20240307-招银国际-Fixed_Income_Daily_Market_Update_5页_988kb

Fixed Income Market Update Summary

Date: March 7, 2024

Market Overview

• Overnight UST yields tightened across the curve.
• Asian IG flow favored better selling with unchanged space.
• VNKRLE prices weakened slightly, down by 0.04-0.07 points.
• EHICAR notes moved higher; partial exchange plan for EHICAR '24 discussed.
• SJMHOL results show EBITDA positive, GLP breakeven; unchanged or slightly lower post-results.

Trading Desk Insights

• U.S. Treasury yields retreated yesterday, with 2-, 5-, 10-, and 30-year yields at 4.55%, 4.12%, 4.11%, and 4.24% respectively.
• Asia: New BNKEA notes priced higher; KR spreads widened in financials and Chinese IGs.
• Chinese IGs like HAOHUA and TMTs saw wider spreads due to choppy sentiment; SOEs and LGFVs stable.
• EHICAR '24/26 moved higher; Indonesian and Macau gaming names mixed; bancinsurance sought after.

Analyst Comments

• EHICAR '24: Positive outlook on partial exchange plan; refinancing could extend maturity profile as operating performance recovers. Plans include US IPO for longer-term funding.
• SJMHOL: Buy recommendation maintained; FY23 results show sharp revenue and EBITDA improvement; market share lower due to satellite casino closure; liquidity sufficient despite higher debt.

Macro News Recap

• Markets rebounded; S&P 500 up 0.51%, Dow +0.20%, Nasdaq +0.58%.
• China export/import growth exceeded expectations at +71%/+35% YoY.
• UST yields retreated, signaling potential market recovery.

New Issues and Market Color

• Offshore Asia: BNKEA issued 500MM 3NC2 note with positive spread.
• Pipeline: No new Asia New Issues.
• News: Adani Green may offer USD1.2B bonds; China Evergrande's resumption guidance; JD.com FY23 reported revenue and EBITDA increases; Sinopec fuel oil acquisition discussions.

Note: This summary covers key highlights from the fixed income market update, focusing on market movements, security analyses, and relevant news.