20230420-招银国际-Fixed_Income_Daily_Market_Update_5页_724kb

Fixed Income Credit Commentary Summary

Market Overview

• Markets were quiet this morning, with TMT securities skewed to sell and widening by 2-5bps. Bank T2s in financials were better bid, while AMC papers were mostly unchanged. CKHH '28/33 had balanced trading yesterday.

Asian T2s

• Lower-beta plays preferred in volatile times, with picks including ANZ 2950 7/22/30, KBANK 3343 10/02/31, SHINFN 3340 2/05/30, and WSTP 2904 02/04/30, favored for their risk-return profiles.
• Likelihood of non-viability events is low, with high return predictability due to solid capital adequacy and stable dividend policies.

Trading Desk Insights

• SINOCE experienced sharp declines due to credit concerns but denied creditor committee rumors and stated plans to redeem notes.
• Other movers: DALWAN lost ground, while EHICAR gained, with India and other industrial papers reacting to news.
• China SOEs and properties saw selling pressure, while TMT bonds edged wider in yield spreads.

Macro News Recap

• US stocks stable, Fed reports moderation in employment growth. UK CPI rose unexpectedly.
• US Treasury yields climbed, with the 2-5-10-30 yield curve bearing flattening to 4.24%-3.71%.

Analyst Comments

• Asian T2s outperformed senior and global peers, with better liquidity and muted price actions.
• Return predictability is higher for Asian bank papers, especially T2s, compared to AT1s, due to seniority and call option stability.

Offshore Asia New Issues

• Recent: ReNew Energy bond issued, while pipeline includes Pertamina Geothermal.
• Onshore: Credit bonds raised significant funds, with year-on-year growth.

Market News Highlights

• BAYAN Resources increased capex, Wanda Film stock sales planned.
• Haidilao credit ratings affirmed.
• Yuexiu Property trading halted due to inside information.

Disclaimers

• This report contains investment risks and is not advice; information is based on publicly available data and subject to change. CMBIGM is not a US broker-dealer and has jurisdictional limitations.