20240108-招银国际-Fixed_Income_Daily_Market_Update_6页_1mb

Fixed Income Credit Commentary Summary (8 Jan 2024)

Market Overview

• Asian IG space prices remained relatively unchanged or saw slight widenings, with front-end names under better selling pressure. New World Development repurchased $204mn of bonds and a perpetual, with no significant price change.
• VEYONG's 3.375% bond rose 0.5pt due to a tender offer to purchase up to $120mn.
• ICBCIL's 3.625% bonds were down 0.1pt amid a consent solicitation to amend terms related to change of control and Keepwell provisions.

Trading Desk Insights

• Key transactions included the pricing of new EIBKOR bonds at T+53/T+63/T+73 basis points tighter, absorbed well across Asia ex-Japan.
• China/HK/KR/TH markets weakened with heavy selling; Chinese SOEs and TMT benchmarks saw widening of 2-5bps, while Macau gaming names declined.
• asia-wide trends included Heavily traded high-beta sectors and long-end SOES yielding lower, with SOE perpetuals and LGFVs showing firm sessions.

Top Movers

• Best performers: CSCHCN (315-28bps widen), PLNIJ (various widenings)
• Worst performers: PLNIJ (contraction), ZENENT (contraction), LMRTSP (contraction)

Macro News Recap

• US Dec '23 NFP was +216k, higher than expected, with unemployment rate at 3.7%. US yields rose, with long-end yields reaching 440%/402%/405%/421% for 2/5/10/30 years.

Analyst Comments

• NWD: Repurchased $204mn of bonds in-market opportunistic buyback, with potential for further repurchases of specific bonds.
• ENN Natural Gas: Tender offer to purchase up to $120mn VEYONG bonds, affecting cash levels and debt; bond price rose due to early bid opportunities.
• ICBCIL: Consent solicitation to amend change of control and Keepwell terms to strengthen covenant management; early voting deadline was 24 Jan 2024.

For detailed bond profiles and additional information, refer to the original report.