; Australia’s home loans fell 3.9% in January, biggest drop since May; median estimate was for 3.0% decline; budget set down for May 10, election to be held in second half of year: PM Turnbull; Treasury review finds forecasters struggle with shocks
• Kiwi halts two-day drop against dollar; New Zealand’s retail credit card spending rose 0.7% in February, rising for tenth straight month; median estimate was for 0.3% increase
• Ringgit drops; Bank Negara Malaysia will keep benchmark rate at 3.25% when it meets today, according to all 20 economists in Bloomberg survey; decision will be Governor Zeti’s last before she steps down following 16 years at the helm
• Treasuries fall, with yield on 10-year bonds up 1 bp to 1.841% in Asian trading; data tomorrow will show U.S. initial jobless claims for week ended March 5 were 275,000 after 278,000 in prior week: Bloomberg survey
• Financial markets in Indonesia closed for a holiday