20260716-招银国际-Fixed_Income_Daily_Market_Update_5页_765kb

CMBI Credit Commentary Summary

Core Content Overview

This document provides a detailed summary of the fixed income market update and key analyst comments for the Asian Investment Grade (IG) credit space. It includes insights on pricing, trading activity, new issues, and macroeconomic news that may impact the market.

Market Update Summary

• Asia IG Space: The market was 2bps wider to 2bps tighter with light flows. The new NACF Float 30s and NACF 31s remained largely unchanged from the Reference Offer (RO) at SOFR+60 and T+42, respectively.
• LGFV USD Issues: Lower-yielding LGFV USD issues saw better selling.
• 10yr CNH IG TMTs: These edged 0.3-1.0pt higher.
• CINDBK 5 Perp: The new USD CINDBK 5 Perp edged 0.5pt higher from RO at par, while the new CNH CINDBK 2.3 Perp rose 1.5pts from RO at par, supported by solid onshore demand.
• INDYIJ 29s: These were 0.5pt higher this morning.
• Top Movers: The table highlights the top and underperforming issues, including AXIATA, CSCHCN, TSTSME, BHP, BABA, and others.

Trading Desk Comments

• Asian IG Credit: Overall, the market was relatively muted, with spreads closing unchanged to 2bps wider. TMT BABA 35s and TENCNT 36s saw tactical profit-taking, while ZHOSHK closed 0.2pt lower.
• TW Lifers: These were unchanged to 2bps wider, with small better buying in NSINTW.
• KR IG Credits: Remained range-bound in thin volumes and light better selling in front-end industrial and quasi-sovereign FRNs.
• JP IG Space: Leaked 1-2bps wider due to better selling in recent new issues, especially long-duration tranches and FRNs.
• Higher-Yielding Space: JP insurance subs and European AT1s traded 0.1pt lower to 0.1pt higher. VEDLNs were 0.2pt lower to 0.1pt higher. In Greater China, WESCHI 28-29 leaked 0.1-0.6pt. The NWDEVL/VDNWDL complexes traded unchanged to 0.5pt lower. VNKRLE 27-29 were 0.1pt lower to 0.1pt higher. Macau gaming complexes were unchanged to 0.1pt higher.
• Front-End LGFV Issues: Remained largely afloat as RMs continued to buy high-yielding names across CNH and USD papers.

Macro News Recap

• US Markets: S&P (+0.38%), Dow (+0.29%), and Nasdaq (+0.62%) were higher on Wednesday.
• Crude Oil Inventories: Decreased by 1.692mn barrels, lower than the market expectation of 1.800mn barrels.
• UST Yields: Lower on Wednesday, with 2/5/10/30 year yields at 4.13%/4.26%/4.55%/5.08%.

CINDBK Perp Pricing Analysis

• USD CINDBK 5 Perp: Priced at 5.0%, tightened from an Initial Public Tender (IPT) of 5.45%. The issue size is USD400mn with an order book of over USD2bn.
• CNH CINDBK 2.3 Perp: Priced at 2.3%, tightened from an IPT of 2.9%. The issue size is CNH1.33bn with an order book of over CNH10.3bn.
• Key Features: Callable on 22 Jul'31 with prior written consent from the HKMA. Subject to non-viability loss absorption and dividend stopper.
• Bank Profile: CINDBK is the 9th largest commercial bank in Hong Kong by total assets. It is 75% owned by China CITIC Bank, which is c60% owned by CITIC Limited.
• Financial Performance (FY25): Operating income rose 2.9% yoy to HKD10.9bn, driven by non-interest income growth. Net interest income declined 1.0% yoy to HKD7.8bn. NIM compressed to 1.51% from 1.79%. Cost-to-income increased to 45% from 38%. Profit rose 11.3% yoy to HKD3.1bn. ROAA declined to 0.56%, while ROAE improved to 6.16%.
• Lending and Asset Quality: Total loans increased 7.4% yoy to HKD246bn. CRE proportion declined to 30% from 36%, but absolute exposure remained flat. Impaired loan ratio declined to 1.76% from 2.13%. NPL coverage ratio improved to 78.1% from 51.1%. CET1 ratio is at 15.8%, well above the regulatory minimum.

Offshore Asia New Issues

Key News and Market Color

• Onshore Primary Issuances: 119 credit bonds were issued yesterday with RMB137bn raised. Month-to-date, 932 credit bonds were issued with RMB938bn raised, a 6.8% yoy decrease.
• ARAMCO: Expected to ship no term crude to Chinese refiners in Aug'26.
• BHP: Workers to strike at key Australian iron ore export hub on 16 Jul'26. Iron ore production rose 1% yoy to 264.7mn tons in FY26.
• Freeport Indonesia: Cut 2026 gold output target 16% to stabilize operations.
• Fubon Life: After-tax profit was TWD1.7bn in Jun'26 and TWD55.6bn in 1H26.
• Sammaan Capital: Board panel to consider buyback of USD-denominated bonds.
• Medco Energi Internasional: Scheduled update meetings with fixed income investors between 27 and 29 Jul'26.
• Nan Shan Life: Pretax profit up 163.7% yoy to TWD38.5bn in 1H26.
• Rio Tinto: Paid USD443mn to Mongolian government following audits.
• China Petroleum & Chemical: Conducting business overhaul to boost profit amid softening demand.
• Vedanta Resources: Accepted all valid tenders for VEDLN issues.
• China Vanke: Extended USD55m loans from United Overseas Bank.

Author Certification

• The author certifies that the views expressed accurately reflect their personal views on the subject securities.
• No part of their compensation is related to the specific views in the report.
• The author and their associates have not traded in the stocks covered in the report within 30 days prior to the report's issue, and will not trade within 3 business days after.

Important Disclosures

• The report contains general information and is not tailored to individual investors.
• Past performance does not indicate future results. Investment returns are uncertain and may fluctuate.
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Disclaimer by Jurisdiction

• United Kingdom: The report is provided only to certain persons under the Financial Services and Markets Act 2000.
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