Fixed Income Daily Market Update

CMBI Credit Commentary Fixed Income Daily Market Update固定收益部市场日报 This morning, Asian IG names TW lifers/MEITUA/AACTEC/LENOVO tradedup to 5bps tighter amid better buying. We saw PBs buying European AT1sand AMs buying non-LGFV CNH issues. We view the FV of the new BNKEA6NC5 to be T+145-150bps. BNKEA T2s were unchanged. See below. Glenn Ko, CFA高志和(852) 3657 6235glennko@cmbi.com.hk Cyrena Ng, CPA吳蒨瑩(852) 3900 0801cyrenang@cmbi.com.hk RESLIF:FY25 net income jumped 47% yoy on robust growth in premiumincome. Maintain buy on RESLIF 6.875 Perp, which was largely unchangedthis morning amid light profit taking. See below. Trading desk comments交易台市场观点 Yujing Zhang张钰婧(852)3900 0830zhangyujing@cmbi.com.hk Yesterday,in the Middle East, TAQAUH 49-51 dropped 0.5-0.7pt.TW liferstightened 1-3bps driven by robust demand forCATLIF 41, SHIKON 35, andNSINTW41. MEITUA 30-32s/KUAISH 36 tightened 1-3bps.In HK, theNWDEVL/VDNWDL complex traded 0.3pt lower to 0.3pt higher. NWD deniedthe media reports that the company had entered into any agreement to divestits 50% stake in certain hotel assets in HK, though it was approached bypotentialbuyers of those assets.The Macau gaming complexSJMHOL/MGMCHI/MPEL/SANLTD/STCITY/WYNMAC were unchanged to0.1pt lower. MGMCHI circulated 6.5% IPT for the new 7NC3 issue ofUSD750mn. See comments on the new issue below. In Chinese properties,VNKRLE 27’ and 29’ were unchanged to 0.2pt lower. LNGFOR 27-32 were0.1pt lower to 0.1pt higher. In SE Asian space,BBLTB T2 sub paperstightened 2–3bps.GARUDA 31 was 0.5pt weaker. MEDCIJ 26-30 closed0.1ptlower to 0.1pt higher. See our commentsyesterdayon Medco Energi1Q26 results. INDYIJ 29 leaked 0.2pt. Indika Energy tapped USD100mnINDYIJ 29 at par, and the outstanding amount increased to USD555mn.VEDLN 28-33s/GENTMKs were 0.1pt lower to 0.1pt higher. SMCGL Perpswere unchanged to 0.3pt higher. GLPSPs/GLPCHI were 0.2-0.5pt firmer.InKR space, front-end corporate issues LGENSO/HYNMTR/HYUELE traded1-3bps tighter amid better buying from PBs and AMs, while the belly of thecurve stayed flat. In JP space, the recent new issues MIZUHO 31 and NIPLIF31 were 1-2bps tighter driven by PB buyers.European AT1s traded in mixedbutmodest flows from Asia. Overall, the flowswere skewed to small betterselling in the long end, as well as largely balanced two-way in the front endand the belly.HSBC 6.75 Perp/HSBC 7 Perp edged 0.1-0.2pt higher, whileSTANLN 7 Perp lost 0.1pt.In LGFV space, we saw light two-way flows infront-end papers. Last Trading Day’s Top Movers Marco News Recap宏观新闻回顾 Macro–S&P (+0.81%), Dow (+0.73%) and Nasdaq (+1.03%) were higher on Tuesday. US JOLTS Job OpeningsMar’26 was 6.866mn, higher than the market expectation of 6.860mn. US Apr’26 S&P Global Services PMI was51.0, lower than the market expectation of 51.3.UST yield was lower on Tuesday. 2/5/10/30 year yield was at3.93%/4.08%/4.43%/4.98%. Desk Analyst Comments分析员市场观点 BNKEA: FV for the new 6NC5 to be T+145-150bps We view the FV of the new BNKEA 32 to be T+145-150bps vs IPT at T+175bps, taking cues from the valuationsof BNKEA 5.12507/07/28, BNKEA 4.875 04/22/32 and BNKEA 6.75 06/27/34, adjusted for different in paymentrank and tenor. The issue size is USD500mn. We view the FV of the new BNKEA 32 to beT+145-150bps vs IPT at T+175bps, taking cues from BNKEA5.125 07/07/28, BNKEA 4.875 04/22/32 and BNKEA 6.75 06/27/34, adjusted for different in payment rank andtenor. The issue size is USD500mn. BEA is one of the leading bank in Hong Kong with total assets of HKD920bn as of Dec’25. In FY25, operatingincome up 0.2% yoy to HKD21.0bn as driven by robust growth in non-interest income of 28% to HKD5.7bn.This was partially by the weaker net income of 7.3% yoy decrease to HKD15.3bn from NIM compression of19bps to 1.9%. PPOP down 1.3% yoy to HKD11.2bn. Impairment losses rose 2.6% yoy to HKD5.6bn. Moreover,BEA recorded non-recurring loss of HKD723mn from valuation losses on IPs and share of loss of an associateoperating in Chinese mainland of HKD551mn, totaled HKD1.3bn. As a result, the attributable profit declined24.0% yoy to HKD3.5bn. ROAA and ROAE down to 0.4% and 3.1% in FY25, from 0.5% and 4.0% in FY24,respectively. On asset quality, BEA’s credit cost up to 104bps in FY25 from 98bps in FY24, due tohigher credit costs in HK.As of Dec’25, BEA’s impaired loan ratio improved slightly to 2.69% from 2.72% as of Dec’24, while the coverageratio increased to 99.1% from 83.1%. BEA has been actively mitigating the risk stemming from CRE by furtherloan portfolio diversification such that CRE loan to total loan down to 18% as of Dec’25 from 23% as of Dec’24.We also take some comfort on BEA’s solid capital adequacy to cushion the stress from asset quality, asdemonstrated by 7 pct pts increase in CET1 ratio to 24.7% as of Dec’25 from 17.7% as of Dec’24, benefittingfrom the implementation of the Basel III final reform on 1 Jan’25, and sit comfortably above the regulatoryminimum requirement of c7.3%. CAR further increased to 28.