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Original Title: Daily | Market Focus on GF Development Loan Preservation and Disposal Plan, Evergrande’s US Dollar Debt slumped again in the intraday market and fluctuated
Source: U.S. dollar bond tracking
Yesterday’s key review
Market Recap
Market overview:Biden administration officials expect signs of easing the global semiconductor supply shortage. The US social security funds are expected to usher in the largest growth in the past four decades, and inflation is facing higher upward pressure. China proposes to significantly reduce the cost of childbearing and education. Henan’s flood control emergency response was upgraded to Level II, and Zhengzhou’s rainfall exceeded historical extremes and caused many deaths. China will carry out anti-monopoly law enforcement in key livelihood areas such as medicine, education and training.
In terms of Chinese dollar bonds, the investment grade index fell 0.04%, and the high-yield index fell 0.59%. The US high-yield index rose 0.15%, and the investment grade index fell 0.12%.
Investment grade:The Chinese-funded US dollar bond investment-grade market weakened as a whole under the environment of unstable macro sentiment and low US bond yields. The names of technology and state-owned enterprises have widened by 3~5bps, including Tencent, Alibaba,China Petroleum, Sinochem Group and other names. The financial sector also widened by about 5bps, and the urban investment sector remained stable. In terms of new debt, ICBC International’s new issuances edged up slightly.
High-yield aspects:The high-yield market of Chinese-funded US dollar bonds focused on Evergrande transactions, and the overall weakness continued. In early trading, the Evergrande curve plunged by 6-10pt, because its two residential sales projects in Shaoyang, Hunan were suspended due to suspected misappropriation of funds, and its onshore bonds and stocks plummeted. After the news that project sales were allowed to resume, the bond quickly rebounded from the low point by 3~4pt, and the comprehensive daily curve still fell by 3~6pt.The market also focuses on GF Development Loan Preservation and Disposal Plan. The names of Kaisa, Fantasia, and R&F with single B ratings fell by about 1 to 2pt, and names with BB ratings fell slightly by 0.25 to 0.5pt. In terms of new debt, Road King 26 and Anton Oil Service 25 both closed down about 0.25pt.
1. Global market overview
Global Market Review
Table 2: The performance of global major asset classes (updated this morning)
Table 3 (1): Performance of major interest rate varieties in China and the United States (updated this morning)
2. U.S. dollar debt secondary market
1. The secondary transactions of active coupons
(1) Investment-grade active coupons
The Chinese-funded US dollar bond investment-grade market weakened as a whole under the environment of unstable macro sentiment and low US bond yields. The names of technology and state-owned enterprises have widened by 3~5bps, including names such as Tencent, Alibaba, PetroChina, and Sinochem. The financial sector also widened by about 5bps, and the urban investment sector remained stable. In terms of new debt, ICBC International’s new issuances edged up slightly.
Table 4: The rise and fall of investment-grade active bonds
(2) High-yield active coupons
The high-yield market of Chinese-funded US dollar bonds focused on Evergrande transactions, and the overall weakness continued. In early trading, the Evergrande curve plunged by 6-10pt, because its two residential sales projects in Shaoyang, Hunan were suspended due to suspected misappropriation of funds, and its onshore bonds and stocks plummeted. After the news that project sales were allowed to resume, the bond quickly rebounded from the low point by 3~4pt, and the comprehensive daily curve still fell by 3~6pt.The market also focuses on GF Development Loan Preservation and Disposal Plan。The names of Kaisa, Fantasia, and R&F with single B ratings fell by about 1 to 2pt, and names with BB ratings fell slightly by 0.25 to 0.5pt. In terms of new debt, Road King 26 and Anton Oil Service 25 both closed down about 0.25pt.
Table 5: The rise and fall of high-yield active coupons
(3) Distressed section
For other active coupons, Tus-Kehua closed up slightly by 2pt.
Table 6: The rise and fall of the Distressed sector
(4) Performance of newly issued bonds
Table 7: Recent performance of newly issued bonds
3. New USD bond issuance market
New Issue Market
1. New debt pricing
Nothing.
2. New announcement
[Announcement]Issuer/Guarantor:Aluminum Corporation of China
Issuance structure: guaranteed issuance
Issuer/Guarantor Rating (M/S/F): -/BBB-/A-
Expected debt rating/debt rating (M/S/F): -/-/A-
JGCs，JLMs & JBRs：CITIC BankInternational, DBS Bank,Bank of China(Bank of China International and Bank of China), China Construction Bank (Asia)
JLMs & JBRs: Barclays, CALM, FranceIndustrial Bank，Shanghai Pudong Development BankHong Kong branch
Roadshow time: A series of conference calls for fixed income investors will be held from July 20, 2021
3. Announced
[Announced]Issuer/Guarantor: Lai Sun Development
Issuance structure: guaranteed issuance
Scale: USD benchmark
JGCs, JLMs & JBRs: BNP Paribas, DBS, HSBC, UBS
Roadshow time: A series of conference calls for fixed income investors will be held on July 19, 2021
[Announced]Issuer/Guarantor:China Shiplease
Issuance structure: guaranteed issuance
Issuer/Guarantor Rating (M/S/F): -/A-/A
Expected debt rating/debt rating (M/S/F): -/A-/A
JGCs, JLMs & JBRs: Bank of China Hong Kong, CCB International, CITIC CLSA, DBS Bank
JLMs & JBRs: ABCI,Bank of Communications, CMB International, CNCB Capital, Alibaba, Haitong International, Shanghai Pudong Development Bank Hong Kong Branch, SPDB International
Roadshow time: A series of conference calls for fixed income investors will be held on July 19, 2021
Note: The data in this article comes from Bloomberg, WIND, and USD bond tracking research. This article is for information only and does not constitute investment advice.
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Editor in charge: Zhao Siyuan
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