Fixed Income Daily Market Update

CMBI Credit Commentary Fixed Income Daily Market Update固定收益部市场日报 The FRN space tightened 1-2bps this morning. HYUELE 29s was3bpstighter. VNKRLE 27-29 were up by another 1.3-1.4pts. LNGFOR 28 was0.4pt higher. EHICAR 26 dropped by 1.4pts. YPCORP 29 was 0.7pt lower. Glenn Ko, CFA高志和(852) 3657 6235glennko@cmbi.com.hk DALWAN:New DALWAN 28 at 13% FPG looks fair. DALWAN 28 wasunchanged this morning. See below. Cyrena Ng, CPA吳蒨瑩(852) 3900 0801cyrenang@cmbi.com.hk SHUION:Shui On Land accepted USD295.218mn of SHUION 5.5 06/29/26in the tender offer, USD104.782mn remains outstanding. SHUION 26 was0.3pt lower while SHUION 29 was 0.3pt higher this morning. Trading desk comments交易台市场观点 Yujing Zhang张钰婧(852)3900 0830zhangyujing@cmbi.com.hk Yesterday,the new RY 6.5 05/24/86 was unchanged from RO at par amidsmall better buying by PBs and RMs. The new HKE 4.75 02/03/36 tightened8bps from RO at T+60. See our comments on27 Jan’26.Chinese IGbenchmark names held steady with modest global money buying MEITUA.Higher-beta FRESHK 28-29 squeezed another 5bps.In Chinese properties,DALWAN 28 rose 0.5pt. See comments on the new issue below. VNKRLE27-29 led the space and surged 3.1-3.2pts. Shenzhen Metro will provide athree-year loan up to RMB2.4bn (cUSD339mn) to Vanke to repay theprincipal and interest of its public bonds. Vanke has scheduled payment ofRMB864.1mnfor 22WankeMTN004 on 28 Jan’26 and RMB1.6bn for22WankeMTN005by 10 Feb’26.Media reported that holders of22wankeMTN004received the payment yesterday (28 Jan’26).In HK,NWDEVL/VDNWDL Perps rose 0.3-1.4pts.HYSAN 7.2/4.85 Perps alsoedged 0.3-0.5pt higher.CASHLD 6.25 Perp gained 0.2pt. In KR space,HYNMTR FRNs tightened another 1-3bps. LGENSO/DAESEC curves alsotightened2-5bps,while lower-beta names HYUELE/WOORIB closedunchanged. JP bank FRNs tightened 2-4bps as AMs parked cash intoSUMIBK/MIZUHO/MUFG, while 2-5yr fixed-rate tranches compressed 3-5bps. JP insurance subs were better offered from PBs across 5-10yr callableissues but the price closed unchanged. EU AT1s were softer during Londonsession, though Chinese RMs were digesting loose bonds in the front end ofthe yield curve. STANLN 7 Perp was 0.1pt lower. In SE Asian space,BBLTB/OCBCSP/UOBSP T2s were 1bp tighter to 2bps wider. IHFLIN 27-30s/SMCGL Perps were unchanged to 0.1pt higher. VEDLN 28-33s were upto 0.5pt higher. In AU space, T2 papers tightened across the board amidstrong buying flows, though FRNs tradedin mixed two-way and closedlargely unchanged. In the Middle East, papers with less than 5yr tenor andbank FRNs stayed well bid, but KSA and ARAMCO long-end notes facedheavy selling pressure and softened 0.3-0.5pt. SNBAB 6.15 Perp edged0.1pt higher. Last Trading Day’s Top Movers Marco News Recap宏观新闻回顾 Macro–S&P (-0.01%), Dow (+0.02%) and Nasdaq (+0.17%) were mixed on Wednesday. US Fed kept interestratesunchanged. UST yield was higher on Wednesday. 2/5/10/30 year yield was at 3.56%/3.83%/4.26%/4.85%. Desk Analyst Comments分析员市场观点 DALWAN: New DALWAN 28 at 13% FPG looks fair Dalian Wanda Commercial Management (DWCM) proposes to issue 2NC1.5 Reg S USD senior bond (unrated).We view the FPG of the new DALWAN 28 of 13% as fair, in view of the existing DALWAN 28 is trading at YTWof 12.6% at 98.5.As per media report, DWCM targets to issue at least USD300mn and it has obtained anoffshore debt issuance quota of USD700mn from NDRC, expiring at end-2026. The new DALWAN 28 will beissued by Wanda Properties Global, guaranteed by Wanda CommercialProperties Hong Kong Co, Wanda Real Estate Investments and Wanda Commercial Properties Overseas withDWCM as the Keepwell provider, same as the existing DALWAN 28.We view the new DALWAN 28 shouldoffer a yield pick up over the existing DALWAN 28 to compensate for the absence of amortization. The existingDALWAN 28 requires four amortization payments of 12.5% of principal each on 30 Jan’26, 13 Aug’26, 13Feb’27 and 13 Aug’27, with the remaining 50% will be paid at maturity. In addition, the new DALWAN 28includes a new covenant limiting the incurrence of additional offshore debt with final maturity, or any partial/fullrepayment, on or before 6 months after the new DALWAN 28’s maturity date. Net proceeds will be used to fund a concurrent tender offer for the existing DALWAN 28 of USD400mn at par.DWCM will accept tenders up to the aggregate principal amount of the new issue, and may prioritize (i)acceptance of tenders from holders who subscribe to the new bond and (ii) allocation of the new bond totendering holders. The tender offer expires on 4 Feb’26 4pm GMT. In Chinese properties space, our picks areCHJMAO, DALWAN, FUTLAN/FTLNHD, GRNCH, and LNGFOR. Offshore Asia New Issues (Priced) News and market color Regardingonshore primary issuances, there were 120 credit bonds issued yesterday with an amount ofRMB84bn. As for month-to-date, 1,821 credit bondswere issued with a total amount of RMB1,569bnraised, representing a 7.8% yoy increase [GEELY]Moody’s changed the outlook of Geely Automo