Webinar: NBFCs – Benefiting from the tectonic shift away from PSU Banks?, Fri, Jul 10, 2015 1:30 PM IST

Non-Banking Financial Companies (NBFCs) have increased their share in domestic credit between FY10 and FY15 at the expense of government banks, while their stocks have outperformed that of the private banks. Evidence suggests that this increase in share may continue, given that the sector continues to attract capital and funding. The inclusion in the Sarfaesi Act and the setting up of the Mudra Bank are other structural benefits for NBFCs.

In this webinar, India Ratings will discuss the following:

  • Where has NBFCs’ growth come from? Is it sustainable? What does Basel III norms for banks imply for NBFCs?
  • Where are the risks building up? Are NBFCs insulated from the taper?
  • NBFCs or banks? How is the debate progressing?
  • What rating actions did India Ratings take on NBFCs in FY15? What is the rating outlook?
Register now

About India Ratings
India Ratings and Research (Ind-Ra) is India’s Most Respected credit rating agency committed to providing the India’s credit markets with accurate, timely and prospective credit opinions. Built on a foundation of independent thinking, rigorous analytics, and an open & balanced approach towards credit research, Ind-Ra has grown rapidly during the past decade gaining significant market presence in India’s fixed income market.

Ind-Ra currently maintains coverage of corporate issuers, financial institutions, which includes banks and insurance companies. Finance & leasing companies and managed funds, Urban Local Bodies and Project Finance.

With six offices in India located at Mumbai, Delhi, Chennai, Bangalore, Hyderabad and Kolkata, Ind-Ra is part of Fitch Group, a global leader in financial information services. Ind-Ra is recognised by the Securities and Exchange Board of India, the Reserve Bank of India and National Housing Bank.

About Fitch Group
Fitch Group is a global leader in financial information services with operations in more than 30 countries. Fitch Group is comprised of: Fitch Ratings, a global leader in credit ratings and research; Fitch Solutions, a leading provider of credit market data, analytical tools and risk services; BMI Research, an independent provider of country risk and industry analysis specializing in emerging and frontier markets; and Fitch Learning, a preeminent training and professional development firm. With dual headquarters in London and New York, Fitch Group is majority owned by Hearst Corporation.

IOSCO : Sound Practices at large intermediaries: Alternatives to the use of credit ratings to assess creditworthiness

The International Organisation of Securities Commissions (IOSCO) has proposed 13 sound practices for large market intermediary firms to consider in the implementation of their internal credit assessment policies and procedures.

In a notice obtained from IOSCO’s website, the global regulator said it believes that identifying sound practices regarding the suitable alternatives to credit ratings for assessing credit risk should reduce the potential overreliance of large intermediaries on credit rating agencies (CRAs).

The report entitled: ‘Sound Practices at Large Intermediaries: Alternatives to the Use of Credit Ratings to Assess Creditworthiness’, said the reduction would help increase investor protection, while contributing to market integrity and financial stability.



Speech by Hans Hoogervorst: ‘Mind the Gap (Between non-GAAP and GAAP)’

Hans Hoogervorst, Chairman of the International Accounting Standards Board (IASB), has today delivered a speech in Seoul, Korea, highlighting the potential challenges linked to companies’ reporting of alternative performance measures, also known as non-GAAP (generally accepted accounting principles) measures. He said there are no problems with companies providing additional information to investors, but highlighted the need for some ground rules to be established to prevent the presentation of misleading information.

Read the full full press release and speech.

Asia-Pacific Banking Webcast Series: China, July 2, 3pm HKT

Please join us for a webcast July 2 2015 on the Chinese banking sector.

As part of our series of Asia-Pacific banking webcasts, we will be discussing the emerging credit issues for major banking systems in Asia-Pacific.

This webcast is provided on a complimentary basis. Register now.


  • Qiang Liao, Senior Director, Financial Institutions Ratings
  • Gavin Gunning, Senioe Director, Financial Institutions Ratings (Moderator)

Please vote for Standard & Poor’s in the AsiaMoney FX and Fixed Income Poll 2015.



Foreign Investor Access to Onshore Chinese Bond Markets Grows

China continues to broaden foreign investor access to their onshore bond market. Luxembourg is the latest country being granted an RQFII quota by the People’s Bank of China, followed Canada, Germany, Qatar and Australia.  According to the data published by State Administration of Foreign Exchange (SAFE) on April 29, 2015, the approved RQFII investment quota reached CNY 363 billion, representing a 22% increase from December, 2014. The number of the qualified institutions also rose from 93 to 121.

Among the qualified participants, Hong Kong remains to be the biggest player, with an RQFII quota allocation of around 74%, see exhibit 1 for the country breakdown. Outside of Hong Kong, the most significant development observed was by South Korea, with its approved quota jumping 10 times to CNY 30 billion, while the number of the qualified institutions climbed from 1 to 14 since last December.

– See more at: http://www.indexologyblog.com/2015/05/12/foreign-investor-access-to-onshore-chinese-bond-markets-grows/

Ind-Ra Market Wire: RBI’s New 30-year Bond Issuance to Offer a Benchmark to Corporates for Long-Term Funding

Ind-Ra Market Wire: RBI’s New 30-year Bond Issuance to Offer a Benchmark to Corporates for Long-Term Funding

Ind-Ra-Mumbai-18 June 2015: The new 30-year government security (G-sec) bond issuance by Reserve Bank of India (RBI) on 19 June 2015 will fix structural issues for Indian issuers which are in need of long-term funding especially infrastructure projects, says India Ratings and Research (Ind-Ra).

As has been the global experience, a long-tenor government security facilitates setting a benchmark for other issuers such as banks, financial institutions and corporates to access long-term funding through capital markets. Lack of a benchmark has often been sighted as a shortcoming, which prevents Indian institutions from raising much required long-term funding from capital markets.

To read the complete press release, CLICK HERE

BIS, ECB and IMF publish the Handbook on Securities Statistics

  • The joint handbook assists the production of internationally comparable securities statistics.
  • It covers the conceptual framework for statistics on debt and equity securities.
  • Set of detailed presentation tables using the concepts and guidelines.

The Bank for International Settlements (BIS), the European Central Bank (ECB) and the International Monetary Fund (IMF) today jointly released the Handbook on Securities Statistics.

The importance of securities markets in intermediating financial flows, both domestically and internationally, underscores the need for relevant, coherent and internationally comparable statistics. This need was recognised by the G20 Data Gaps Initiative, launched in the aftermath of the 2007-08 global financial crisis with the support of the G20 finance ministers and central bank governors and the IMF’s International Monetary and Financial Committee.

Download handbook

Citigroup Inc. versus HSBC Holdings PLC: A Bond Market Comparison

Our analysis May 4 reported on the bond market view of HSBC Holdings PLC (HSBC). Citigroup Inc. plays a similar role in the financial services business across the Atlantic.  From a bond market perspective, how does Citigroup Inc. compare to HSBC Holdings PLC? We answer that question in this note in light of our analysis of Citigroup Inc. on October 1, 2014. 

 The first thing to note is that Citigroup Inc., not surprisingly, is much more heavily traded in the U.S. fixed rate corporate bond market, as shown in the trading of fixed-rate senior non-call debt on May 4, 2015. 

Eleven bonds of HSBC Holdings PLC and 34 bonds of HSBC USA Inc. traded, and 56 bonds of Citigroup Inc. traded. The underlying principal amount traded on the Citigroup Inc. bonds was $157 million, compared to $107 million for six HSBC Holdings PLC-related issuers.
Click Here To Read More


BIS offers insight on OTC derivatives market , Contraction for 2H14

The Bank for International Settlements (BIS) today released OTC derivatives statistics at end-December 2014.

  • OTC derivatives markets contracted in the second half of 2014. The notional amount of outstanding contracts fell by 9% between end-June 2014 and end-December 2014, from $692 trillion to $630 trillion. Exchange rate movements exaggerated the contraction of positions denominated in currencies other than the US dollar. Yet, even after adjusting for exchange rate movements, notional amounts were still down by about 3%.
  • The gross market value of outstanding derivatives contracts – which provide a more meaningful measure of amounts at risk than notional amounts – rose sharply in the second half of 2014. Market values increased from $17 trillion to $21 trillion between end-June 2014 and end-December 2014, to their highest level since 2012. The increase was likely driven by pronounced moves in long-term interest rates and exchange rates during the period.
  • Central clearing, a key element in global regulators’ agenda for reforming OTC derivatives markets to reduce systemic risks, made further inroads. In credit default swap markets, the share of outstanding contracts cleared through central counterparties rose from 27% to 29% in the second half of 2014. In interest rate derivatives markets too, central clearing is becoming increasingly important.

Developments in the latest OTC derivatives statistics, including tables with the latest data, are summarised in the statistical release. Additional details and historical data are available on the BIS website. OTC derivatives statistics at end-June 2015 will be released on or before 15 November 2015.

Queries regarding the OTC derivatives statistics may be directed to statistics$bis.org (where “$” denotes “@”).

What are the Missing Pieces in Chinese Fixed Income?

As of April 30, 2015, the fixed income ETF market in China totaled CNY 8 billion; it is only 0.03% of the total market value tracked by the S&P China Bond Index.  The fixed income ETF market in China is small when comparing with that of the U.S., which totaled USD 321 billion as of the same date.

Unsurprisingly, most Chinese investors favor high-risk and high-return products.  They tend not to find the fixed income assets appealing, especially after the recent China stock rally.  However, Chinese investors often overlook the risk component.  As of April 30, 2015, the three-year annualized risk of China’s equity market1 is 19.5% versus 2.77% of Chinese fixed income, represented by the S&P China Bond Index.

– See more at: http://www.indexologyblog.com/2015/05/14/what-are-the-missing-pieces-in-chinese-fixed-income-2/

CalPERS gives its managers ESG ultimatum

In what promises to be a transformational moment for ESG integration and investment manager accountability, CalPERS will require all of its managers to identify and articulate ESG in their investment processes.

CalPERS staff led by Anne Simpson, senior portfolio manager and director of global governance, presented the ESG manager expectations, and draft sustainable investment guidelines, to the investment committee this week.


Read more http://www.top1000funds.com/news/2015/05/22/calpers-gives-its-managers-esg-ultimatum/

Did you know : CCRA curriculum covers ESG principles from Equator Principle Association : http://www.equator-principles.com/


Property Series Part 4: China’s Commercial Property Market

[This is Part 4 in a series about China’s property market. See here for part 1, part 2, and part 3.]

When thinking about China’s property market, the image that often springs to mind is that of the endless seas of residential towers one sees when flying into Beijing or Shanghai. And indeed, the demand for investment in residential housing has been a tremendous catalyst for growth in China and around the world. But there is another part of the property story about which less is known. The nonresidential real estate market consists of mainly office buildings and retail property like shopping centers and hotels.  Nonresidential makes up approximately 30 percent of China’s real estate market in terms of investment, and total sales of the nonresidential market account for about 20 percent of the total (see chart 1).


Read more

Property Series Part 3: Property as an investment class in China

[This is Part 3 in a series about China’s property market. See here for part 1 and part 2.]

Several years ago there was an ill-fated theme in the investment community of a ‘great rotation’ of investor capital out of government bonds and into equities. There is discussion once more about a great rotation, but now it is in China. One part of that rotation is the shifting of investors’ desire from owning property to owning financial assets, such as equities and bonds. In this post, we will review the Chinese household’s balance sheet, and look at how the various investment options available have performed.


Read more

Property Series Part 2: China’s Property Correction in Historical Perspective

This is part 2 in a series about China’s property market. See here for part 1.

The property market in China is clearly in a correction. As we showed in a previous post, price growth is deep in negative territory and all signs are pointing to further weakness ahead. This begs the question of whether or not the long-called-for-but-always-avoided hard landing in China could be on the cards. After all, was it not the combination of an overheated housing market and credit build-up that so recently brought low the United States and many other economies? In this post, we try to place China’s recent build-up in a historical context, looking at previous housing “bubbles” and their aftermath.


Read more

Webinar : FX treasury dealing best practice in Asia Moving away from manual execution to automated: The pros and cons, Friday, 19 June 2015 2:00pm HKT

FX treasury dealing best practice in Asia
Moving away from manual execution to automated: The pros and cons


Invitation to attend complimentary audio webinar

Friday, 19 June 2015
2:00pm HKT Hong Kong/Singapore time


CFOs and treasurers with foreign exchange exposure throughout Asia are confronted with the difficulty of obtaining the best trading prices and smooth execution that saves on the bottom line and improves operational efficiency.

Moving onto an electronic trading platform can deliver many advantages, including greater price discovery. Join The Corporate Treasurer and invited speakers on June 19 as they explore the pros and cons of an automated workflow.

Topics of discussion include:
Obtaining multi-bank FX quotes execution – cost savings

Difficulties in operating in non-deliverable currencies

Post-trade execution – operational benefits

Creating central visibility and control over global FX risk

Managing more complex confirmation and settlement processes


About Bloomberg
Bloomberg, a leader in global business and financial information and news, gives influential decision makers a critical edge by connecting them to a dynamic network of information, people and ideas. The company’s strength – delivering data, news and analytics through innovative technology, quickly and accurately – is at the core of the Bloomberg Professional service, which provides real time financial information to more than 325,000 subscribers globally.www.bloomberg.com



Jarno Timmerman

Jarno Timmerman
Head of Treasury (SEAP), Akzo Nobel Paints (Asia Pacific) Pte. Ltd

George Holdefehr

George Holdefehr
APAC FX and Commodity e-Trading Business Manager, Bloomberg

 David<br />

David Blair
Managing Director,Acarate Consulting


Daniel Flatt

Daniel Flatt
Editor, TheCorporateTreasurer


Webcast : Adani Ports And Special Economic Zone Ltd. Assigned ‘BBB-‘ Rating With Stable Outlook; Proposed Notes Rated ‘BBB-‘ , 12th June 1pm IST

Standard & Poor's Ratings Services | You Are Invited

Adani Ports And Special Economic Zone Ltd. Assigned ‘BBB-‘ Rating With Stable Outlook; Proposed Notes Rated ‘BBB-‘

Live Webcast And Q&A


Date & Time:

12 June 2015

Hong Kong/China
3.30 p.m.

2.30 p.m.

Japan/South Korea
4.30 p.m.

1.00 p.m.

Please join us for a webcast TODAY on the new rating on Adani Ports and Special Economic Zone (APSEZ), the first port operator rated in India.

Register now. This webcast is provided on a complimentary basis.
You will receive a link to access the replay as long as you register, regardless if you attend the webcast on the actual day.

We will discuss our assessment of the industry, competitive position, growth strategy, and our expectations of financial projections for APSEZ. We will also discuss the relationship with the broader Adani Group and compare it with other ports in the region.


  • Mehul Sukkawala, Senior Director, Corporate Ratings
  • Abhishek Dangra, Director, Corporate Ratings

You will need computer speakers or headphones to listen to the webcast. You may submit your questions for the speakers in real time via the web interface. Please test your system here at least 15min before the scheduled start time.

If you are not able to view a short flash video play with audio on both Internet Explorer and Firefox, you can still join the webcast via dial-in numbers provided in the confirmation email you will receive once you have registered online . Participants who listen by phone only will NOT be able to submit a question over the phone. Please email us your questions instead.

Property Series Part 1: Trends in China’s Property Market

This is part 1 in a series about China’s property market.

In this post we try to give a broad update of China’s property market the past several years.  We take a look at housing prices versus quantity of floor space then we’ll wrap up with an overview of the housing policies Beijing implements in order to tame, and stimulate, the property market.  One consistent observation is that the property market is in the midst of a correction, of which we have yet to see the bottom.

Read more

S&P US Speculative Grade Bonds – Update


  U.S. Speculative-Grade Bond Returns Improve Markedly In April

U.S. speculative-grade bond returns increased significantly in April while investment-grade bond performance remained stuck in neutral. In this CreditMatters TV segment, Standard & Poor’s Director Nick Kraemer summarizes the experiences of various corporate bond breakouts during the month.

  The Global Weakest Links Count Drops In April

The number of global weakest links decreased by three issuers to 154 (as of Apr. 27, 2015) from 157, with 15 additions and 18 removals. In this CreditMatters TV segment, Standard & Poor’s Associate Director Gregg Moskowitz explains the key trends and data points.

  The U.S. Distress Ratio Holds Steady In April

The U.S. distress ratio remained at 11.5% in April, compared to March. In this CreditMatters TV segment, Standard & Poor’s Associate Director Gregg Moskowitz explains the key trends and data points.


S&P Asia-Pacific Banking Webcast Series: Korea, 12 June 12pm IST

Asia-Pacific Banking Webcast Series:


Date & Time:

12 June 2015

Hong Kong/China
2.30 p.m.
India : 12.00 p.m.

Please join us for a webcast this Friday, 12 June 2015 on the Korean banking sector.

This is the first of a series of webcasts on the Banking Industry and Country Risk Assessments (BICRA) for Asia-Pacific Banks, where we will discuss the emerging credit issues for major banking systems in Asia-Pacific.

This webcast is provided on a complimentary basis. Register now.


  • Hong Taik Chung, Director, Financial Institutions Ratings
  • Sharad Jain, Director, Financial Institutions Ratings (Moderator)

S&P Fixed Income Index Dashboard – May 2015

 Fixed Income Index Dashboard
  Download this month’s dashboard
The S&P U.S. Aggregate Bond Index had a dismal month, falling 0.23% as investors continue to delay their flight to safety. Aside from U.S. covered bonds, each driver of the S&P U.S. Aggregate (investment grade corporates, mortgage-backed securities, treasuries, taxable munis, and U.S. agencies) was negative in May.
The S&P U.S. High Yield Corporate Bond Index rose 0.51% in May, versus the S&P U.S. Investment Grade Corporate Bond Index, which finished the month down 0.47%. Quality-rated U.S. corporates continue to underperform their “junk” counterparts, as market participants continue scavenging for yield.
The S&P/LSTA Leveraged Loan 100 Index has returned 2.64% YTD. Regulatory pressures have deterred bank loan issuance, driving the yields down relative to the heavily issued high yield corporate bonds (4.81% vs. 6.11% YTW).