Fixed Income Daily Market Update

CMBI Credit Commentary Fixed Income Daily Market Update固定收益部市场日报 The new KORAIR 4.125 04/21/29 tightened 6bps from RO at T+40. The newNHNCOR 4.375 04/21/31 tightened 5bps from RO at T+60. SOFTBK 29-65swere down another 0.3-0.8pt. LASUDE 26 was 0.6pt lower. QDJZWD 7.906/04/27 was down 0.3pt amid better selling. Glenn Ko, CFA高志和(852) 3657 6235glennko@cmbi.com.hk BBNIIJ:FV of the new BBNIIJ Perpto be low 7% vs IPT at 7.5%. Maintainbuy on BBNIIJ 4.3 Perp, which rose 1.5pts yesterday and up 0.7pt thismorning. See below. Cyrena Ng, CPA吳蒨瑩(852) 3900 0801cyrenang@cmbi.com.hk China Economy:Trade surplus to narrow. CMBI expects China’s goodsexport growth may moderate from 5.2% in 2025 to around 4.0%in 2026,while imports may rebound from-0.5% to around 8%; USD/RMB may stayfirm around 6.8 in 2Q26 before edging back toward 6.9 by year-end. Seecomments from CMBI economic research below. Yujing Zhang张钰婧(852)3900 0830zhangyujing@cmbi.com.hk Trading desk comments交易台市场观点  Yesterday,EHICAR 26 rose 1.8pts, while EHICAR 27 edged 0.1pt higher. Asper media report, eHi plans to apply for a new NDRC quota to address theremaining USD97.064mn EHICAR 7 09/21/26 and launch a second round ofexchange offer. See our commentsyesterday.WESCHI 28-29 were 1.1-1.3pts firmer. InChinese IG space, KUAISH/MEITUA tightened 1-3bps. Wesaw global RMs topping beta names FRESHK and ZHOSHK. ZHOSHK 28edged 0.2pt higher. TW lifers tightened 2-5bps on continued Chinese RMbuying. In HK, T2 names BNKEA/SHCMBK/NANYAN/DAHSIN traded 5bpstighter.LINREI and MTRC 26-55 tightened 2-4bps.MTRC 5.625Perps/MTRC4.875 Perp were 0.2pt higher.The NWDEVL/VDNWDLcomplex gained 0.1-1.9pts. In Chinese properties, VNKRLE 27’ and 29’gained 1.3-1.4pts. LNGFOR 27-32 were unchanged to 0.2pt higher. KRcorporate IG credits tightened another 1-4bps, led by HYUELE and HYNMTR.Wesaw small profit-taking from PBs after the recent rally onPOHANG/PKX/LGENSO.Bank-guaranteed names SKBTAM/MOMPER/LOTCOR were also squeezed to 1-3bps tighter. JP IG bonds tightened 2-5bps,led by the recent new issues MIZUHO/MUFG.SOFTBK 29-65sdropped 0.6-1.1pts.SOFTBK announced IPTs on six USD/EUR seniorunsecured bonds. The proceeds will be used to redeem some of SoftBank’sexisting bonds and refinance bridge loans to fund investmentin OpenAI.Japanese and Yankee AT1s and insurance subs edged another 0.4-0.5pthigher. RMs were buying front end of the curve while PBs buying the belly.Australian Yankee bonds tightened 2-5bps, though some front-end profit-taking emerged. In SE Asian space, OCBCSP 35-36s traded 1-2bps tighter,and the BBLTB sub curve closed 2-4bps tighter. BBNIIJ 4.3 Perp was 1.5ptsfirmer. Bank Negara Indonesia announced tender offer for BBNIIJ 4.3 Perpand concurrent new USD Perp issue. See comments below.SMCGL Perpswere 0.3-1.1pts higher. GLPSPs/VEDLN 28-33s/ReNew Energy complexgained 0.1-0.5pt. In the Middle East, most names closed 0.4-0.8pt higher. In LGFV space, the new issue BCDHGR 6.3 04/20/29 rose 0.9pt from RO at par.We saw overall better buyingacross CNH and USD papers. Last Trading Day’s Top Movers Marco News Recap宏观新闻回顾 Macro–S&P (+1.18%), Dow (+0.66%) and Nasdaq (+1.96%) were higheron Tuesday.US Mar’26 PPI was+0.5% mom, lower than the market expectation of +1.1% mom.UST yield was lower onTuesday. 2/5/10/30 yearyield was at 3.76%/3.87%/4.26%/4.87%. Desk Analyst Comments分析员市场观点 BBNIIJ:FV of the new BBNIIJ Perp to be low 7% vs IPT at 7.5% Bank Negara Indonesia (BNI) proposes to issue USD PerpNC5.5 (Moody’s: Ba3) to fund the concurrent tenderoffer for BBNIIJ 4.3 Perp. We view the FV of the newBBNIIJ Perp to be low 7% vs IPT at 7.5%, in view of thevaluation of its BBNIIJ 4.3 Perp (first call in Mar’27) prior to the announcement of tender offer and concurrentnew issue, compared with its global peers with similar first call date and adjusted forrating differential. BNI plans to raise at least USD500mn, to address c83% of the outstanding amount of BBNIIJ 4.3 Perp ofUSD600mn. BNI may give priority to the holders of BBNIIJ 4.3 Perp in the new bond allocation if they havevalidly tendered or havegiven a firm intention to tender. The tender offer is subject to the successful completionof the new issue. The new BBNIIJ PerpNC5.5 are contractual, non-viability preferred securities. It will be first callable in year 5.5and every distribution payment date thereafter, subject to OJK approval. The distribution will be reset on thefirst reset date and every 5 years thereafter to 5yrUST+initial spread. Coupons could be cancelled on a non-cumulative basis at BNI's discretion, and on a mandatory basis subject to the availability of distributable funds,regulatory capital requirements and regulatory discretion. The principal amount of the perp could also be partially or fully written down if: (1) the bank's CET 1 ratio is ator below 5.125%; (2) a competent authority plans to rescue the bank by injecting capital; (3) the regulatorinstructs the bank to do so on grounds of non-viability. Furthermore,