CMBI Credit Commentary Summary
Core Content Overview
This document is a Fixed Income Daily Market Update from the CMBI Credit Commentary, summarizing key developments in the fixed income market, including new issuance activity, price movements, and macroeconomic news. It also provides desk analyst comments on specific securities and includes a news and market color section with recent corporate actions and regulatory updates.
Key Market Updates
New Issuance Activity
- KORGAS 29-31s: Widened 2-3bps from ROs.
- MITCO 31s: Tightened 5bps from RO at T+47.
- MITCO 36s: Unchanged.
- HYNMTR 29s: Tightened 1bp from RO at T+70.
- HYNMTR 33s: Widened 2bps from RO at T+93.
- TENCNTs: Traded 2bps wider.
- TW lifers: Unchanged to 2bps wider.
WLISRC T2 Issuance
- WLISRC 7.875 06/23/36: Priced at 8.0% yield, 0.5pt lower from RO at 99.493.
- The issuance reflects a premium for smaller scale and shorter operating history.
- Preferred Asian Lifer Securities:
- FUBON 5.45 12/10/35
- NSINTW 5 7⁄8 03/17/41
- RESLIF 6.875 Perp
- SUMILF 5.875 Perp
Other Price Movements
- LNGFOR 28-32: Traded 0.3-0.6pt higher.
- WESCHI 28-29: Lost 0.4-0.5pt.
- LASUDE 26: Gained 1.0pt in HK.
- LIFUNGs: Traded 0.1-0.9pt higher.
- FAEACO 12.814 Perp: 0.4pt weaker.
- Macau gaming complexes: Unchanged to 0.5pt higher.
- European AT1s: STANLN 7 Perp gained 0.5pt.
- SE Asian Perps: VLLPM 29/GARUDA 31 marked 3.8-4.4pts higher.
- LGFV: QDJZWDs gained 0.1-0.2pt.
Top Movers
Top Performers
| Security |
Price |
Change |
| VLLPM 9 3/8 07/29/29 |
44.5 |
+4.4 |
| GARUDA 6 1/2 12/28/31 |
88.3 |
+3.8 |
| VNKRLE 3.975 11/09/27 |
46.8 |
+1.7 |
| VNKRLE 3 1/2 11/12/29 |
44.5 |
+1.5 |
| NWDEVL 5 1/4 PERP |
84.8 |
+1.2 |
Top Underperformers
| Security |
Price |
Change |
| PTTGC 5.2 03/30/52 |
90.2 |
-0.9 |
| CFAMCI 5 1/2 04/27/47 |
98.2 |
-0.7 |
| BEIENT 6 3/8 05/12/41 |
109 |
-0.6 |
| NWDEVL 4.8 PERP |
56.0 |
-0.6 |
| WDSAU 5.7 09/12/54 |
95.8 |
-0.6 |
Macro News Recap
- U.S. Markets: S&P (+1.65%), Dow (+0.92%), and Nasdaq (+3.07%) rose on Monday.
- U.S. Treasury Yields: 2/5/10/30 year yields were at 4.07%/4.18%/4.47%/4.97%.
- Bank of Japan: Raised benchmark interest rate by 0.25% to 1.0%, highest since 1995.
- Bank Indonesia: 25 bps rate hike challenges property sector recovery.
- ACENPM: ACEN to sell up to 49% stake in a solar energy project in India to DIRO for undisclosed amount.
- CTFSHK: CTF Services plans to sell more low-performing toll roads and reinvest proceeds.
- DAESEC: Mirae Asset under investigation in South Korea for failure to obtain SpaceX IPO shares.
- ROADKG: Road King Infrastructure scrapped acquisition of Beijing JV and seeks to recoup paid installment.
Company Information
- Well Link Life Insurance:
- A small life insurer in Hong Kong, regulated by HKIA.
- 100%-owned by Well Link Insurance Group, which is 82.68% owned by Mr. Xu Chujia.
- Market shares in FY25: 2.9% (total NBP), 4.8% (agents and brokerage), 7.4% (brokerage).
- PBT increased 31.4% yoy to HKD273.3mn.
- Investment portfolio: 83% bonds, 13% equities, 4% cash and deposits.
- RBC ratio: 217%, above regulatory minimum.
Offshore Asia New Issues
Priced Issues
| Issuer/Guarantor |
Size (USD mn) |
Tenor |
Coupon |
Priced |
Issue Rating |
| Hyundai Capital America |
400/1250/750/600 |
2yr/3yr/5yr/7yr |
4.5%/4.75%/5.0%/5.25% |
T+55/T+70/T+83/T+93 |
A3/A-/A- |
| Korea Gas Corporation |
350/350 |
3yr/5yr |
SOFR+45/4.5% |
SOFR+45/T+33 |
Aa2/AA/AA- |
| Mitsubishi Corporation |
500/500 |
5yr/10yr |
4.625%/5.125% |
T+47/T+70 |
A2/A/- |
| Well Link Life Insurance |
200 |
10NC5 |
7.875% |
8.0% |
-/BB+/BB+ |
Pipeline Issues
| Issuer/Guarantor |
Currency |
Size (USD mn) |
Tenor |
Pricing |
Issue Rating |
| China Education Group |
USD |
- |
3yr |
T+220 |
-/BBB/- |
| HDFC Bank |
USD |
- |
5yr |
T+120 |
Baa3/BBB/- |
Author Certification
- The author certifies that all views expressed reflect their personal views.
- No compensation is tied to the specific views in this report.
- The author has not traded in or dealt with the securities covered in the last 30 days.
- The author is not subject to any conflicts of interest affecting the report's objectivity.
Important Disclosures
- Investment Risks: The report is for informational purposes only and does not provide tailored advice.
- No Liability: CMBIGM is not liable for any losses incurred from relying on the report.
- Legal Responsibility: In Singapore, CMBISG accepts legal responsibility for non-accredited investors only to the extent required by law.
- U.S. Restrictions: The report is intended for major U.S. institutional investors only and must be used through a U.S.-registered broker-dealer.
- UK Restrictions: The report is only provided to persons falling under Article 19(5) or Article 49(2) of the Financial Promotion Order 2005.
Contact Information
- Fixed Income Department: Tel: 852 3657 6235 / 852 3900 0801
- Email: fis@cmbi.com.hk
- Analysts:
