固定收益每日市场更新

CMBI Credit Commentary Fixed Income Daily Market Update固定收益部市场日报 This morning, there were two-way flows on the new dim sum ZHHFGR 28and JDZHSI 28 around their reoffered price. We saw profit-taking on 10yrAsiaIGnames.JPfloaterswidened1-2bpsandTWlifersFUBON/NSINTW/CATLIF/SHIKON widened 5bps. Glenn Ko, CFA高志和(852) 3657 6235glennko@cmbi.com.hk FAEACO:Maintain buy on FAEACO 12.814 Perp, which rose c20pts lastweek and up 0.2pt this morning. See below. Cyrena Ng, CPA吳蒨瑩(852) 3900 0801cyrenang@cmbi.com.hk VNKRLE:Vanke replaced Xin Jie with Huang Liping as chairman.Theimpact to Vanke should be containedas the new chairman is also a memberofsenior management from SZ Metro. VNKRLE 29 was 0.2pt higher thismorning. Yujing Zhang张钰婧(852)3900 0830zhangyujing@cmbi.com.hk Trading desk comments交易台市场观点 LastFriday was a weaker session against a risk-off macro backdrop.MEITUA curve was 1-2bps wider even though there was onshore buying. TWlifersFUBON35/NSINTW 34-41swidened 1-2bps. EHICAR 26-27s retraced1.5pts.FAEACO 12.814 Perp/MTRC perps lowered 0.2pt.See ourcomments on FAEACObelow.NWDEVLs decreased by 0.1-1.1pts.InChinese properties, VNKRLE 27-29s were 0.2-0.3pt higher.In Korea space,DAESEC 28s and HYUELE/HYNMTR/LGENSO curves widened 1-3bpsamid better-selling from AMs. In Japan space, we saw two-way flows on FRNpapers from Chinese accounts. NORBK 30-35s widened 5-10bps in themorning against the headlines that a JV between Norinchukin Bank andMitsui & Co. faced USD1.75bn of exposure to bankrupt First Brands, whileNORBK 30-35s recovered and closed only 5bps wider with Chinese AMsbuying in the afternoon. Japanese long-end insurance hybrids were 0.1-0.3ptlower. There was support for other insurance hybrids names like ALVGR andclosed unchanged. Yankee AT1s UBS/BNP/ACAFP/HSBC/STANLN weredown by 0.3-0.5pt. We saw better-selling from Asian RMs/AMs and mixedflows from PBs in both Yankee AT1s and insurance hybrids. In SoutheastAsia, OCBCSP35 widened 2bps. PBs were buying BBLTB, but its sub curveclosed 1-3bps wider. SMCGL Perps were unchanged to 0.1pt higher. InAustralia space, PBs sold bank FRNs. In LGFV space, we saw RMs buyingonshore-AAA-guaranteed papers, and tactical investors buying names downthe credit curve. Last Trading Day’s Top Movers Marco News Recap宏观新闻回顾 Macro–S&P (-2.71%), Dow (-1.90%) and Nasdaq(-3.56%) were lower on last Friday. Trump said he wouldimpose an additional 100% tariff on imports from China, as well as export controls on critical US-made software.UST yield was lower on last Friday. 2/5/10/30 yield was at 3.52%/3.65%/4.05%/4.63%. Desk Analyst Comments分析员市场观点 FAEACO: Maintain buy on FAEACO 12.814 Perp We maintain buy on FAEACO 12.814 Perp as we believe that the perp continues to offer a decent risk-returnprofile with good cash yield.Since 3 Oct’25, the last day for FEC to issue notice for deferral of coupon paymenton 18 Oct’25, FAEACO 12.814 PERP moved 20pts higher. At 62.8, the perp offers a cash yield of c20%. Therewere talks on LME, however, we are not convinced that an unfriendly LME such as principal haircut or exchangeinto a dated bond with significantly lower coupon rate can be pushed through.Indeed, we believe the optimalway for FEC to manage its interest expenses and adj. net gearing ratio is to buy back the perp at market price.That means FEC has to continue to pay the coupon on the perp. As we discussed in our comments:FAEACO: Revisit the knowns and unknownsdated 4 Jul’25, we see signsof stabilization of FEC’s operating performance and take comfort with its improved adj. net gearing ratio (to67.6% in Mar’25 vs. 68.8% in Sep’24 and 68.1% in Mar’24). We expect the solid cash receipt fromdeliveriesof property developments in the UK and Australia to offer FEC adequate liquidity to continue the couponpayments and start the partial call on the perp. FEC’s attributable GDV for projects to be completed by Mar’26 is HKD12bn and HKD5.1bn was pre-sold. Weexpect a net cash inflow of HKD2bn after settlement of construction loans even on a conservative scenario.We also expect to see proceeds of cHKD400mn from sales of Hornsey hotel and town hall expected to becompleted early next year. Themajor moving part is the attitude of banks on FEC’s refinancing exercises, evenfor the supposedly straight-forward rollover of secured financing. Offshore Asia New Issues (Priced) Offshore Asia New Issues (Pipeline) News and market color Regardingonshore primary issuances, there were 36 credit bonds issued on last Friday with an amountof RMB37bn. As for month-to-date, 73 credit bonds were issued with a total amount of RMB74bn raised,representing a 34% yoy decrease Indonesia’s sovereign wealth fund Danantara waste-to-energy project worth IDR91tn (cUSD5.5bn)attracted 192 domestic and overseas companies[COGO]China Overseas Grand Oceans to early redeem COGO 2.45 02/09/26 of USD512mn in full atpar[CWAHK]China Water Affairs proposes to issue USD senior bond to repay CWAHK 4.85 05/18/26 ofUSD350mn[INCLEN]