20240923-招银国际-Fixed_Income_Daily_Market_Update_5页_815kb

Market Overview and Key Developments for Fixed Income Credit as of 23 September 2024

On 23 September 2024, the fixed income market showed mixed performances, with emphasis on Asian and global bond segments. Key highlights include:

• Credit risk indicators: KRKPSC's 2027/29 credit rating outlook was revised to negative by S&P, with a widening of 19-12 bps, while DALWAN's bonds dropped 1-2 points. New long-term bond issues saw positive flows in China. Trading in high-yield names like Chinese IGs was moderate, with some profit-taking in LGFVs.

• Analyst comments: Asian IG space remained stable, but flows were mixed. Specific bond movements: VNKRLE debt strengtheners rose sharply, while LNGFOR and SINOPE bonds weakened due to profit-taking. In corporate bonds, HRINTH gains suggested improved credit. MEDCIJ bonds were stable but notched gains amid active trading.

• MEDCIJ focus: MedcoEnerggi launched a tender offer for its 2026 and 2027 bonds, with early deadlines set for 3 October and offers expiring on 21 October. Maximum acceptance amounts were USD 100mn for 2026 and USD 50mn for 2027 bonds. Medco's strong liquidity (USD 6.6bn cash) supports early redemption plans; analyst recommendation maintains a buy view on MEDCIJ due to better risk-return profiles.

• Offshore Asia news: No new priced bonds that day; pipeline includes various bank and financial institution deals. Onshore primary market saw high issuance volumes in RMB bonds.

• Macro updates: S&P indices mixed; US Treasury yields retreated, favoring shorter maturities.

In summary, the market exhibited volatility with positive catalysts for certain credits but caution advised due to economic uncertainties and specific issuer risks. Investors should seek professional advice for personalized decisions.

(Note: Summary is based on core content, excluding standard disclaimers.)