20230821-招银国际-Fixed_Income_Daily_Market_Update_5页_720kb

Summary of Fixed Income Credit Commentary (21 Aug 2023)

Market Overview: The Asian IG space widened by 5-20bps amid weak sentiment; new issues like HKLSP and CICCHK were 5-10bps wider, while high-beta TMT sectors widened 5-20bps. Other sectors like LGFV/SOE and AT1 retreated, influenced by collateral damage from declining COGARD shares.

Company Analysis:

• Longfor Financials: Shares rose 225-375 points post-1H23 results. Longfor is viewed as a sector survivor, with managed near-term maturities and a diversified portfolio of investment properties, offering good risk-return profile. Next key maturity is in Apr 2027.
• COGARD: Announced first maturity extension of onshore bond 16BiYuan05 for 3 years, with partial principal repayments starting from Oct 2023. This may set a precedent for managing upcoming bond redemptions, despite challenges in liquidity and contract sales decline.

Trading Insights: Markets traded softer with heavy selling pressure; new issues underperformed, and sectors like TMT and Asian properties faced selling interest. In China, bond movements were mixed, with central bank rate cuts and property-related entities under scrutiny.

Macro News Recap: Global markets fell, with PBOC cutting LPR, Eurozone CPI declining, and US Treasury yields slightly retreated. Asia new issues were under better selling, and various companies reported mixed results or news events.

Key Highlights: Property-related volatility persists, with COGARD and Longfor leading company-specific discussions. Risk factors include liquidity strains and economic uncertainties.

Disclosures: Consult important disclaimers for investment risks, as this analysis does not constitute advice.