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Despite fears of a second wave and a resurgence of Covid-19
cases, recent trends persisted into June with many equity, credit
and commodities markets continuing to rally.
In Singapore, the circuit breaker that had been in effect since
April, ended on 1 June 2020 and by 19 June the citystate had
embarked on its "phase 2" of safe reopening. June saw the
city-state begin to somewhat favour "risk-on" again, at least in
fixed income.
The non-sovereign segment of the SGD fixed income market gained
(+0.77%) over June with financials comprising the top-five best
performing securities. Conversely, Singapore Government Bonds lost
ground (-0.65%) dragging the overall index down (-0.19%) for the
month. Longer dated government and sub-sovereign related debt were
amongst the worst performers. In general higher grade credit
performed worse relative to A, BBB and High Yield rated bonds, as
seen in the table below.
As the first half of 2020 (arguably the most disrupted year in
recent history) draws to a close, we note the overall SGD index has
registered a year-to-date performance of +5.26%.
iBoxx
July 2020 Rebalance
The index deleted four bonds from its membership via the July
rebalance. The deletions included three corporates and an S$ 8
billion Singapore Government bond, all removed due to their
expected remaining lives falling below one year.
S$ 885 million of notional was added via two corporates (a 5yr and
10yr).
Please see the table in the full commentary for rating changes
observed in the July 2020 rebalance.
Posted 08 July 2020 by Rahul Sharma, Director - Indices, IHS Markit
IHS Markit provides industry-leading data, software and technology platforms and managed services to tackle some of the most difficult challenges in financial markets. We help our customers better understand complicated markets, reduce risk, operate more efficiently and comply with financial regulation.
