With a PEACe Bonds Tax, PBCom is Left Holding the Bag

In a previous post entitled: "A Tax on the PEACe Bonds - Who is Left Holding the Bag?", we estimated the impact of a Final Withholding Tax (FWT) on the PEACe Bonds on the Capital Funds of nine banks that banks that were reported to be the final bondholders of the PEACe Bonds.  In that analysis, we used news reports and the individual banks reported holdings of Government Debt Securities to estimate the size of their PEACe Bond holdings as well as the estimated impact on the individual bank's balance sheet.  Based on those estimates, we arrived at this table:

Affected Banks Analysis of Impact of 20% Final Withholding Tax on Affected Bank Capital As of December 31, 2010
Bank	Total Holdings of Government Debt Securities8 (In PHP B)	%	PEACe Bonds Holdings (In PHP B)	FWT Due (In PHP B)	Capital Funds (In PHP B)9	Capital Affected (In %)
Banco De Oro	143.26	29.58%	10.200	1.416	88.302	1.60%
Bank of Commerce	14.17810	2.93%	1.010	0.140	14.56911	0.96%
BPI Family Bank	17.27912	3.57%	1.75013	0.243	12.56414	1.93%
China Banking Corporation	67.007	13.84%	4.77	0.663	32.221	2.06%
Metropolitan Bank and Trust Company	143.690	29.67%	10.232	1.421	95.772	1.48%
Philippine Bank of Communications	13.988	2.89%	0.996	0.138	4.033	3.43%
Philippine National Bank	69.906	14.44%	4.978	0.691	28.527	2.42%
Philippine Veterans Bank	8.58315	1.77%	0.611	0.085	5.39116	1.57%
Planters Development Bank	6.345	1.31%	0.452	0.063	1.276	4.92%
Total	484.234	100.00%	35.000	4.860	282.656	1.72%

Under this scenario, the biggest holders of the PEACe Bonds were, naturally, the bigger banks like Banco de Oro and Metrobank.  The PEACe Bond Tax would take a bite of the banks Capital Funds.  The most affected banks were, from highest to lowest:

1. Planters Development Bank (4.92% of Capital Funds Affected)
2. Philippine Bank of Communications (3.43% of Capital Funds Affected)
3. Philippine National Bank (2.42% of Capital Funds Affected)
4. China Banking Corporation (2.06% of Capital Funds Affected)

Based on new data from unimpeachable sources, we now have a definitive list of the Final PEACe Bondholders.  They are as follows:

Schedule of Final Holders of PEACe Bonds
As of October 12, 2011
(In Pesos)
PIBZ1011J029 (PEACe Bond)
Date of Issue: October 18, 2001
Date of Maturity: October 18, 2011
Principal	35,000,000,000.00
Price	10,168,961,017.95
Discount	24,831,038,982.05
Holders	Face Amount	Withholding Tax	Net of Tax
Asiatrust Development Bank	248,129,807.00	35,207,548.06	212,922,258.94
Banco De Oro Unibank, Inc.	4,860,000,000.00	689,593,425.44	4,170,406,574.56
Bank of Commerce	4,090,000,000.00	580,336,853.92	3,509,663,146.08
BPI Family Bank	2,500,000,000.00	354,729,128.32	2,145,270,871.68
China Bank Corp.	11,472,000,000.00	1,627,781,024.01	9,844,218,975.99
Metropolitan Bank and Trust Co.	3,000,000,000.00	425,674,953.98	2,574,325,046.02
Philippine Bank of Communications	3,000,000,000.00	425,674,953.98	2,574,325,046.02
Philippine Business Bank	259,000,000.00	36,749,937.69	222,250,062.31
Philippine National Bank	1,650,000,000.00	234,121,224.69	1,415,878,775.31
Philippine Veterans Bank	1,110,000,000.00	157,499,732.97	952,500,267.03
Planters Development Bank	800,000,000.00	113,513,321.06	686,486,678.94
Premiere Development Bank	70,000,000.00	9,932,415.59	60,067,584.41
RCBC Savings Bank	0.11	0.02	0.09
Rizal Commercial Banking Corp.	1,387,896,747.37	196,930,961.35	1,190,965,786.02
Union Bank of the Philippines	522,448,193.00	74,131,036.84	448,317,156.16
Beneficial - PNB Life Insurance Co., Inc.	4,444,444.44	630,629.56	3,813,814.88
Philippine First Insurance Co.	4,000,000.00	567,566.61	3,432,433.39
BMS Rural Bank	13,000,000.00	1,844,591.47	11,155,408.53
Yu, Francisco O/ Lester Joebert	1,000,000.00	141,891.65	858,108.35
Pacific Plans	8,080,808.08	1,146,599.20	6,934,208.88
Total	35,000,000,000.00	4,966,207,796.41	30,033,792,203.59

Source: Department of Finance

Based on this definitive list, the banks with the highest holdings of PEACe Bonds turns out to be the smaller and mid-level banks.  Topping the list was China Bank Corp., with a surprising PHP 11.472 billion in PEACe Bonds.  Next on the list is a large bank, Banco de Oro Unibank, Inc., with PHP 4.860 billion in PEACe Bonds.  Bank of Commerce is third on the list, with PHP 4.090 billion in PEACe Bonds.  Tied for fourth place in terms of PEACe Bonds holdings are Metrobank and PBCom, with PHP 3.000 billion each.

Impact on Bank's Financial Statements

As mentioned on this blog before, the surprise imposition of the 20% Final Withholding Tax will affect each of the banks financial condition to varying degrees.  What is clear is that:

1. None of the banks have properly accrued for the presumed tax liability
2. None of the banks have prepared themselves to receive less cash from the redemption payment of the  PEACe Bonds.

The imposition of the tax will definitely take a bite out of the bank earnings and capital funds.  Based on their latest available Published Statements of Condition courtesy of www.bsp.gov.ph, the most affected banks are as follows:

1. Philippine Bank of Communications (10.41% of Stockholders Equity)
2. China Bank Corp. (4.88% of Stockholders Equity)
3. Bank of Commerce (3.37% of Stockholders Equity)
4. Philippine Veterans Bank (2.95% of Stockholders Equity)
5. Asiatrust Development Bank (2.89% of Stockholders Equity)

Affected Banks
Analysis of Impact of 20% Final Withholding Tax
on Affected Bank Capital
As of September 30, 2011
	Final	Stockholders Equity	% Impact on
Bank	Withholding Tax	As of 9/30/2011	Stockholders Equity
Philippine Bank of Communications	425,674,953.98	4,088,965,572.94	10.41%
China Bank Corp.	1,627,781,024.01	33,346,295,133.54	4.88%
Bank of Commerce	580,336,853.92	17,216,195,258.88	3.37%
Philippine Veterans Bank	157,499,732.97	5,338,983,472.43	2.95%
Asiatrust Development Bank*	35,207,548.06	1,217,067,800.00	2.89%
BPI Family Bank	354,729,128.32	13,215,459,607.20	2.68%
Planters Development Bank	113,513,321.06	4,699,048,148.39	2.42%
Premiere Development Bank	9,932,415.59	768,276,843.83	1.29%
Philippine Business Bank	36,749,937.69	3,078,009,090.67	1.19%
Banco De Oro Unibank, Inc.	689,593,425.44	88,975,509,887.06	0.78%
Philippine National Bank	234,121,224.69	31,740,513,590.20	0.74%
Rizal Commercial Banking Corp.	196,930,961.35	40,739,143,784.29	0.48%
Metropolitan Bank and Trust Co.	425,674,953.98	98,546,088,987.74	0.43%
Union Bank of the Philippines	74,131,036.84	33,802,457,673.54	0.22%
RCBC Savings Bank	0.02	7,350,378,695.23	0.00%
Total	4,961,876,517.92	384,122,393,545.94	1.29%
*Latest Financial Statements: June 30, 2009

It must be noted that of the fifteen banks in this list, nine are considered distressed (highlighted in yellow) because their Total Distressed Assets exceed their Total Capital Cushion by a magnitude of more than 1.  Since the level of their distressed assets is so high relative to their capital base, that any significant deterioration in the value of these distressed assets has the potential to take a huge chunk of the bank's capital or even wipe it out completely.

Philippine Thrift Banking System
Total Distressed Assets/Total Capital Cushion
September 30, 2011
		September 30, 2010
Bank	Total Distressed Assets (In PHP Billion)	Total Capital Cushion (In PHP Billion)	Distressed Assets/ Total Capital Cushion (In %)
Planters Development Bank	11,502,781,363.87	4,362,965,164.27	263.65%
Asiatrust Development Bank*	4,638,280,785	1,807,777,528	256.57%
Philippine Veterans Bank	10,879,880,413.60	5,737,758,181.67	189.62%
Bank of Commerce	32,699,114,872.49	18,361,861,626.49	178.08%
RCBC Savings Bank	13,649,319,087.69	7,765,864,931.44	175.76%
Philippine National Bank	64,949,186,122.23	38,021,318,336.45	170.82%
Philippine Bank of Communications	9,291,519,325.92	6,103,760,074.12	152.23%
Premiere Development Bank	1,278,226,045.20	907,972,696.40	140.78%
Union Bank of the Philippines	38,582,465,913.28	38,301,194,129.33	100.73%
Philippine Business Bank	2,097,844,212.18	2,792,487,751.08	75.12%
Rizal Commercial Banking Corp.	27,086,579,563.52	36,598,227,573.49	74.01%
Metropolitan Bank and Trust Co.	63,938,649,304.53	89,510,341,778.10	71.43%
Banco De Oro Unibank, Inc.	67,521,482,859.14	110,621,563,730.79	61.04%
BPI Family Bank	12,378,223,253.81	13,932,797,475.79	58.51%
China Bank Corp.	21,369,318,244.66	36,522,588,097.69	58.51%
Total	381,862,871,367.12	411,348,479,075.11	92.83%
*Latest Available Financial Statement: June 30, 2009

Several of these Distressed Banks have already undergone significant changes in ownership in the last two years.  Asiatrust Development Bank's banking assets were recently sold to Asia United Bank (See a previous blog post: "Asiatrust Bank, Long on PDIC's Life Support, is Finally Sold for Scrap Value").  Bank of Commerce was acquired by the San Miguel Group.  Philippine Bank of Communications was acquired by the Ongpin Group.  Premiere Development Bank was acquired by Security Bank Corp. in June 2011.

Given their precarious state of condition, it is very probable that more asset sales and/or mergers will take place, particularly among the distressed banks.  It is also highly likely that the Ongpin Group will have to infuse more capital into PBCom, particularly if the Supreme Court upholds the Philippine Governments position that a Final Withholding Tax of 20% must be imposed on the PEACe Bonds.

Postscript:

For a more complete list of distressed Philippine Banks, check out the following blog posts: "Export and Industry Bank Becomes Even More Insolvent! - September 30, 2011" for commercial banks and "Thrift Banks Improve Due to Survivorship Bias" for thrift banks.

PEACe Bonds Bid Results, by Institution

This post is a follow up to a previous post "Revisiting the PEACe Bonds.", which is very long.  A shorter version can be found here.

This new post contains new information regarding the bidding results of the PEACe Bonds Auction, the first auction of zero-coupon Treasury Bonds in the Philippines and the most controversial to date.  Specifically, it contains information on the GSEDs that bid for the PEACe Bonds, how much they bid for, and at what YTMs.

Recap of PEACe Bonds Bidding

As a recap, the PEACe Bonds auction had the widest High-Low Bid Differential in history of the Philippine 10-Year Treasury Bond Auctions.  The differential of 5.752% was so wide that was ten times the historic average bid differential in the 10 Year Treasury Bond auctions from 1998 to 2001.

As a result of this differential, there was a huge gap in bond values between the highest and lowest bid:

The top winning bid was 71% higher than the bottom losing bid:

If the PEACe Bond auction bid differential had followed the historic average of only 0.422%, the top winning bid would only be 4.05% higher than the bottom losing bid:

At that rate, the gap between the top winning bid and the bottom losing bid will be imperceptible.

What the Wide High-Low Bid Differential Indicates 

The wide High-Low Bid Differentials in YTMs and the corresponding large gap in bond values assigned by the bidding GSEDs is indicative of the following:

1. The GSEDs simply didn't know how to price the PEACe Bonds.
2. The GSEDs colluded to give the entire issue to RCBC.

How did Individual GSEDs Bid for the PEACe Bonds?

Ten years ago, very little information was released on how the individual institutions bid for the PEACe Bonds.  In fact, this was all we had.

Based on recent data provided by government sources, that information is now available. The updated information can be seen below:

PEACe Bond Auction
Bidding Results
On October 16, 2001
Bid #	Institution #	Time	YTM (In %)	Maturity Value	Institution - Client
1	1	09:28:00 AM	14.000%	4,000,000,000.00	International Exchange Bank
2	1	09:28:00 AM	13.500%	3,000,000,000.00	International Exchange Bank
3	1	09:48:00 AM	18.000%	2,000,000,000.00	International Exchange Bank
4	1	09:48:00 AM	17.500%	1,500,000,000.00	International Exchange Bank
5	1	09:48:00 AM	17.000%	1,500,000,000.00	International Exchange Bank
6	1	09:48:00 AM	16.500%	1,000,000,000.00	International Exchange Bank
7	2	11:09:00 AM	13.000%	2,000,000,000.00	Rizal Commercial Banking Corporation
8	2	11:09:00 AM	13.118%	1,000,000,000.00	Rizal Commercial Banking Corporation
9	2	11:09:00 AM	12.368%	10,000,000,000.00	Rizal Commercial Banking Corporation
10	2	11:09:00 AM	12.488%	10,000,000,000.00	Rizal Commercial Banking Corporation
11	2	11:09:00 AM	12.785%	5,000,000,000.00	Rizal Commercial Banking Corporation
12	2	11:09:00 AM	12.248%	10,000,000,000.00	Rizal Commercial Banking Corporation
13	3	11:28:00 AM	16.375%	500,000,000.00	Banco de Oro
14	3	11:28:00 AM	16.250%	500,000,000.00	Banco de Oro - Trust
15	4	11:34:00 AM	16.750%	500,000,000.00	United Coconut Planters Bank
16	4	11:34:00 AM	17.000%	500,000,000.00	United Coconut Planters Bank
17	5	11:41:00 AM	16.500%	1,000,000,000.00	Deutsche Bank
18	5	11:41:00 AM	16.250%	1,000,000,000.00	Deutsche Bank
19	5	11:41:00 AM	15.750%	500,000,000.00	Deutsche Bank
20	5	11:41:00 AM	15.000%	500,000,000.00	Deutsche Bank
21	6	11:41:00 AM	16.000%	500,000,000.00	Citibank N.A. - Philam Life
22	6	11:41:00 AM	15.250%	500,000,000.00	Citibank N.A. - Sunlife of Canada
23	6	11:41:00 AM	15.500%	500,000,000.00	Citibank N.A. - Sunlife of Canada
24	7	11:42:00 AM	16.500%	500,000,000.00	Chinatrust
25	8	11:51:00 AM	17.500%	500,000,000.00	China Banking Corp.
26	8	11:51:00 AM	13.875%	3,750,000,000.00	China Banking Corp.
27	8	11:51:00 AM	14.250%	3,750,000,000.00	China Banking Corp.
28	8	11:51:00 AM	13.800%	500,000,000.00	China Banking Corp. - Export and Industry Bank
29	9	11:55:00 AM	13.000%	500,000,000.00	Global Bank - FMIC
30	9	11:55:00 AM	15.000%	6,100,000,000.00	Global Bank
31	9	11:55:00 AM	14.000%	1,480,000,000.00	Global Bank
32	10	11:55:00 AM	14.500%	10,000,000,000.00	Metropolitan Bank & Trust Co.
33	10	11:55:00 AM	14.000%	10,000,000,000.00	Metropolitan Bank & Trust Co.
34	10	11:55:00 AM	13.750%	8,000,000,000.00	Metropolitan Bank & Trust Co.
35	10	11:55:00 AM	13.500%	5,000,000,000.00	Metropolitan Bank & Trust Co.
36	10	11:55:00 AM	13.250%	5,000,000,000.00	Metropolitan Bank & Trust Co.
37	10	11:55:00 AM	13.000%	8,000,000,000.00	Metropolitan Bank & Trust Co.
38	11	11:57:00 AM	15.850%	900,000,000.00	ING Bank
39	12	11:57:00 AM	16.500%	5,000,000,000.00	Development Bank of the Philippines
40	13	11:59:00 AM	16.500%	3,100,000,000.00	Equitable-PCIBank
41	14	12:00:00 PM	17.125%	3,000,000,000.00	Security Bank Corp.
42	14	12:00:00 PM	16.875%	3,000,000,000.00	Security Bank Corp.
43	15	12:00:00 PM	15.125%	500,000,000.00	HSBC - Sunlife of Canada
44	15	12:00:00 PM	15.375%	500,000,000.00	HSBC - Sunlife of Canada
45	15	12:00:00 PM	15.000%	500,000,000.00	HSBC - Manulife
				137,080,000,000.00

Source: Bureau of Treasury

When the bids are sorted by GSED and by bid and YTMs, you get this table (RCBC's winning bids are highlighted in yellow):

PEACe Bond Bid Results
By Institution, by Bid YTMs
October 16, 2001
Firm	Bid 1	Bid 2	Bid 3	Bid 4	Bid 5	Bid 6
IEB	14.000%	13.500%	18.000%	17.500%	17.000%	16.500%
RCBC	13.000%	13.118%	12.368%	12.488%	12.785%	12.248%
BDO	16.375%	16.250%
UCPB	16.750%	17.000%
Deutsche	16.500%	16.250%	15.750%	15.000%
Citibank	16.000%	15.250%	15.500%
Chinatrust	16.500%
China Bank	17.500%	13.875%	14.250%	13.800%
Global	13.000%	15.000%	14.000%
Metrobank	14.500%	14.000%	13.750%	13.500%	13.250%	13.000%
ING	15.850%
DBP	16.500%
Equitable	16.500%
Security	17.125%	16.875%
HSBC	15.125%	15.375%	15.000%

When the bids are sorted out by GSED, by bid, and by Maturity Value, you get this table (RCBC's winning bids are highlighted in yellow).

PEACe Bond Bids
By Institution, by Bid Maturity Value
(In PHP)
Oct 16, 2001
Firm	Bid 1	Bid 2	Bid 3	Bid 4	Bid 5	Bid 6	Total
IEB	4,000,000,000	3,000,000,000	2,000,000,000	1,500,000,000	1,500,000,000	1,000,000,000	13,000,000,000
RCBC	2,000,000,000	1,000,000,000	10,000,000,000	10,000,000,000	5,000,000,000	10,000,000,000	38,000,000,000
BDO	500,000,000	500,000,000					1,000,000,000
UCPB	500,000,000	500,000,000					1,000,000,000
Deutsche	1,000,000,000	1,000,000,000	500,000,000	500,000,000			3,000,000,000
Citibank	500,000,000	500,000,000	500,000,000				1,500,000,000
Chinatrust	500,000,000						500,000,000
China Bank	500,000,000	3,750,000,000	3,750,000,000	500,000,000			8,500,000,000
Global	500,000,000	6,100,000,000	1,480,000,000				8,080,000,000
Metrobank	10,000,000,000	10,000,000,000	8,000,000,000	5,000,000,000	5,000,000,000	8,000,000,000	46,000,000,000
ING	900,000,000						900,000,000
DBP	5,000,000,000						5,000,000,000
Equitable	3,100,000,000						3,100,000,000
Security	3,000,000,000	3,000,000,000					6,000,000,000
HSBC	500,000,000	500,000,000	500,000,000				1,500,000,000
Total	32,500,000,000	29,850,000,000	26,730,000,000	17,500,000,000	11,500,000,000	19,000,000,000	137,080,000,000

What we know now:

What was well known ten years ago was that RCBC won the entire issue.  They had the lowest bids in terms of YTMs.  But what was not well known, until recently, was that both Global Bank and Metrobank came very close to the winning YTM bids.  If both Global Bank and Metrobank had lowered their lowest bid YTMs by 25 basis points or 0.250% or more, they would have at least tied with RCBC's fourth winning bid and possibly have won a portion of the auction.

However, only Metrobank was RCBC's only true competitor.  Only Metrobank, aside from RCBC, bid for enough PEACe Bonds to win the entire issue of PHP 35 billion.

If we compute the bond values assigned to each bid of the participating GSEDs to a PHP 1 M Face Amount of PEACe Bonds, we get this table:

PEACe Bond Bids
PV of PHP 1M Face Amount
In PHP
Oct 16, 2001
	Present Value of PHP 1 M Face Amount PEACe Bond
Firm	Bid 1	Bid 2	Bid 3	Bid 4	Bid 5	Bid 6
IEB	258,419	270,796	178,431	186,816	195,616	204,853
RCBC	283,797	280,671	301,175	297,791	289,587	304,599
BDO	207,233	209,642
UCPB	200,179	195,616
Deutsche	204,853	209,642	219,575	235,413
Citibank	214,548	230,005	224,727
Chinatrust	204,853
China Bank	186,816	261,457	252,455	263,297
Global	283,797	235,413	258,419
Metrobank	246,635	258,419	264,532	270,796	277,217	283,797
ING	217,550
DBP	204,853
Equitable	204,853
Security	193,376	197,884
HSBC	232,692	227,350	235,413

Wide Dispersion of Bond Values, even within the individual GSED bids

What is also well known was that the different GSEDs assigned widely divergent values to the PEACe Bonds.  RCBC, of course, being the winning bidder, assigned the highest bond values to the PEACe Bonds.   And again, both Global Bank and Metrobank assigned the second highest bond values to the bonds.  International Exchange Bank assigned the lowest bond value to the PEACe Bonds.  Most of the other GSEDs' bids came at PHP 210,000 per PHP 1 M Face Amount PEACe Bond, around PHP 70,000 less than PHP 290,000 per PHP 1 M Face Amount PEACE Bond - the winning cut-off mark.

As can be seen from the above column chart, the values assigned by GSED to the PEACe Bonds were widely divergent, even within the GSED.  A tabulation of these bid differentials within the participating GSEDs is as follows:

PEACe Bond Bids
PV of PHP 1M Face Amount
In PHP
Oct 16, 2001
	Present Value of PHP 1 M Face Amount PEACe Bond
Firm	Average	Min	Max	Bid Differential	% Bid Differential
IEB	215,822	178,431	270,796	92,365	51.77%
RCBC	292,937	280,671	304,599	23,928	8.53%
BDO	208,438	207,233	209,642	2,409	1.16%
UCPB	197,898	195,616	200,179	4,563	2.33%
Deutsche	217,371	204,853	235,413	30,560	14.92%
Citibank	223,093	214,548	230,005	15,457	7.20%
Chinatrust	204,853	204,853	204,853	0	0.00%
China Bank	241,006	186,816	263,297	76,481	40.94%
Global	259,210	235,413	283,797	48,384	20.55%
Metrobank	266,899	246,635	283,797	37,162	15.07%
ING	217,550	217,550	217,550	0	0.00%
DBP	204,853	204,853	204,853	0	0.00%
Equitable	204,853	204,853	204,853	0	0.00%
Security	195,630	193,376	197,884	4,508	2.33%
HSBC	231,818	227,350	235,413	8,063	3.55%
Total	225,482	213,537	236,462	22,925	10.74%

For instance, International Exchange Bank submitted the lowest bid value, at PHP 178,431 per PHP 1 M Face Amount.  But its highest bid was fairly close to the cut-off of PHP 290,000 per PHP 1 M Face Amount.  As a result, the difference between its highest and lowest bid amounted to PHP 92,365.  In other words, its highest bid was 51.77% higher than its lowest bid, a very wide range by any standard.

Next in line is China Bank.  Its lowest bid was PHP 186,816 per PHP 1 M Face Amount but its highest bid was PHP 263,297 per PHP 1 M Face Amount for a bid differential of PHP 76,481 per PHP 1 M Face Amount.  This amounts to 40.94% of the lowest bid.

Even Global Bank had high bid differentials.  Its highest bid was PHP 283,797 or 20.55% higher than its lowest bid of PHP 235,413.

Metrobank came in fourth,with its highest bid 15.07% higher than its lowest bid.  Still, this amounted to as much as PHP 37,162 per PHP 1 M Face Amount.

Of the firms that submitted four or more bids for the PEACe Bonds, RCBC had the narrowest range, with the highest bid only 8.53% higher than its lowest bid.

The wide dispersion of bond values assigned by a GSED to a PEACE Bond  is reflected in dispersion of the YTMs of the bids.  For instance, the bid differential of International Exchange Bank's bids is 4.500% or more than ten times the historic bid differential of 0.422% (high-low bid differential of 10 Year Philippine Treasury Bond Auctions from 1998 to 2001).

PEACe Bond Bids
By Institution, by Bid YTM
October 16, 2001
						Bid Differential/
Firm	Average YTM	Min YTM	Max YTM	Bid Differential	Historic Bid Differential	Historic Bid Differential
IEB	16.083%	13.500%	18.000%	4.500%	0.422%	10.66
RCBC	12.668%	12.248%	13.118%	0.870%	0.422%	2.06
BDO	16.313%	16.250%	16.250%	0.000%	0.422%	0.00
UCPB	16.875%	17.000%	17.000%	0.000%	0.422%	0.00
Deutsche	15.875%	15.000%	16.250%	1.250%	0.422%	2.96
Citibank	15.583%	15.250%	15.500%	0.250%	0.422%	0.59
Chinatrust	16.500%	0.000%	0.000%	0.000%	0.422%	0.00
China Bank	14.856%	13.800%	14.250%	0.450%	0.422%	1.07
Global	14.000%	14.000%	15.000%	1.000%	0.422%	2.37
Metrobank	13.667%	13.000%	14.000%	1.000%	0.422%	2.37
ING	15.850%	0.000%	0.000%	0.000%	0.422%	0.00
DBP	16.500%	0.000%	0.000%	0.000%	0.422%	0.00
Equitable	16.500%	0.000%	0.000%	0.000%	0.422%	0.00
Security	17.000%	16.875%	16.875%	0.000%	0.422%	0.00
HSBC	15.167%	15.000%	15.375%	0.375%	0.422%	0.89

Conclusion:

The wide dispersion of bid YTMs and the resulting wide dispersion in bond values assigned by a participating GSED to the PEACe Bonds is indicative of a "shotgun" approach to bidding.  This indicates that some individual GSEDs, namely International Exchange Bank, China Bank, and Global Bank, didn't know precisely how to value the PEACe Bonds and as a result, cast a very wide net hoping to snare some PEACe Bonds.