Focus of the corporate coverage is on Automotive, Telecommunication, Utilities, Transportation and Consumer Finance.
22.08.2009: Corporate bond spreads are now on a low level, but in the last week the spreads increased slightly. In general for 'green' rated bonds it is possible to have spread of around 30 basis points above the JGB curve. Spreads of around 90 to 130 basis points indicate that there might be some potential risk. In this case a critical credit analyisis is necessary. Spreads above 130 basis points indicate a high risk and could be flagged as 'red'. Mostly reits and consumer finance companies fall into this category, but others might be possible.
05.09.2009: Main development in the securities market is the split of of Daiwa Securities from SMBC (one of the big three commercial banks). The original plan was that Daiwa Securities would eventually merge into SMBC, but it seems that Daiwa Securities was resisting this idea and wants to make a business on its own based on securities underwriting and trading. Taking into account that the former days of fixed security commission schemes in Japan are not existing anymore and that Daiwa Securities does not have an international network or franchise the chances for a 'stand-alone' success of Daiwa Securities are very limited. Corporates bonds spread for Daiwa Securities widened therefore.