Fixed Income Daily Market Update

CMBI Credit Commentary Fixed Income Daily Market Update固定收益部市场日报 The new EIBKOR 31s tightened 3bps from RO at T+27. The new SHNHAN31s tightened 2bps from RO at T+43,and SHNHAN Float 29s wereunchangedfrom RO at SOFR+58.The rest of Asian IG space wasunchanged to 2bps wider. Front-end AT1s and perps were down 0.3pt, andtheir long-end counterparts lost 0.3-0.4pt. Glenn Ko, CFA高志和(852) 3657 6235glennko@cmbi.com.hk GRNCH:Funding resilience offset FY25 earnings weakness. Maintain buyon GRNCH 8.45 02/24/28. See below. Cyrena Ng, CPA吳蒨瑩(852) 3900 0801cyrenang@cmbi.com.hk FAEACO:Far East Consortium has elected to defer the distribution onFAEACO 12.814 Perp due on 18 Apr’26 to the next payment date; agreedto sell 49.9% stakes in Ritz Carlton Hotel in Melbourne Australia forAUD58.2mn (cUSD40.1mn) to a company co-owned by Wendy Chiu andDavid Chiu. FAEACO 12.814 Perp down 13.5pts this morning. Yujing Zhang张钰婧(852)3900 0830zhangyujing@cmbi.com.hk Trading desk comments交易台市场观点 Yesterday,the market performed stronger because renewed Middle Eastceasefire hopes boosted the overall risksentiment. The new KOMRMR 31tightened 12bps from RO at T+100. The new HYNMTR 29-31s closed largelyunchanged from ROs. In secondary KR space, we saw block buyers liftedfront-end DAESEC and across the LGENSO curve, which traded 4-5bpstighter. In SE Asian space, IHFLIN 28-30 led the space and rose 1.6-2.3pts.The shares of Sammaan Capital rallied 4% on BSE after the companyannounced that Abu Dhabi-based IHC would acquire 41.5% stake in thecompany throughpreferential allotment of equity shares and warrants.BBLTB sub curve traded 2–5bps tighter on back of PB/RM buying andOCBCSPs were 1-3bps tighter. GLPSP 4.6 Perp leaked 0.8pt. Taiwaneselifers tightened 5bps, driven by better buying on NSINTW and balanced flowson FUBON. In Chinese IG space, KUAISH/MEITUA tightened 3-5bps amidbetter buying, while we saw better selling on XIAOMI. RMs were buyingZHOSHK 28, which edged 0.5pt higher. WESCHI 28-29 gained 1.9-2.1pts.FOSUNI 27-29 were 0.2-0.8pt higher. See our comments on31 Mar’26. InChinese properties, GRNCH 28 edged 0.4pt higher. See comments below.VNKRLE 27’ and 29’ gained 0.3-0.9pt. FUTLAN 28/FTLNHD 26-27 wereunchanged to 0.3pt higher, while FTLNHD 29 lost 0.2pt. We consider Seazenan outperformer in a challenging operating environment. See our commentsyesterdayon Seazen’s FY25 results. In JP space, 5-10yr bank durationpapers tightened 1-5bps, while FRNs and front-end issues remained underselling pressure. Japanese and Yankee AT1s and insurance subs closed0.3-1.0pt higher. We saw RMs reloading 1-4yr callable issues, whilst HFs andprop desks covered shorts and reloaded 7-10yr callable issues. In the MiddleEast, we saw two-way flows on ARAMCOs and long-end KSAs, which traded0.1-0.4pt higher. LGFVs nonetheless had a relatively quiet session, and thesector stayed stable across the credit curves. Last Trading Day’s Top Movers Marco News Recap宏观新闻回顾 Macro–S&P (+0.72%), Dow (+0.48%) and Nasdaq (+1.16%) werehigheron Wednesday. US Mar’26 ADPnonfarm employment change was +62k, higher than the market expectation of +41k. S&P Global ManufacturingPMI Mar’26 was 52.3, lower than the market expectation of 52.4. ISM Manufacturing PMI/Prices Mar’26 was52.7/78.3, higherthan the market expectation of 52.3/74.0, respectively. UST yield was higher on Wednesday.2/5/10/30 year yield was at 3.81%/3.97%/4.33%/4.91%. Desk Analyst Comments分析员市场观点 GRNCH: Funding resilience offset FY25 earnings weakness Despite the weaker FY25 profit, we take comfort from Greentown’s improved debt structure, manageable debtmaturity profile, and smooth funding access, thanks partly to its state-ownership. Hence, we maintain buy onGRNCH 8.45 02/24/28 and consider the bond a low-beta and good carry play. At 101.6, GRNCH 8.45 02/24/28is trading at YTM of 7.5%. Despitea challenging macro backdrop, Greentown’s operating performance remains better than more of itspeers. Greentown’s FY25 revenue fell 2.3% yoy to RMB155.0bn, with non-property sales revenue down 32.6%yoy to RMB7.8bn, while property sales revenue was broadly flat. The recognized GFA was lower, yet therecognized ASP was higher attributable to the projects in Shanghai and Hangzhou accounted for higherpercentage of sales. Gross profit down 8.7% yoy to RMB18.7bn, with GPM narrowed to 11.9% from 12.8% inFY24.PBT declined 31% yoy to RMB4.9bn, due to lower GP, lower share of results from JVs and associatecompanies as management accelerated long-term inventory destocking, and assets impairment losses,partially offset by lower SG&A under cost efficiency measures. Profit attributable to the owners was down by96% to RMB71mn, in line with the profit warning issued in mid-Mar’26, reflecting greater minority attributionfrom projects where Greentown held lower equity interests. In FY25, Greentown’s contract salesfrom self-invested projects declined 11% yoy to RMB153.4bn, translatinginto a sell-through rate of c77%. As of Dec’25, self-inves