January 23, 2025 10:28 GMT
EM ASIA CREDIT: Credit Supply: (PHILIP, Baa2/BBB+/BBB) - New Issue FV
EM ASIA CREDIT
Credit Supply: Philippines (PHILIP, Baa2/BBB+/BBB)) - New Issue FV
New Issue: $Bmark 10y and 25y sustainable
IPT: 10y T+120 area, 25y 6.1% area
FV: 10y T+85bp, 25y 5.8%
In terms of our fair value assessment of the new fixed deals, we focus on the existing issuer curve, taking bonds greater than $300m and those that have been issued in the last 3 years.
As illustrated in the chart (below) the fair value on the 10y is estimated around135bp in z-sprd terms (T+85bp) and for the 25y 175bp (5.8%).
The new issue premium for the 10y & 25y being around 35bp & 30bp respectively.

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