20231120-招银国际-Fixed_Income_Daily_Market_Update_5页_717kb

Fixed Income Commentary Summary

Market Overview:

• Chinese benchmark IG papers were under better buying, with higher-yielding LGFV papers in demand; CPDEV575 Perp increased by 0.05 pts by noon.
• Asian IG space sentiment softened; Chinese financials saw HRINTH curve weakened slightly; bank and leasing papers showed profit-taking, with CCB/ICBCAS24-26 widening.
• Key movers included top performers like FOSUNI (up to 1.83 pts) and top underperformers like DALWAN (down to -1.14 pts).

Road KG Acquisition:

• Disposal of four Chinese expressways for RMB 44bn (cUSD 6.098mn) to Road King (China) Infrastructure; net proceeds of RMB 40bn to shareholders; bond coupon reset risk in ROADKG 7 PERP remains buyer-friendly.

Asia and Global Markets:

• Trading comments highlighted firmer LGFV/perp spaces; mixed performance in Hong Kong/Chinese properties, with declines in DALWAN and LNGFOR following Moody’s downgrade.
• Macau Gaming names performed well post-positive ratings; Indian and Indonesian bonds saw price adjustments.

Brokerage News:

• Fed officials mixed views on interest rates; S&P and Fitch commented on name changes affecting creditworthiness.
• Onshore primary issuances saw significant activity, with distressed debt downgrades and court proceedings on restructurings.

Analyst Insights:

• Analyst views recommend buying ROADKG 7 PERP due to financial flexibility gains; pipeline for Asia new issues is sparse.

Author Certification and Disclosure: Covers conflict of interest and liability for the report.