Occasional profit taking
Gregor Daniel from Walter Ludwig Wertpapierhandelsbank sees titles being sold where investors are still making price gains. A PNE bond (DE000A30VJW3), which was only issued this year, runs until 2027 and bears interest at 5 percent. Debt securities of the Württembergische Lebensversicherung (life insurance) running until 2044 (XS1064049767) with a 5.25 percent coupon are on the sales lists in Daniel’s order book. “Even though yields are generally rising, no one is boldly taking action,” notes Daniel. Liquid funds are currently the focus. “Overall, we see that shorter and medium-term maturities are more likely to be bought, while longer ones are sold.”
States continue to market
According to Brunner, it is mainly states that are active as issuers in the course of the further interest rate hikes, after a veritable flood of new corporate bonds came onto the market in the previous week. Spain is financing itself up to 2043, among other things, with a new bond (ES0000012K95), which has a 3.45 percent coupon and Austria until 2026 with a paper (AT0000A308C5) of 2 percent coupon.
Brunner also registers great buying interest – as in the previous week – for a paper from BASF (XS1823502650), which runs until 2025 and bears interest at 0.825 percent. A newly issued security from Fresenius Medical Care with a term until 2027 and a coupon of 3.875 percent (XS2530444624) will be bought.
Real estate stocks, on the other hand, are under pressure: “Here, the interest rate hikes and the prospects of further rising interest rates are having a negative effect,” explains Brunner. A Preos bond (DE000A254NA6) with 7.5 percent interest, which runs until 2024. “At the beginning of the week, the price was 64.75 percent, now it’s 59.60 percent,” reports Brunner. Preos is a typical example of investors’ cautious appetite for risk in the current environment.
by: Antje Erhard, September 23, 2022, © Deutsche Börse AG
