20240104-招银国际-Fixed_Income_Daily_Market_Update_5页_818kb

Fixed Income Market Update Summary (4 Jan 2024)

• Market Overview: Markets were weak this morning, with IG benchmarks widening 2-3bps. New issues in Indonesia declined, while the AMC space remained stable post-Fitch downgrade. Quality LGFV/sovereign perpetuals saw buying interest.
• Trading Desk Comments: Asia pre-Japan IG space traded weak, as US Treasuries rebounded. Chinese SOE/TMT benchmarks widened 2-5bps, high-beta TMTs like China A-50 widened 3-4bps. Leasing sector bonds showed some ease, but SOE and sovereign perps were resilient. In India, VEDLN bonds rose, driven by strong debt holder support in liability management solicitations.
• Macau Gaming: GGR recovery continued, with cumulative 2023 GGR up 333.8% YoY (MOP183.1bn), though percentage growth moderated due to higher基数. Operators show positive EBITDA trends, supporting credit profiles.
• Macro News Recap: US Dec 2023 ISM manufacturing PMI was 47.4% (higher than expected), long-term US Treasuries yields declined. China Dec 2023 Caixin services PMI was 52.9% (surpassing expectations).
• Analyst Comments: Vedanta secured high bondholder consensus for liability management, easing liquidity pressure. Macau gaming outlook improved with ratings changes, recommending operators like MPEL and SJM for recovery bets. S&P downgraded Vedanta to CC, affecting specific bond recommendations.
• Key Moves: Top performers included VEDLN and Macau gaming names, while underperformers like SHUION and IDRASAL50-51 showed declines. No new issuance details beyond pipeline, but VEDLN and new Macau-focused bonds highlighted.