Singapore corporate perpetuals weaken; analysts see market holding up for stronger issuers
Add BT as a preferred source
SINGAPORE’S corporate perpetuals have weakened in the aftermath of Credit Suisse’s debt wipeout, but not by much. Market watchers do not expect the impact to be long-lasting, and said corporates should still be able to tap the perpetual credit market – albeit at higher rates and under tougher scrutiny.
“In terms of second-order impact to the Singapore corporate perpetual market, so far the main impact is on secondary prices, where market participants have become more defensive, leading prices to drift down somewhat,” said Ezien Hoo, credit research analyst at OCBC .
She added that there has not been a significant contagion from the banking space into the non-bank corporate sector, possibly because investors, traders and other market participants are aware that corporate perpetuals are different from Additional Tier-1 (AT1) bonds.
TRENDING NOW
Trickier across borders: Why commercial disputes are getting more complex
Too little, too late? Manila’s billion-dollar bid to ignite its sputtering EV industry
When every phone becomes a satellite phone, what happens to Asia’s telcos?
How BYD disrupted Singapore’s car market – and why the strategy is turning on itself
