20230811-招银国际-Fixed_Income_Daily_Market_Update_5页_901kb

Fixed Income Market Summary: August 11, 2023

Market Overview

Fixed income markets were quiet on the morning of August 11, 2023, partly due to a Japanese holiday. Rates rose, leading to some bond tightening and TMT sector weakness. Key movers included bond price changes: SHUION (53/41 2023) gained, while FTLNHD (48 2024) and others declined. Trading desks noted cautious tone amid US CPI data expectations and balanced market flows.

Company-Specific Updates

• Glenn Ko and colleagues addressed COGARD's profit warning, highlighting expected net losses of up to RMB 55 billion, with refinancing pressures remaining high and commitments for deleveraging and debt management. Upcoming maturity dates were listed.
• For CAPG, the RSA fee deadline was extended to August 31, and restructuring approvals were discussed, with a tight timeline involving court filings.

New Issues and Pipeline

• Recent offshorAsian new issues included Linyi City Construction Investment Group Co., Ltd. with a 3-year bond at 7.4% coupon.
• No pipeline updates for August 11.

Key News and Market Colors

• Macro news recap: US CPI data showed lower than expected increases, impacting Treasury yields; initial unemployment claims were higher than anticipated.
• Other news: CSRC held a meeting with property companies on real estate; COGARD was downgraded by Moody's; property companies like SINOCE and ZHPRHK reported financial updates and losses.

Analyst Comments

• Trade desks emphasized property market sluggishness and sector-specific trends, such as TMT bonds tightening and financial improvements in some areas. Debt restructuring plans were discussed for COGARD and CAPG.

Note: This summary is based on the provided report content. For detailed recommendations, refer to the full report.