固定收益日报

PLEASE READ THE AUTHORCERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGEThe new KORWAT4.375 27 tightened 3bps from RO this morning. The newICBCAS 4.125 28/ICBCAS Float 28 were unchanged to 1bp tighter fromROs. HPHTSP 30 tightened 5bps. NIPLIF/MYLIFE 55s were down 0.1-0.2pt.The new CSIPRO 10.5 28 rose 1.3pts to 96.7 from RO.VNKRLE:Change recommendations on VNKRLEs to buy. VNKRLE 27-29swere 0.4-0.5pt higher this morning. See below.UPLLIN:FY25 EBITDA rose 47% yoy to INR81bn. UPLLIN Perp/28-30swere 0.5-1.2pts higher post results announcement. See below.Trading desk comments交易台市场观点Yesterday,CSI Properties priced the 3NC2 bond CSIPRO 10.5 05/21/28 ofUSD150mn at 95.48, net proceeds of USD141mn will be used for debtrepayment including the tender offer for CSIPRO 5.45 07/21/25 at par (o/samt of USD296.1mn). CSIPRO 25s rose 1.1pts. See our comments on14May ’25. NWDEVL 27-31s rebounded 0.1-0.9pt and closed 1.1-2.7pts lowerWTD. NWDEVL Perps moved-0.4pt to +0.5pt, closed 2.3-8.4pts lower WTD.Seeour comments on14 May ’25. The sentiment in Asia IG space was firmafter the lower-than-expected USCPI data. The recent new HSBCFloat31s/STANLN Float 31s tightened 1-2bps amid two way flows. In KR, the newKHFC Float 30s tightened 3bps from RO. PKX/LGENSO/HYNMTR 28-35stightened 2-5bps. CITNAT/DAESEC 28-30s tightened 1-3bps. In Chineseand HK IGs, BABA/TENCNT 28-35s were 1-4bps tighter. MTRC 30s/35s/55swere 1-2bps tighter. In financials, BBLTB 34-40s tightened 5-10bps. Indiabank papers such as SBIIN/EXIMBK/HDFCB 26-30s were 3-5bps tighter. JPleasing papers such as SUMIFL/SMBCAC 28-34s tightened 2-6bps. In AT1s,HSBC 6.95/UBS 9.25 Perps were down 0.1-0.3pt. JP insurance hybrids werefirm thanks to PB demand. NIPLIF 53-55s and DAIL/ASAMLI Perps were up0.1-0.3pt. In Chinese properties, VNKRLE 27-29s rose another 1.0-1.2ptsfollowing the repayment of VNKRLE 3.15 05/12/25, closed 6.1-6.3pts higherWTD. See below for comment. LNGFOR 27-32s were up 0.2-0.5pt. Outsideproperties,WESCHI/EHICAR 26s increased another 0.4pt.Elsewhere,RAKUTN 8.125 Perp/27-29s declined 0.1-0.5pts amid mixed flows withinstitutional selling vs PB buying. KIJAIJ 27s were up another 0.8pt, closed1.5pts higher WTD. SMCPM/SMCGL Perps were 0.2-0.4pt higher despitetheir weaker 1Q25 results. UPLLIN 28-30s/Perp were unchanged to 0.4pthigher. See comments below.There were two way flows in the higher yielding LGFVs such as USD namesBCAJIN 6.9 28s/QICHEN 7 27s/DFINVH 7 25s and CNH names QHCTJS728s/TZXHIG 6.95 28s. In SOE perps, COFCHK/CHPWCN Perps were up0.1pt.CMBI Credit CommentaryFixed Income Daily Market Update固定收益部市场日报 (852) 3657 6235(852) 3900 0801JerryWang(852)3761 8919CMBI Fixed Incomefis@cmbi.com.hk LastTradingDay’s Top MoversTop PerformersVNKRLE 3 1/2 11/12/29CSIPRO 5.45 07/21/25VNKRLE 3.975 11/09/27NWDEVL 4 3/4 01/23/27KIJAIJ 8 12/15/27MarcoNews Recap宏观新闻回顾Macro–S&P (+0.10%), Dow (-0.21%) and Nasdaq (+0.72%) were mixed onWednesday. UST yield was higheronWednesday, 2/5/10/30 yield at 4.05%/4.17%/4.53%/4.97%.Desk Analyst Comments分析员市场观点VNKRLE: Change recommendations on VNKRLEs to buyWe change our recommendations on VNKRLEs to buy from neutral in view of the SZ Metro’s strong supportand Vanke’s more manageable offshore debt maturities.VINKRLE’27 and ’29 moved 4pts higher WTD inresponse to the news on SZ Metro’s intention to consolidate the accounts of Vanke and the full repayment ofVNKRLE 3.15 05/12/25.Offered 83.8 and 74.5, VNKRLE 3.975 11/09/27 and VNKRLE 3 1/2 11/12/29 aretrading at YTM of 11.7% and 10.8%, we are convinced that Vanke will be a survivor of the sector and believethat VNKRLEs offer good carry and RV compared with peers such as for LNGFORs.Table 1: Bond profiles of VNKRLESecurity nameO/S (USDmn)VNKRLE 3.975 11/09/271000.0VNKRLE 3 1/2 11/12/29300.0Source: Bloomberg.Over the past few months, SZ Metro has demonstrated very strong support to Vanke’s financial viability as wellas its longer-term development.Metro.The funding cost is favorably low, at 1-yr LPR-76%, i.e. 2.34%.The terms are largely the same asthose of 3-yr loans of RMB3.3bn provided by SZ Metro announced on 29 Apr’25. Cumulatively, SZ Metro hasgranted Vanke loans totaled cRMB11.9bn since Feb’25.SZ Metro also tightened the grip on Vanke throughthe management reshuffle in Feb’25. As per media reports, SZ Metro is considering to consolidate the accountsof Vanke. This, if goes ahead, further signals SZ Metro’scommitment to support Vanke and the alignments ofinterests between SZ Metro and Vanke.Subsequent to the repayment of VNKRLE 3.15 05/12/25, the next offshore maturity of Vanke will be a small(o/s RMB510mn) Dim Sum bond of VNKRLE 3.55 06/08/25 due next month. After that, Vanke will only have 2o/s offshore bonds totaled USD1.3bn due in 2027 and 2029: VNKRLE 3.975 11/09/27 (o/s USD1bn) andVNKRLE 3 1/2 11/12/29 (o/s USD300mn). The offshore refinancing is much more manageable. While the sizeof Vanke’s secured loans increased considerably to RMB150.6bn in Dec’24 from RMB20.6bn in Dec’23 in ach