20230719-招银国际-Fixed_Income_Daily_Market_Update_5页_863kb

Fixed Income Credit Commentary Summary for July 19, 2023

Market Overview

The report analyzes the fixed income market, focusing on Asian government and high-yield bonds. Overall sentiment is weak, with Asian IG bonds experiencing widening yields and reduced selling flows. Key sectors like TMT and property are pressured, while Chinese SOEs and Korean bonds show some stability amid profit-taking and curve adjustments.

Asian IG Performance

• Asian IG space is weak, with recent new issues leading to 2-5bps widening. TMT benchmarks widened 1-2bps, and high-beta names like XIAOMI/LENOVO saw 5bps wider spreads. LGFVs had mixed flows, with better selling in weaker names.
• SHUION bonds slumped 10-125pts due to concerns over maturity extensions and real estate uncertainties. The company is seeking holder identification to improve communication.
• DALWAN/SHUION volatility impacts property-related names, with CPDEV/ZHHFGR also affected by weak sentiment in the sector.
• Top movers include SHUION as top underperformer and FTLNHD as top performer.

Trading Desk Insights

• Chinese SOEs like CHGRID saw better bids, while TMT and financials faced selling. Chinese banks and AT1 securities showed buying interest amid yielding opportunities.
• Korean and Japanese credits were subdued, with profit-taking in corporates like NACF/KOEWPW.

Macro News Highlights

• U.S. markets closed strongly, with S&P, Dow, and Nasdaq at YTD highs, but softer economic data (e.g., U.S. retail sales and industrial production) suggests caution.
• U.S. Treasury yields slightly dropped, remaining stable at levels like 4.74% for 2-year notes.

Company Analysis

• SHUION: Focus on U.S. dollar bonds widening, amid real estate challenges. Occupancy rates and rental income declines in key properties like Shanghai Xintiandi highlight risks, and new CMBS issuance shows ongoing exposure.

New Issues and Events

• Offshore Asia sees new issues like Korea Development Bank's bond at 5.992%. Pipeline includes Mirae Asset Securities and Resorts World Las Vegas.
• Notable events: DALWAN's stake sale, SINOCE's bond redemption uncertainty, and VNKRLE's note issuance.

Disclaimer Note

CMBIGM provides the analysis based on publicly available data, with risks noted for investors. The firm has investment banking relationships with covered companies, and a conflict of interest may affect objectivity.

For detailed data and trends, refer to the full report.