Fixed Income Daily Market Update
CMBI Credit Commentary Fixed Income Daily Market Update固定收益部市场日报 The Asset G3 Bond Benchmark Review 2026 Glenn Ko, CFA高志和(852) 3657 6235glennko@cmbi.com.hk This morning, we saw better selling in the new HKTGHD 36 and 10yr AU T2s,versus better buying in 3-5yr Chinese SOEs and leasing names, but theirspreads were largely unchanged. JP and European AT1s were 0.3pt lowerto 0.3pt higher. GLPSP 4.6 Perp gained 0.6pt. ACPM 4.85 Perp was 0.2pthigher. EHICAR 26-29 were 0.2-0.3pt lower. 10yr CNH issues leaked 0.3ptamidprofit taking from AMs. Cyrena Ng, CPA吳蒨瑩(852) 3900 0801cyrenang@cmbi.com.hk SMCGL:The minimum 8.75% initial distribution rate for the new USD perp isfair. See below. SOFTBK:SoftBank Group’s mobile payment unit PayPay agreed to buy a70.2%stake in T&D Financial Life Insurance in cash for JPY134.3bn(cUSD839.7mn). SOFTBKs moved-0.1pt to +0.2pt 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 BZLNZ Float 31 tightened 7bps from RO at SOFR+79,and BZLNZ 4.757 06/10/31 traded 3bps tighter from T+55. On the otherhand, the newHKTGHD 36 widened 2bps from RO at T+73 amidbetterselling.In secondary IG space,10yr LINREI/KUAISH/LGENSO papersclosed1-3bpswideramidsellingpressure.ChineseTMTsTENCNT/XIAOMI/JD were unchanged amid two-way flows. ZHOSHK 28lost another 0.6pt. In higher-yielding space, EHICAR 26 rose 8.6pts, thoughthere was no particular news to explain the gain. In Chinese properties,VNKRLE 27’ and 29’ gained 0.4-0.5pt. FUTLAN 28/FTLNHD 27-29 were0.1pt lower to 0.1pt higher. In SE Asian space, GLPSP Perps edged 0.3-0.4pt higher, while GLPSP 28/GLPCHI 29 were unchanged to 0.3pt lower.INDYIJ 29/MEDCIJ 28-30 were unchanged to 0.3pt lower. TOPTB/PTTGCPerps lost 0.1pt. In JP, SOFTBKs retraced up to 1.0pt. Japanese andEuropean AT1s leaked by 0.1-0.2pt, driven by small better selling fromLondon. Insurancesubs weakened by 0.1pt amid better selling in the longend from AMs and prop desks. In LGFV space, we continued to see thatUSD papers were under selling pressure across credit curves, whilst CNHissues remained sought after by HFs, tactical investors andcross-borderRMs. Elsewhere, long-end CNH issues retraced by 0.3-0.6pt. Last Trading Day’s Top Movers Marco News Recap宏观新闻回顾 Macro–S&P (+0.41%), Dow (+1.73%) and Nasdaq (-0.09%) were mixed on Thursday. US latest initial joblessclaims were 225k, higher than the market expectation of 214k.USTyield were lower on Thursday. 2/5/10/30year yield was at 4.05%/4.18%/4.47%/4.97%. Desk Analyst Comments分析员市场观点 SMCGL:The minimum 8.75% initial distribution rate for the new USD perp is fair San Miguel Global Power (SMCGL) plans to issue new USD perp to fund the exchangeand tender offers atpar for all of the SMCGL 5.45 Perp of USD683.5mn. We view the minimum initial distribution rate of 8.75% asfair, in view of the valuation of SMCGL 8.375 Perp (first coupon reset in Jan’31). See Table 1. The new perp’s coupon will be reset in Jun’31 to 5yrUST+initial spread+step-up margin of 250bps, and is firstcallable at par three months prior to the coupon reset date. The reset formula and step-up are the same asthose of SMCGL’s existing USD perps. The net proceeds from the newperp will be used to fund the exchangeand tender offers, any remainder may be allocated to pre-development costs of solar and hydropower energyprojects and capex related to BESS projects. Holders may split their positions and elect either exchange or tender for each portion. SMCGL will accept allbonds submitted under the par-for-par exchange, while tenders will be accepted up to the amount of netproceeds from the new issuance. The new perp will carry identical terms and fungible with the exchangedsecurities. The exchange and tender offers demonstrated once again SMCGL’s ability and track records to manage theearly redemptions of its perps proactively, supported by the company’s good access to onshore and offshorefunding channels.Recalled that SMCGL exchanged and tender-offered for SMCGL 5.7 Perp in Dec’25, andexchangedSMCGL 7 Perp and SMCGL 5.7 Perpin Jul’25.Additionally,SMCGL maintains track records ofcalling its perps on the first coupon reset dates, i.e. SMCGL 7.5 Perp in Nov’19, SMCGL 6.75 Perp in Feb’21,SMCGL 6.5 Perp in Apr’24, SMCGL 5.95 Perp in May’25, and SMCGL 7 Perp in Oct’25, and SMCGL 5.7 Perpin Jan’26. Within the SMCGL curve, we prefer SMCGL 8.125 Perp and SMCGL 8.95 Perp for better risk-return profiles inview of their higher YTC in the Asia corporate perps universe, and better trading liquidity compared to that ofSMCGL 8.375 Perp despite its higher YTC.We also have buy recommendation on PCORPM 7.35 Perp issuedby SMCGL’s affiliate Petron Corp. We consider these Philippine perps low-beta and good carry plays. Offshore Asia New Issues (Priced) News and market color Regardingonshore primary issuances, there were 101 credit bonds issued yesterday with an amount ofRMB99bn. As for Month-to-date, 343 credit bonds were issued