Fixed Income Daily Market Update

CMBI Credit Commentary Fixed Income Daily Market Update固定收益部市场日报 The new TERUMO 4.488 04/28/31 tightened 4bps from RO at T+60 thismorning. Thai IG credits such as BBLTB/PTTGC tightened 5-10bps afterMoody’s surprisedmove to change Thai sovereign rating outlook to stablefrom negative and affirmed Baa1 rating. We saw better buying on front-endHYUELEs.GARUDA31/VLLPM29were0.5-0.8pthigher.GLPSPs/GLPCHI 29 were 0.8-1.1pts lower. Glenn Ko, CFA高志和(852) 3657 6235glennko@cmbi.com.hk Cyrena Ng, CPA吳蒨瑩(852) 3900 0801cyrenang@cmbi.com.hk VNKRLE:The 3rd extension of onshore bond maturity. VNKRLE 27’ and 29’edged 0.1-0.6pt higher this morning. See below. NNCOMM:Nanning Communications Investment terminated consentsolicitation for outstanding USD300mn NNCOMM 7.3 04/30/27. NNCOMM27 was unchanged 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 new KOBCOP Float 04/27/29 tightened 5bps from RO atSOFR+65. The recent new issueNHNCOR 31s were 2bps tighter amidbalancedtwo-way flows.In Chinese TMT space,5-10yr MEITUA/KUAISH/LENOVOpapers tightened 2-5bps amid active better buying.ZHOSHK 28 was 0.1pt higher. The recent new issue EVRGTT 5.25 04/23/29was 3bps tighter, while Taiwanese lifers closed largely unchanged. In HK,FAEACO 12.814 Perp gained another 0.9pt. See our thoughts on FECdistribution deferral and potential LMEyesterday. In Chinese properties,FTLNHD 27 was 1.0pt firmer. LNGFOR 27-32 closed 0.1-0.3pt higher.VNKRLE 27’ and 29’ lost 0.1-0.8pt. Vanke received onshore bond holders’approval for extending repayment of the 60% of the principal amount, i.e.RMB1.2bn for a year, with 3.11% coupon unchanged. See comments below.In SE Asian space, we saw modest selling in belly papers of senior banksAHBMK/EXIMBK, while bank T2s remained broadly unchanged. GLPSPs/GLPCHI lowered 0.3-0.6pt. VEDLN 28-33s and the ReNew Energy complexwere unchanged to 0.1pt higher.In JP space, SOFTBKs gained 0.3-1.0pt.Japanese and Yankee AT1s and insurance subs traded 0.1-0.4pt higher, ledby long-end issues amid short-covering activities. In LGFV space, the new SHUGRP 29 traded up to 1.0pt lower during the dayfrom RO at par amid two-way flows, and eventually closed 0.4pt lower fromRO. See our comments on FV of the bond on20 Apr’26. Meanwhile, we sawtwo-way exchanges on QDJZWD USD issues: RMs were trimming risks andselling the bonds to tactical buyers. As for the rest of the space,higher-yielding CNH issues remained largely sought after by RMs whereas USDissues encountered sporadic demand. Last Trading Day’s Top Movers Marco News Recap宏观新闻回顾 Macro–S&P (-0.63%), Dow (-0.59%) and Nasdaq (-0.59%) were lower on Tuesday. PresidentDonald Trumpannounced he was extending a ceasefire with Iran indefinitely, even as plans for a fresh round of talks betweenthe two countries fell apart. US Mar’26 Retail Sales increased by 1.7% mom, higher than the market expectationof an 1.4% mom increase. US Mar’26 Core Retail Sales was up by 1.9% mom, higher than the forecast of an1.4% mom growth.UST yield bear flattened on Tuesday. 2/5/10/30 year yield was at 3.78%/3.91%/4.30%/4.89%. Desk Analyst Comments分析员市场观点 VNKRLE:3rd onshore bond maturity extension Yesterday, Vanke announced that it secured the requisite consent from holders of onshore bond VANKE 3.1104/23/26 (issue size: RMB2bn) on 17 Apr’26 for an upfront repayment of 40% and extend maturity of theremaining 60% for 1 year while maintain coupon rate unchanged at 3.11%.This is the 3rd onshore bondmaturity extension since Dec’25. Recalled that in Dec’25, Vanke made 40% upfront repayments and extendedthe remaining 60% for 1 year for onshore bonds VANKE 3 12/15/26 (issue size: RMB2bn) and VANKE 312/15/26 VANKE 3 12/28/26 (issue size: RMB3.7bn).Additionally, Vanke paid 40% of the put and extendedthe 60% of the put for 1year for onshore bond VANKE 3.98 01/22/28 (issue size: RMB1.1bn) in Jan’26.The40% upfront repayment and 60% 1-yr extension appear to be the near-term template for dealing with onshorebond maturities and redemptions.Vanke’s debtmaturity profile remain lumpy without a holistic debtrestructuring. Subsequent to the maturity and put extensions, Vanke still face onshore bond maturities totaledRMB13.4bn and put redemptions totaled RMB1.3bn for the rest of 2026.Without fresh equity injections orother financial support from SZ Metro, Vanke may have to continue to kick the can down the road. At 41.2 and39.1, the remaining 2 USD bonds VNKRLE 3.975 11/09/27 VNKRLE 3 1/2 11/12/29 have priced in a highchance of notably longer maturity extension than thoseof onshore bonds. We maintain hold recommendationson the 2 USD bonds. Offshore Asia New Issues (Priced) Newsand market color Regardingonshore primary issuances, there were 132 credit bonds issued yesterday with an amountofRMB106bn. As for month-to-date, 1,489 credit bonds were issued with a total amount of RMB1,483bnraised, representing a 17.2% yoy increase Moody’s changed the outlook of Thailan