20231031-招银国际-Fixed_Income_Daily_Market_Update_6页_973kb

Fixed Income Commentary Summary

Date: October 31, 2023
Source: CMBI Research

Overview

This is a fixed income credit commentary discussing market movements, new issues, macroeconomic updates, and company-specific analyses from October 31, 2023.

Market Activity

Trading Desk Comments

• Corporate Bonds: Chinese four-major banks and leasing companies saw better selling IG properties/realestate related LGFVs like CPDEV, ZHHFGR, with two-way active flows. Benchmarks showed mixed results: HAOHUA/TENCENT TRs tightened, while banks and AT1 securities benefited from buying flows.
• Performance Highlights: CPDEV moved -0.2 to +0.3 points; Lippo Karawaci (LPKRIJ) remained unchanged amid strong 9M23 results but deferred refinancing plans. High-beta TMTs and financials faced pressure.

Top Movers

• Performers: GLPCHI, VNKRLE, HRINTH.
• Underperformers: HRINTH, KMRLGP, CKINF.

Macro News Recap

• US Markets Rebounded: S&P, Dow, and Nasdaq showed gains.
• China PMI: October manufacturing/non-manufacturing PMI declined, falling short of expectations.
• US Yields: 2-, 5-, 10-, and 30-year yields reached high levels.

Analyst Comments

LPKRIJ Analysis

• Strong 9M23 results driven by healthcare, but cautious outlook due to refinancing challenges. Operating cash flow improved. Valuation is undemanding, but liquidity risks exist.

Other Companies

• CPDEV downgraded to BBB- by Fitch with stable outlook.
• ADANIG, BCDHGR, and others reported financial updates or ratings changes.

Offshore New Issues

Recent Priced Issues

• Hyundai Capital America: 2yr 6.665% notes via SOFR+132, rated Baa1/BBB+/-; Korea Investment & Securities: 3yr 6.875% bond, rated Baa2/BBB/-.

Pipeline

• Xiamen ITG: USD-denominated issuance proposed.

Market Color

• Indonesia, India, and Macau gaming names experienced mixed performances. Onshore primary issuances showed a slight YoY decrease in credit bonds raised.

Disclaimer

Author certifications and important disclosures provided the basis for analyses, highlighting potential conflicts of interest and risks in fixed income investments.