20240109-招银国际-Fixed_Income_Daily_Market_Update_5页_914kb

Summary of Fixed Income Credit Commentary - January 9, 2024

This daily market update is provided by the Fixed Income Department at CMB International Global Markets, dated January 9, 2024. It analyzes the fixed income market performance and key news.

Market Overview
Market sentiment recovered after rates declined in the previous session. New issues saw HEUELE '27 unchanged and HEUELE '29 tighten by 5 basis points (bps), while Asian investment-grade (IG) spreads tightened 1-3bps. The front-end bonds remained heavy on selling, reflecting ongoing market dynamics.

Key Bond Events

• ADANIG: A cash redemption plan for ADANIG 4⅜ due September 2024 was announced, with sources including internal cash, joint ventures with TotalEnergies, and preference share issuance. The bond is recommended with a buy stance as a short-dated yield pick-up.
• DALWAN: Dalian Wanda Commercial Management redeemed and cancelled 10% of the USD600mn principal of DALWAN '24. The bond's price moved from -0.05 to +0.01 points. Buy recommendation maintains despite expected IPO delays for related entities.

Trading Desk Insights
Asian IG spreads were largely unchanged or widened slightly, with better selling pressure on China/HK/KR papers. Chinese SOEs and TMTs showed mixed performance, with high-beta TMTs widening. Financials saw minor declines. Top performers included LMRTSP '406/19/24 and CSCHCN papers, while underperformers like GEMDAL and KMRLGP showed losses.

Macro News Recap
US markets rose significantly across S&P, Dow, and Nasdaq. Inflation projections from the New York Fed fell to the lowest level in three years. UST yields retreated slightly, with 2-, 5-, 10-, and 30-year yields at specific levels.

New Issues

• Priced: ANZ Banking Group 3yr bond @4.75%, SK Hynix 3/5yr bonds @5.5%, Zhejiang Xinchang 3yr bond @6.0%.
• Pipeline: BOC Aviation, Hanwha, Ji'An Chengtou, Sumitomo Life Insurance under discussion for new issues.

Additional market activities include onshore primary issuances raising RMB48bn, with plans by BCDHGR and CHIGRA to manage debt repayments. Top movers like CSCHCN and SHUION showed price changes, while news on real estate and energy investments added volatility.

Overall, the report emphasizes recommendations for specific bonds and cautions on market risks, with final author certifications and disclaimers reiterating professional advice guidelines.