Asia Tech & New Economy
Asian technology and communications issuers.
The Asia Tech & New Economy theme covers technology and communications issuers across the region. Nine of the ten screened bonds are USD notes from SoftBank Group, so the theme is effectively a concentrated view on one Japanese communications credit. SoftBank's USD curve yields roughly 8.6% to 9.8%. The 9.75% 2034s (YTW 9.783%) and 9.25% 2032s (YTW 9.26%) stand out, as both are rated BB+ and trade close to par, which limits price risk on entry. Longerdated paper adds spread for those willing to accept more credit risk. The 8.25% 2065s (YTW 9.225%, priced at 89.74) are rated B+, a notch below the BB+ shorterdated lines, so the extra yield needs to be weighed against that lower rating. The 8.25% 2031s (YTW 9.059%) and 7.5% 2035s (YTW 8.974%) offer a middle ground, combining BB+ ratings with discounted prices that lift the yieldtoworst above coupon. HKTGHD's 2030 zerocoupon note shows a 22.8% headline yield at 100.84. That figure is inconsistent with a zerocoupon bond priced above par and should be verified before any relativevalue comparison.
| # | Issuer | ISIN | Coupon | YTW | Price | Maturity | Next Call | Rating | CUR | AMT OUT |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | HKT Capital No.1 Ltd. | …4082 | 0 | 22.814 | 100.84 | 2030-01-15 | BBB | USD | 300MM | |
| 2 | Softbank Group Corp. | …6676 | 6.875 | 9.944 | 97.4632353 | 2167-07-19 | 2027-07-19 | B+ | USD | 1.75BN |
| 3 | Softbank Group Corp. | …AC70 | 9.75 | 9.783 | 99.8113319 | 2034-04-01 | 2034-01-01 | BB+ | USD | 4.5BN |
| 4 | Softbank Group Corp. | …AB97 | 9.25 | 9.26 | 99.9417807 | 2032-04-01 | 2032-01-01 | BB+ | USD | 4.5BN |
| 5 | Softbank Group Corp. | …7427 | 8.25 | 9.225 | 89.7409499 | 2065-10-29 | 2035-07-29 | B+ | USD | 1.1BN |
| 6 | Softbank Group Corp. | …8864 | 8.25 | 9.059 | 96.8156 | 2031-10-22 | 2031-07-24 | BB+ | USD | 600MM |
| 7 | Softbank Group Corp. | …9169 | 8.5 | 9.035 | 96.64125 | 2036-04-22 | 2036-01-23 | BB+ | USD | 500MM |
| 8 | Softbank Group Corp. | …2355 | 7.5 | 8.974 | 91.22 | 2035-07-10 | 2035-04-10 | BB+ | USD | 500MM |
| 9 | Softbank Group Corp. | …2272 | 7.25 | 8.797 | 93.1909708 | 2032-07-10 | 2032-04-11 | BB+ | USD | 600MM |
| 10 | Softbank Group Corp. | …4112 | 6.875 | 8.626 | 93.9437697 | 2031-01-10 | 2030-10-12 | BB+ | USD | 600MM |
Results are limited to USD bonds with an amount outstanding of at least USD 200MM.