CMBI Credit Commentary - Fixed Income Daily Market Update Summary
📌 Core Content Overview
This report provides a summary of the fixed income market activity and macroeconomic updates from the Fixed Income Department of CMBI. The focus areas include Asia's investment-grade (IG) bonds, Macau gaming sector, new issues, and macroeconomic data from the US and other regions.
📈 Market Movements
🇨🇳 China IG Space
- TENCNT/BABA/KUAISH 10yr papers tightened 2-5bps.
- BABA 35/MEITUA/XIAOMI/AACTEC tightened 1bp amid better buying.
- HK T2s BNKEA/NANYAN/DAHSIN closed largely unchanged.
🇯🇵 Japan IG Space
- MIZUHO 30-47s and SUMIBK 32-47s widened 1-3bps from ROs.
- Japanese AT1s and insurance subs closed largely unchanged.
🇪🇺 European IG Space
- INTNED 7.25 Perp and ACAFP 6.7 Perp closed 0.7-1.0pt higher.
- The rest of the European AT1s and insurance subs edged 0.3-0.4pt firmer.
🇰🇷 Korea IG Space
- SKONKR/NHSECS/HANFGI/HYUELE/POINTL were unchanged in spreads.
🇹🇼 Taiwan IG Space
- GLPCHI 29 and NWDEVL 4.125 Perp gained 0.5pt.
- NDPAPE 14 Perp lost 0.5pt.
🇻🇳 Vietnam IG Space
- VEDLN 32-37s were 0.2-0.6pt firmer.
- The rest of VEDLNs were 0.1pt lower to 0.1pt higher.
🇱🇰 Sri Lanka IG Space
- LGFV names saw two-way skewed flows, with small better buying.
🇸🇬 Singapore IG Space
🏢 Key News and Developments
🇨🇳 Macau Gaming Sector
- GGR growth slowed to 6.8% yoy in 1H26, attributed to the FIFA World Cup diverting gambling budgets and lower visitation.
- 1H26 GGR reached MOP126.9bn, which is 84.9% of the 2019 level.
- 2026 full-year GGR forecast is MOP236bn, and the current run-rate is slightly ahead of the 2025 pace.
🇨🇳 Onshore Primary Issuances
- 63 credit bonds issued yesterday with RMB72bn raised.
- Month-to-date issuance reached RMB72bn, showing a 2.1% yoy increase.
🇨🇳 Regulatory and Market Activity
- China tightened regulations on high-cost offshore bonds.
- XIAOMI cut smartphone shipment target by 30% due to rising costs and component shortages.
🇯🇵 Japan
- Rakuten received JPY150bn in subsidies for its satellite business.
- SoftBank restarted talks for a USD10bn loan backed by OpenAI stock.
🇮🇳 India
- Adani Ports sold 49% stake in Vizhinjam port to MSC arm TiL for USD1.4bn.
🇸🇬 Singapore
- VEDLN unit CopperTech Metals deferred its US IPO due to market volatility.
🇬🇧 UK
- Barclays acquired Canary Wharf HQ Building for GBP750mn (cUSD993mn).
🇹🇼 Taiwan
- Seazen Holdings issued a RMB2.1bn tap of private REIT.
🇲🇴 Macau
- Fosun International began construction on a mixed-use redevelopment project in Hong Kong, expected to require HKD10bn (cUSD1.28bn) investment.
- MGMCHIs, SANLTDs, and SJMHOL 28 are viewed as neutral due to valuation concerns.
📊 Top Movers (Last Trading Day)
| Top Performers |
Price |
Change |
| INTNED 7 1/4 PERP |
105.8 |
+1.0 |
| VLLPM 7 1/4 07/20/27 |
69.1 |
+0.8 |
| ACAFP 6.7 PERP |
100.8 |
+0.7 |
| VEDLN 7 3/4 07/13/37 |
99.6 |
+0.6 |
| NWDEVL 4 1/8 PERP |
82.2 |
+0.6 |
| Top Underperformers |
Price |
Change |
| BABA 5 5/8 11/26/54 |
99.2 |
-1.5 |
| MTRC 5 1/4 04/01/55 |
98.7 |
-1.4 |
| PETMK 5.848 04/03/55 |
103.4 |
-1.3 |
| SUMIBK 6.184 07/13/43 |
105.9 |
-1.3 |
| TAISEM 4 1/2 04/22/52 |
92.6 |
-1.3 |
📊 Macau Gaming Bond Picks
| Security Name |
ISIN |
Amt o/s (USD mn) |
Ask Px |
YTM |
Mod Dur |
| MPEL 5 3/8 12/04/29 |
USG5975LAE68 |
1,150 |
97.6 |
6.1% |
3.1 |
| MPEL 7 5/8 04/17/32 |
USG5975LAK29 |
750 |
102.6 |
7.1% |
2.4 |
| MPEL 6 1/2 09/24/33 |
USG5975LAL02 |
500 |
98.3 |
6.8% |
5.6 |
| SJMHOL 6 1⁄2 01/15/31 |
XS3267117995 |
540 |
95.0 |
7.8% |
3.7 |
| STCITY 6 1/2 01/15/28 |
USG85381AF13 |
500 |
100.0 |
6.5% |
0.1 |
| STCITY 5 01/15/29 |
USG85381AG95 |
1,100 |
96.0 |
6.8% |
2.3 |
| WYNMAC 5 1/2 10/01/27 |
USG98149AD29 |
750 |
99.9 |
5.6% |
1.2 |
| WYNMAC 5 1/8 12/15/29 |
USG98149AE02 |
1,000 |
97.8 |
5.8% |
3.1 |
📝 New Issues (Priced)
| Issuer/Guarantor |
Size (USD mn) |
Tenor |
Coupon |
Issue Rating (M/S/F) |
| Lotte Rental |
90 |
3yr |
SOFR+110 |
Baa3/BBB-/- |
| Panasonic Holdings |
500 |
10yr |
5.362% |
Baa1/A-/- |
📝 New Issues (Pipeline)
| Issuer/Guarantor |
Currency |
Size (USD mn) |
Tenor |
Pricing |
Issue Rating (M/S/F) |
| IIFL Finance |
USD |
300 (capped) |
4yr |
7.85% |
Ba3/B+/B+ |
📝 Important Disclosures
- The report is for informational purposes only and not an offer or solicitation to buy/sell securities.
- CMBIGM does not provide individual investment advice.
- The report may contain conflicts of interest, as CMBIGM may have investment banking relationships with the mentioned companies.
- No liability is accepted for any reliance on the information in this report.
- Reproduction or distribution of the report is prohibited without prior written consent.
📝 Disclaimer
- UK Recipients: Only for Article 19(5) or Article 49(2) individuals.
- US Recipients: Only for major US institutional investors, and must be executed through a US-registered broker-dealer.
- Singapore Recipients: Distributed by CMBISG, an Exempt Financial Adviser in Singapore, and subject to legal responsibility for non-accredited investors.
