Fixed Income Daily Market Update

CMBI Credit Commentary Fixed Income Daily Market Update固定收益部市场日报 Asian IG space widened 5-7bps overall this morning. Yankee and JapaneseAT1s and insurance subs were marked down by 1.0pt. GLPSP Perpsdropped 2.0-2.2pts. MINAU 28 edged 0.5pt higher. Glenn Ko, CFA高志和(852) 3657 6235glennko@cmbi.com.hk FTLNHD/FUTLAN:Near-term refinancing pressure further mitigated by thenew issue and tender offers. See below. Cyrena Ng, CPA吳蒨瑩(852) 3900 0801cyrenang@cmbi.com.hk PTTGC:Fitch revised the outlook of PTT Global Chemical to negative fromstable on risk of PTTGC's EBITDA net leverage remaining above 4.0x over2026-27; BBB-rating affirmed. PTTGC 31-52/Perps were 0.5-2.0pts lowerlast Friday, and PTTGC Perps were 1.2-1.6pts lower this morning. Yujing Zhang张钰婧(852)3900 0830zhangyujing@cmbi.com.hk Trading desk comments交易台市场观点  Last Friday,the new HSBC Float 03/10/32 initially tightened 10bps from ROat SOFR+121, and later widened 3-4bps. LINREI/HKE and China TMTs ingeneral marked another 1-4bps tighter. NWDEVLs gained 0.4-2.5pts, andVDNWDLs edged 0.3-0.4pt higher. On the other hand, HYSANs and MTRCPerps were unchanged to 0.3pt lower. The Macau gaming complex were0.2pt lower to 0.1pt higher. See our comments on SJMHolding’s FY25 and4Q25 resultslast Friday. LUSOIB 34 leaked 1.2pts. WESCHI 28-29 were 0.2-0.3pt lower. In Chinese properties, VNKRLE 27’ and 29’ rose 4.0-4.3pts.Media reported that the Shenzhen municipal government has made progressregarding its proposed support package for Vanke and received feedbackfrom Beijing. FUTLAN 28/FTLNHD 26-29 gained 0.1-0.3pt. Seazen acceptedUSD167.978mn of FTLNHD 4 1/2 05/02/26 and USD65.973mn of FTLNHD11.88 09/30/27 in the tender offers, and USD236.022mn and USD94.027mnremains outstanding, respectively. See comments below. YLLGSP 26 closed0.1pthigher.See our comments on 5 Mar’26.LNGFOR 27-32 wereunchanged to 0.6pt higher.On Fri night, Longfor issued profit warning thatits profit will plunge 90.4% in FY25 amid lower revenuefrom the propertydevelopment segment. JP/KR/AU IG credits were 1-2bps wider in general.We saw small selling on 4-6yr JP/AU financial FRNs from AM accounts.RESLIF 6.875 Perp/NOMURA 7 Perp were down by 0.2-0.3pt. As for YankeeAT1s, SOCGEN 8.5 Perp/SANTAN8 Perp lost 0.9pt. In SE Asian space,PTTGC Perps leaked 0.5-0.7pt, and PTTGC 31-52 widened c10bps. Fitchrevised PTT Global Chemical’s outlook to negative from stable due to the riskof PTTGC's EBITDA net leverage remaining above 4x over 2026-27, withEBITDA net leverage increasing to around 10x in 2025. TOPTB 6.1 Perp lost0.4pt. PCORPM Perps/VEDLN 28-33s were unchanged to 0.2pt higher.VLLPM 27-29 gained 0.2-0.4pt. In contrast, SMCGL Perps were unchangedto 0.2pt lower. Last Trading Day’s Top Movers Marco News Recap宏观新闻回顾 Macro–S&P (-1.33%), Dow (-0.95%) and Nasdaq (-1.59%) were lower on last Friday. US Feb’26 nonfarmpayrolls was-92k, lower than the market expectation of +58k. US Feb’26 unemployment rate was 4.4%, higherthan the market expectation of 4.3%. 10/30 year UST yield was higher on Thursday. 2/5/10/30 year yield was at3.56%/3.72%/4.15%/4.77%. Desk Analyst Comments分析员市场观点 FTLNHD/FUTLAN:Near-term refinancing pressure mitigated by the new issue and tender offers Subsequent to the issuance of USD355mnFTLNHD 11.8 03/09/29,Seazen accepted USD167.978mn ofFTLNHD 4.5 05/02/26 and USD65.973mn of FTLNHD 11.88 09/30/27 in the tenderoffers, totaled USD234.0mn.See Table 1. Payment expected to be on or about 10 Mar’26. The tender offer for FTLNHD 26 helps alleviateSeazen’s near-term refinancing pressure.We expect Seazen to repay the FTLNHD 26 of USD236.022mn infull at maturity, partly funded by the remaining proceeds from FTLNHD 11.8 03/09/29 of cUSD120mn as wellasUSD60.4mn raised through a private share placement in Feb’26.Its maturity profile is more even moremanageable after new issue and concurrent tender offers.We maintain buy on FUTLAN/FTLNHDs for theirgood carry and manageable refinancing risk. Seazen continues to demonstrate notably better access to funding channels than most of its non-state-ownedpeers. In addition to the latest USD355mn and small share placement of USD60.4mn, It raised USD510mn torefinance USD bonds totaled USD600mn maturing in Jul’ and Oct’25. Seazen also raised CBICL-guaranteedbonds totaled RMB3.65bn in 2025 for refinancing at a weighted average coupon of 3.46%. We also take comfortfrom the financial flexibility offered from its IPs and its access to various funding channels. Furthermore, Seazenholds unencumbered shopping malls valued at cRMB15bn as of Jun’25. Assuming a 40% LTV ratio, theunencumbered shopping malls could translate into secured borrowing headroom of cUSD1bn. Last Fri, Seazen announced that it has commenced the application for public issuance of commercial REITsusing its commercial real estate projects i.e. Changzhou Tianning Wuyue Plaza Project and Nantong QidongWuyue Plaza Project, as underlying assets. The commercial REITs will be listed on SSE and Seazen intendst