The US corporate bond market is “on fire” as firms look to take advantage of fall in yields: says Citi’s global debt capital markets head Richard Zogheb in the Financial Times . Companies have sold some USD 153 bn since the beginning of January ‒ the highest start to a year in the market in over three decades.

Why the hype? Borrowers are looking to take advantage of lower borrowing costs, which have fallen since the Fed’s signaled in November that its campaign of interest rate hikes may be over. Investment-grade bond yields are currently at 5.3%, down from over 6% in mid-November.

Banks and financial firms contributed more than two-thirds of the month’s borrowing: JPMorgan has USD 3.5 bn through bonds since the start of year alongside Wells Fargo that raised USD 8 bn and Morgan Stanley with USD 6.7 bn.

EGX30

27,719

+3.3% (YTD: +11.4%)

USD (CBE)

Buy 30.83

Sell 30.96

USD at CIB

Buy 30.85

Sell 30.95

Interest rates CBE

19.25% deposit

20.25% lending

Tadawul

12,004

+0.4% (YTD: +0.3%)

ADX

9,712

-0.1% (YTD: +1.4%)

DFM

4,082

+0.7% (YTD: +0.5%)

S&P 500

4,840

+1.2% (YTD: +1.5%)

FTSE 100

7,462

0.0% (YTD: -3.5%)

Euro Stoxx 50

4,449

-0.1% (YTD: -1.6%)

Brent crude

USD 78.56

-0.7%

Natural gas (Nymex)

USD 2.52

-6.6%

Gold

USD 2,048.60

+0.4%

BTC

USD 41,764.66

+0.1% (YTD: -1.5%)

THE CLOSING BELL-

The EGX30 rose 3.3% at yesterday’s close on turnover of EGP 6.1 bn (100.1% above the 90-day average). Local investors were net buyers. The index is up 11.4% YTD.

In the green: Talaat Moustafa Group (+12%), Alexandria Containers and Cargo Handling (+10.8%), and Mopco (+10.8%).

In the red: Edita (-2.1%), E-finance (-1.6%), and CIRA Education (-0.7%).

CORPORATE ACTIONS-

Maridive subsidiary sells a marine unit to clear debt:Maridive & Oil Services ’ UAEsubsidiary Ocean Marine has embarked on selling one of its vessels for USD 40 mn to help settle its debts, which currently stand at USD 45.5 mn, Maridive said in an EGX disclosure (pdf).

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