Fixed Income Daily Market Update
CMBI Credit Commentary Fixed Income Daily Market Update固定收益部市场日报 The new NOMURA Float 29-31 tightened 5-7bps from ROs, whilefixed-rateNOMURA 29-36s were unchanged from ROs. The new LYURBN 29 leaked1.0pt from RO at par. The new CNH SIASP 31 edged 0.5pt higher from ROat par. See our commentsyesterday. The new CNH HNYUZI 29 hoveredaround RO at par. Cyrena Ng, CPA吳蒨瑩(852) 3900 0801cyrenang@cmbi.com.hk Jerry Wang王世超(852) 3761 8919jerrywang@cmbi.com.hk SNE:We consider the pricing of the new SNE 31-36 to be tight, whichwidened 2-3bps this morning from RO at T+40 and T+60, respectively. Seebelow. Yujing Zhang张钰婧(852)3900 0830zhangyujing@cmbi.com.hk BABA:Media reported Alibaba Group is planning to sell its gaming brandLingxiGames for up to RMB9bn(cUSD1.3bn)BABAs were largelyunchanged this morning amid better selling. Trading desk comments交易台市场观点 Yesterday,the new NIPDES 31s tightened 7bps from RO at T+58.The newNHSECS 29s/31s widened 5-7bps from initial pricing at T+105 and T+110,respectively, amid thin liquidity. The new POINTL 31s traded 8bps wider fromRO at T+90, while the existing POSCO complex closed unchanged to 3bpswider. As for the other KR names, DAESECs/HANFGIs widened 5bps.SKONKR/NHNCOR/HIGHWY were 2-6bps wider amid Chinese AM selling.In Chinese IG space, 5-10yr TMT names TENCNT/MEITUA/KUAISH traded3-5bps wider on the back of heavy selling. HK T2s/HKE 36s/TW lifers alsowidened 2-5bps. As for higher-yielding issues, the Macau gaming complexeswere up to 0.5pt lower. WESCHI 28-29 were down 1.2-1.3pts. In Chineseproperties,VNKRLE 27-29/LNGFOR 28-32/FUTLAN 28/FTLNHD 27-29traded 0.1-0.3pt lower. In SE Asia, VLLPM 27-29 continued to lead the space and rose 5.9-7.1pts.Therewere market chatters on Vista Land is considering to launch a creditor-friendly LME to refinance VLLPM 27 and remove a negative-pledge covenanton its onshore debt,but the company did not respond to the matter.ACENPM 4 Perp gained 0.6pt. On the other hand, GLPSPs/GLPCHI lost 0.8-2.4pts. TOPTB/PTTGC Perps were down 0.2-0.4pt.HDFCB 31s traded 2bpswider. BBLTB front-end subs tightened 3-5bps amid better buying.Elsewhere,European AT1s and insurance hybrids were marked 0.1-0.3pt lower. In LGFVspace, we saw better selling from AMs. CMBI Fixed Incomefis@cmbi.com.hk Last Trading Day’s Top Movers Marco News Recap宏观新闻回顾 Macro–S&P (-1.44%), Dow (-0.09%) and Nasdaq (-2.21%) were lower on Tuesday. US Jun’26 S&P GlobalServices/Manufacturing PMI was 51.3/55.7, higher than the market expectation of 51.1/54.6, respectively.USTyield were lower on Tuesday. 2/5/10/30 year yield was at 4.16%/4.27%/4.50%/4.94%. Desk Analyst Comments分析员市场观点 SNE:We consider the pricing of the new SNE 31-36 to be tight Yesterday, Sony Group (SNE) priced new 5yr and 10yr senior unsecured USD bonds (A2/A+/-) at T+40bpsand T+60bps, respectively, tightened 30bps from IPT at T+70bps and T+90bps.Both tranches are sized atUSD500mn. We consider the pricing of the new SNE 31-36 to be tight, taking cues of the valuations of its JPpeers such as NIPDES 31 (A2/A+/-) and MITCO 31-36s (A2/A/-). This is SNE’s first USD issue in 25 years,with thelast issue in 2001. SNE manufactures and distributes electronics products and provides related solutions, operating across fivesegments: Gaming & Network Services (G&NS), Music, Pictures, Entertainment, Technology & Services(ET&S), and Imaging &Sensing Solutions. In FY25 (ended 31 Mar’26), SNE’s revenue rose 4% yoy to a recordhigh at JPY12.5tn, with G&NS and ET&S contributed c60% of revenue. Operating income increased 13% yoyto JPY1.4tn, lifting the operating margin to 11.6% from 10.6% in FY24. Operating cash flow was broadly flat atJPY2.0tn. Looking into FY26 (ended 31 Mar’27), SNE guided for a modest 1% yoy decline in revenue to JPY12.3tn, mainlydriven by lower hardware sales, partially offset by higher sales of first-party game softwarein G&NS segment.Operating income is projected to increase by 11% yoy to JPY1.6tn, partly due to the absence of impairmentlosses on Bungie totaled JPY120.1bn in FY25.Excluding this one-off loss, operating income should remainbroadly flat yoy in FY26.SNE’s stable profit-generating capability should continue to support its credit profile,in our view. SNE’s liquidity position is ample. As of 31 Mar’26, SNE was in a net cash position of JPY539bn, with cash andcash equivalents of JPY2.2tn against totaldebt of JPY1.7tn, thatshould provide a buffer against cyclicality inhardware. In Mar’26, S&P upgraded SNE by one notch to A+ from A with a stable outlook, reflecting theenhanced earnings profile as the portfolio shifts toward entertainment businesses. Offshore Asia New Issues (Priced) News and market color Regardingonshore primary issuances, there were 173 credit bonds issued yesterday with an amount ofRMB136bn. As for month-to-date, 1,850 credit bonds were issued with a totalamount of RMB1,846bnraised, representing a 16% yoy increase [BABA]Alibaba Group’s semiconductor subsidiary, T-Head, has expanded