20230529-招银国际-Fixed_Income_Daily_Market_Update_4页_789kb

Global Fixed Income Market Update (May 29, 2023):

Asian Market Summary:

• Asian high-grade (IG) yields tightened by 2-3bps overall. Chinese real estate (CRE) yields saw a 0.5-1.5pt sell-off, with Dalian Wanda Commercial Management (DALWAN) down 4.5 points after addressing rumors regarding acquisition by China Resources, plaza sales, and data fraud, while also clarifying plans to securitize malls for cash.
• China SOEs (Chinese Perps) saw weaker buying interest, with some trading lower (SOE Perps weak). Sino-Ocean Capital (SINOCL) saw stable trading after initiating consent solicitation for bond extension/maturity change (6y till Jun '29, deferred accrued interest payment, cut coupon from 6.25% to 5%, annualized payments, PIK option at 6%, redemption provisions). Chinese TMT benchmarks (BABA/TENCENT) saw selling interest, while BBB TMTs widened 4-6bps. Industrial names (HILOHO '24/EHICAR '26) marked down. Macau gaming names fell.

Other Asia-Pacific Markets:

• India: Vedanta Long term (VEDL) and Grasim Long term (GRNKEN) bid up slightly.
• Indonesia: Medco Energi (MEDCI) and Indoproperty (LMRTS) fell 0.25-0.75pt.
• Hong Kong: GFH Implied Cds slightly higher.
• China Yields: SOE Perps/Chinese AT1s under selling pressure. Onshore primary issuance activity noted. Rates for callable bank paper retreated (insurers lowered parking demand targets to ~6%). Offshore Asia new issues pipeline light.

Yields and Prices (Select Names):

• SINOCL 6.25 06/22/23: Px (ask) 26.38, YTM (ask,%) 3.40%, Amt o/s USD497 mn.
• GLPCHI 497402/26/24: Price 84.847% (mixed trend).
• YUNINV '25: Sold off 25pts.
• EHICAR '26: Price 57.5% (sell-off 21pts).
• FTLNHD '24: Sold off 20pts.

Global Macro & Market Sentiment:

• U.S. markets positive last week, driven by tech stocks. Debt ceiling deal passed. US Initial Jobless Claims above expectation slightly. Treasury yields moved (10yr up to 3.86%).
• Consent solicitation for SINOCL bonds detailed (maturity extension, deferred accrued interest, lower coupon, PIK option added, redemption call provision).

Key Participants: Glenn Ko (CFA), CFA Glenda Tse (CPA), Wu Tsai-yi, Wang Shichao.

Note: Author Certification and Important Disclosures regarding independence, conflict management, and liability details apply.