Fixed Income Daily Market Update

CMBI Credit Commentary Fixed Income Daily Market Update固定收益部市场日报 The new TOPTB 6.1 Perp was 0.2-0.4pt higher from RO at 99.967 thismorning on back of PBbuying. The new SOCGEN 7.125 Perp was largelyunchanged from RO at par. CDHIIN 26/CHIYBK 32/LNGFOR 32 were 0.4-0.8pt higher. EHICAR 26/VLLPM 29 were 0.6-0.7pt lower. Glenn Ko, CFA高志和(852) 3657 6235glennko@cmbi.com.hk Asia bonds issuance:Will net redemption trend to reverse in 2026? Seebelow. Cyrena Ng, CPA吳蒨瑩(852) 3900 0801cyrenang@cmbi.com.hk HSBC:HSBC agreed to pay cEUR300mn (cUSD350mn) to settle Frenchclaims over alleged dividend tax fraud. HSBCs and European AT1s wereunchanged this morning. Yujing Zhang张钰婧(852)3900 0830zhangyujing@cmbi.com.hk Trading desk comments交易台市场观点  Yesterday,Asian IG credits traded in a mixed and balanced tone, withspreads broadly moving from 2bps tighter to 2bpswider amid ongoingprimary supply digestion. In the Middle East, the new FABUH 4.299 01/13/31was up by 0.1pt amid steady two-way flows and supported by balancedinterests from private banks, lifers, banks and fast money accounts. Therecent KSA 29-56s softened by 0.3pt, with more noticeable selling pressureon the longer-duration tranches KSA 36-56s. In KR space, recent new issuesEIBKOR 29-41s leaked 1-2bps wider. TW lifers, MEITUA 35s and AustralianT2s also widened 1-2bps. In contrast, front-end beta tranches FRESHK 26-28s and BNKEA 32 tightened 6bps amid AM topping. In Chinese AMC space,we saw better-buying interests in CCAMCL 27-30s, which were up to 9bpstighter. WESCHI 28 rose 1.0pt. The Macau gaming complex were unchangedto0.2pt lower.See our comments on SJMHOL yesterday.TheNWDEVL/VDNWDL complex were 0.4pt lower to 0.2pt higher. FAEACO12.814 Perp was 0.1pt lower. Media reported that NWD-Far East ConsortiumJV got an 8-month extension for loan, borrowed by Rich FastInternationaland backed by the Pavilia Forest project in the Kai Tak. In Chinese properties,LNGFOR 27-32 led the space and rose 0.6-1.0pt. VNKRLE 27-29 were 0.1-0.5pt lower. Greater China AMs continued to buy Japanese and YankeeAT1s HSBC/NOMURA, despite relatively timid flows from London. In SE Asiaspace, TOPTB 28-30s were 1-5bps tighter, while TOPTB 43-50s traded 4-8bps wider. See comments onTOPTByesterday.GARUDA 31s/VLLPM 27-29 were unchanged to 0.1pt higher. VEDLN 28-33s were down by 0.1-0.2pt.LGFV space remained upbeat thanks to persistent deployment buying fromRMs, taking offers from HFs and tactical investors. Last Trading Day’s Top Movers Marco News Recap宏观新闻回顾 Macro–S&P (+0.01%), Dow (+0.55%) and Nasdaq (-0.44%) were mixed on Thursday. The US latest initialjobless claims was +208k, lower than the market expectation of +213k. UST yield was higheron Thursday.2/5/10/30 year yield was at 3.49%/3.74%/4.19%/4.85%. Desk Analyst Comments分析员市场观点 Asia bonds issuance:Will net redemption trend to reverse in 2026? Gross USD issuance of Asia Pacific increased 26.1% in 2025 In 2025, the gross issuance of USD bonds in Asia Pacific increased by 26.1% yoy to USD385.0bn. China(USD106.1bn), Japan (USD92.0bn), and Australia (USD51.3bn)were the top issuers. 65.9% of the grossissuance amount were IGs. By sector, financials (37.9%), sovereigns (14.6%)and real estate (10.3%, of which74% were issued under restructuring)were the top issuers. We have a hectic start in 2026. Up to 9 Jan’26, the gross issuance of USD bonds in Asia Pacific was USD22.0bn,compared to a total of USD41.0bn in the full January in 2025. Japan (USD9.4bn), South Korea (USD4.6bn) andAustralia (USD2.5bn) were the top issuers. 91.8% of the gross issuance amount wereIGs.The overall supplywas digested constructively, with most tranches, both fixed and FRN, settling 2-5 bps tighter than reoffer levels.China supply was light. Gross USD issuance of Asia ex-JP, AU & NZ increased 20.5% in 2025 In 2025, the gross issuance of USD bonds in Asia ex-JP increased by 20.5% yoy to USD237.2bn. China(USD106.1bn), South Korea (USD40.0bn) and Hong Kong (USD26.9bn) were the top issuers.55.3% of thegross issuance amount were IGs. By sector, financials (28.1%) and sovereigns (20.5%) andreal estate (16.5%,of which 75% were issued under restructuring)were the top issuers. Up to 9 Jan’26, the gross issuance of USD bonds in Asia ex-JP, AU & NZ was USD10.1bn, compared to a totalof USD26.9bn in the full January of last year.South Korea (USD4.6bn), China (USD1.7bn) and Hong Kong(USD1.2bn) were the top issuers. 83.2% of the gross issuance amount were IGs. Gross USD issuance of China increased 36.7% in 2025 In 2025, Chinese USD bonds gross issuance totaled USD106.1bn, increased36.7% yoy.IGs, HYs, andunrated contributed 45.3%, 7.7% and 47.0% of the gross issuance amount in 2025, respectively.By sector,LGFVs (28.6%), real estate (28.3%,of which 97% were issued under restructuring) and financials (27.5%) werethe top issuers. Another record breaking year for Dim Sum bonds issuance In 2025, the gross issuance was RMB914.3bn, up 9.4% yoy. Out of this, the gross issuance