20230613-招银国际-Fixed_Income_Daily_Market_Update_5页_790kb

Fixed Income Credit Commentary Summary

Market Environment

Markets were cautious and quiet ahead of CPI and FOMC meetings, with recent new issues underperforming in some cases. HKAA and BOCAVI bonds were under better selling, while HRINTH yields decreased by 0.25-0.50 points. In LGFV, YWSOAO benefited from a new issue mandate, showing active trading.

Key Transactions

• HSBC Holdings PLC: Priced USD2 billion 11NC10 bond with 6.547% coupon and yield to maturity.
• RSMACA (RSM): Consent solicitation concluded with Xiamen SASAC and C&D Inc included, threshold lowered to 29%.
• BTSDF (H&H): Exchange offer completed with 69.3% of bond tendered, results easing repayment pressure; new notes to have min 13.5% coupon.

Regional Performance

• Asia ex Japan: Mixed, with China SOEs tightening yields and TMT paper better bought.
• Chinese properties: Weaker due to regulatory risks, with DALWAN down significantly.
• Korean and Indian markets: Soft performance; Korean corporates better bought.
• Financials: HRINTH curve stable but closed unchanged; AT1 paper better offered in some cases.

Macro News

• US markets rallied with S&P +0.93%, stocks led by tech; crude oil prices down ~4%.
• China Aoyuan reached standstill with creditors for USD4bn debt; other companies like Country Garden and Sino-Ocean handled repayment extensions.

Risks and Notes

• Author certification: Views reflect personal analysis, no compensation ties.
• Important disclosures: No guarantee on investments, past performance not indicative; potential conflicts of interest may exist.

Other Updates

• Offshore Asia: No new issuance pipeline announced.
• Onshore Chinese market: High issuance volume (RMB618bn month-to-date), credit bond activity remains strong.