• Higher rated local bonds maintained their resilience and are considered more expensive than their lower rated counterparts. Furthermore, the majority of higher rated bonds are offering a yield that is lower than October and December’s 2019 yields, indicating that the higher yield illustrated during this period is driven by the lower rated bonds.

• Certain securities in industries which are more directly impacted by Covid-19 are more attractively priced when compared to October and December 2019.

• The worst-hit companies are offering higher yields with the financials’ sector maintaining its resilience throughout the pandemic.

• Looking at the different maturity levels, the Property sector is the most attractive sector from a valuation’s perspective in the 1 to 6 year maturity levels. On the other hand, the Hospitality & Leisure sector is the most attractive in the 6 to 9 year maturity bucket. The 9 to 12 year bucket, is similar to October’s and December’s 2019 levels, mainly because this bucket mainly consists of the financials’ sector, which showed their resilience during the pandemic.

• More than half of the corporate names are well positioned from a cash to cost ratio (without taking other considerations such as additional governmental finance or subsidies), and also taking into consideration the positive news flow on vaccine, this could be an opportunistic entry for such names.

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