20240201-招银国际-Fixed_Income_Daily_Market_Update_6页_878kb

Fixed Income Credit Commentary

Date: 1 February 2024

Commentaries Summary:

• Asian IG markets: Wider bid/offer spreads throughout the morning with balanced two-way trading. European AT1 securities and Thai financials underbid. Japan's insurance sector attracted strong bids.
• NWS Holdings (NWDEVL Bonds): Redeemed USD 1,019 million of USD 575 Perpetuals on their first call date. These offerings are part of a broader restructuring that includes a preference for high-coupon step-up perpetuals (NWDEVL615 Perp is highlighted).
• China Economy: Caixin manufacturing PMI slowed GDP growth expectations for 2024 to reflect persistent deflationary pressures, while services PMI showed slight improvement. Policy adjustments were expected, including LPR cuts, fiscal policy expansion, and continued home purchase looseness.

Trading Desk Comments

• Sector-specific movement: Japanese corporate bonds (JRAC, JALC), Chinese IG securities (BABA, TENCENT), high-yield names, and ASIAN infrastructure (GLPSP, GLPCHI, VNKRLE, FOSUNI) showed buying interest. Chinese real estate (DALWAN, VNKRLE) and other high-risk names were lower. Trading is ahead of the CNY holiday with profit-taking noted.
• New Issues: GZDZCD raised USD 400 mn with a green bond. QDHTCO priced a USD 280 mn bond at par.

Market Top Movers

• Top Performers: GLPSP, GLPCHI, FOSUNI rising.
• Top Underperformers: GEMDAL (down significantly), VNKRLE, DALWAN, AIA declining.

Macro News Recap

• Global markets weak, likely Fed has ruled out March cut. China's industrial output decelerated; Caixin manufacturing PMI came in as expected, indicating ongoing contraction. US/TJ/TN yields retreated.

Analysts Comments

• Recaps key actions like NWS redemption, details on NWDEVL bond profile and coupon step-up. Provides China economic outlook and policy guidance.
• Offshore Asia New Issues: Pipeline includes Greenko; recent pipeline includes Jinko, Rakuten, etc.

Author Certification & Important Disclosures

• Includes standard certification and disclaimers about independence, trading activity, affiliations, risk, etc., outlining use limitations and responsibility.