20260914-招银国际-Fixed_Income_Daily_Market_Update_5页_396kb

CMBI Credit Commentary Summary

Core Content Overview

This document provides a detailed market update and analysis from the Fixed Income Department of CMB International Global Markets Limited (CMBIGM). It covers the performance of various fixed income instruments, macroeconomic news, analyst comments, and new issue pipelines in the Asia market. The report also includes important disclosures and disclaimers regarding the use and distribution of the information.

Market Performance

• Asia IG and HY: Market activity was quiet with light flows.
• SOFTBKs: Under betting selling, dropping 0.2-0.5 points.
• LGFV: Selling flows observed, with some tactical dip-buying from Chinese AMs in 3-6yr-to-call paper.
• CKINF Perps: Down 0.2 points.
• VLLPM '29: Up 1.2 points.
• HONGQI '28: Unchanged this morning.

Trading Desk Comments

• US Market: Higher-than-expected PPI data led to cautious sentiment ahead of CPI and FOMC meeting.
• UST Yields: Rose sharply, with 2/5/10/30 year yields at 4.63%/4.78%/4.96%/5.35%.
• FRNs: Relatively more active, with two-way flows in front-end FRNs from PBs.
• Financials: Bank T2 and AMCs tightened by 5bps, while TW lifer T2 moved 0.5-2bps tighter.
• KR HY: HYUSEC/NHSECS/DAESEC tightened by 2bps, while industrial names HYUELE/KORELE/POHANG moved 1bp wider to 3bps tighter.
• China TMTs: Unchanged to 0.1pt lower.
• CNH LGFV: Unchanged to 0.2pt lower.
• CNH TMT: BABA/MEITUA/TENCNT were unchanged to 0.1pt lower.

Top Movers

Desk Analyst Comments on PCORPM

• PCORPM 7.35 Perp: Maintained a buy recommendation due to attractive carry and smooth access to diverse funding channels.
• Trading at YTC: 6.8% at 101.0.
• Refinancing Pressure: Lower after exchange and tender offers.
• Performance in 1H26:
  • Revenue: Increased by 56.8% yoy to PHP605.9bn.
  • Sales Volume: Rose 6% yoy to 67.9mn barrels.
  • Fuel Prices: Contributed to higher revenue.
  • Cost of Sales: Increased by 60.9% yoy to PHP583.7bn due to lower refinery output.
  • Gross Profit: Declined 6.0% yoy to PHP22.2bn.
  • EBITDA: Fell 14.2% yoy to PHP19.4bn.
  • Net Profit: Dropped 27.4% yoy to PHP3.8bn.
  • Operating Cash Flow: Negative PHP39.0bn.
  • Free Cash Flow: Also turned negative.
  • Net Leverage: Increased to 5.9x from 4.4x.
  • Cash/ST Debt: Declined to 0.2x.

New Issues

• Priced Today: No offshore Asia new issues were priced.
• Pipeline:
  • Hyundai Capital America: 3yr, T+100 and T+115, A3/A-/A- rating.
  • Korea Credit Guarantee Fund: 3yr, SOFR+100, Aa2/-/- rating.
  • Mitsubishi Estate Company: 5yr, A2/A/- rating.
  • Sony Life Insurance Co., Ltd: 30NC10, -/A-/- rating.

News and Market Color

• Onshore Primary Issuances: 84 credit bonds issued last Friday, totaling RMB89bn. Month-to-date, 755 credit bonds issued, raising RMB757bn, a 29.5% yoy increase.
• Macau Visitor Arrivals: Reached 30mn by 11am on 11 Sep'26, a milestone 22 days earlier than in 2025.
• HONGQI: Completed early redemption of USD330mn HONGQI 7.05 01/10/28.
• SHUION: Selling commercial properties in Chongqing for RMB201mn, expected net cash inflow of RMB179mn.
• SKINNV: S&P revised outlook to stable, BBB- rating affirmed.
• SOFTBK: Fitch assigned BB+ rating with stable outlook.

Important Disclosures

• Risks: Investment in securities involves risks, and past performance does not guarantee future results.
• No Investment Advice: The report is for informational purposes only and does not provide tailored investment advice.
• Conflicts of Interest: CMBIGM may have investment banking relationships with issuers and may act as principal or engage in transactions for itself or clients.
• Distribution Restrictions:
  • UK: Only for persons falling under Article 19(5) or Article 49(2) of the Financial Promotion Order 2005.
  • US: Intended solely for major US institutional investors; not for general distribution.
  • Singapore: Distributed by CMBISG, an Exempt Financial Adviser, and subject to Singapore regulations.

Author Certification

• The author certifies that the views expressed reflect personal opinions and are not influenced by compensation.
• The author and associates did not trade in the stocks covered within 30 days prior to the report's issue and will not do so within 3 business days after.

Conclusion

The report highlights the current market dynamics in fixed income instruments, with a focus on PCORPM and HONGQI. It provides insights into market sentiment, trading activity, and key financial metrics, while also noting upcoming new issues and macroeconomic developments. The analysis is supported by detailed tables and is accompanied by important disclosures to ensure transparency and compliance.