Base rate-CD spd VS property PF risk. So different opinions over CD lvl.
-Given avg spd of base rate-CD is 10-15bps when base rate is left unch, CD has room to move down to 3.6-3.65. On top of that, even if rate hold continues for the time being, rate cut exp also puts downward pressure on CD.
KB issued 1y debenture @ 3.71 for 450b ytd seeing a lot of demand. Given avg spd of CD and debenture is 5-10bps, Def, CD has room to decline.
-PF risk still out there w/ TY being in the process of work out. Authority tries to pave the rite way to kill PF risk in orderly manner via restructuring, but if it doesn't go as planned or expected, it may hv an impact on bond mkt like financial bonds and credit bonds. If that happens, it also impacts CD. " if thins get bad like savings banks not gd and govt's BMSF not working, Authority has no choice but to ask banks for help. As a result, it wld be the matter of what kidna bonds and how mch bonds banks wld underwrite" said one from bank.
-Given avg spd of base rate-CD is 10-15bps when base rate is left unch, CD has room to move down to 3.6-3.65. On top of that, even if rate hold continues for the time being, rate cut exp also puts downward pressure on CD.
KB issued 1y debenture @ 3.71 for 450b ytd seeing a lot of demand. Given avg spd of CD and debenture is 5-10bps, Def, CD has room to decline.
-PF risk still out there w/ TY being in the process of work out. Authority tries to pave the rite way to kill PF risk in orderly manner via restructuring, but if it doesn't go as planned or expected, it may hv an impact on bond mkt like financial bonds and credit bonds. If that happens, it also impacts CD. " if thins get bad like savings banks not gd and govt's BMSF not working, Authority has no choice but to ask banks for help. As a result, it wld be the matter of what kidna bonds and how mch bonds banks wld underwrite" said one from bank.
KDB( major creditor of TY): self-rescue plan proposed by TY not gd enough. We Want More.