Sentiment in the Asia bond market continued to improve 亞洲債市的風險情緒持續改善

Sentiment in the Asia bond market continued to improve

The risk sentiment in the Asia bond market fluctuated with the movements of U.S. Treasury yields in recent days. After the 10-year Treasury yield fell for two consecutive days from a 16-year high, risk appetite in the Asia bond market improved on Friday (10/6). However, there was still no significant issuances of U.S. dollar bonds in the primary market, and the market was waiting for the important non-farm payroll data to be released later, which would provide guidance for the future market. In the secondary market, credit spreads of Asia IG bonds were mostly flat or slightly narrowed, with trading volumes still relatively light. New World Development, which announced on its online earnings conference last Friday that it would significantly cut dividends and buy back some bonds to reduce leverage, traded more actively. Some hedge funds were aggressively buying its perpetuals, while real money investors were focusing on bullet bonds. Private banking clients had two-way trades.

Important news
Sunac China, a major Chinese property developer, has received approval from a Hong Kong court on Thursday, October 5th, for its offshore debt restructuring plan. This marks a significant milestone as it becomes the first large Chinese real estate company to clear the final major hurdle in restructuring its debt.
Sunac China, which had accumulated nearly $10 billion in debt, is set to reduce this burden by at least $4.5 billion through a debt-to-equity swap. This move is expected to greatly relieve the liquidity pressure the company has been facing. The remaining debt will be managed by issuing new bonds, with maturity periods spanning from 2 to 9 years. These bonds will carry coupon rates falling between 5% and 6.5%. This strategy will also offer a buffer period of 2 to 3 years.
Overall, Sunac China’s successful debt restructuring is anticipated to significantly lower its total debt and contribute to the restoration of its operations. This development has the potential to positively impact the company’s financial health.

Secondary Market
• NWDEVL 4.75 2027 senior unsecured bond traded near 13.58%
• NWDEVL 5.875 2027 senior unsecured bond traded near 13.13%
• NWDEVL 4.5 2030 senior unsecured bond traded near 12.98%

亞洲債市的風險情緒持續改善

近日亞洲債市的風險情緒隨美債收益率的走勢而起伏,在美債收益率自16年來的高點連2日回落後,週五(10/6)亞洲債市的風險情緒已有所改善,惟初級市場仍無重大美元計價債券發行,市場靜候稍晚即將公布的重要非農就業數據,以為後市提供指引。次級市場方面,亞洲投資等級標的信用利差多持平或小幅收窄,交易量仍偏清淡。上週五於線上業績發布會表示將大幅刪減配息並買回部分債券以降低槓桿的新世界發展交易則較為活絡,有避險基金較積極買入其永續債券,實質資金投資人則以買入其有到期日之普通債券為主,而私人銀行客戶則是雙向交易皆有。

重要新聞
融創中國(Sunac China)於週四(10/5)獲香港法院批准其境外債重組計畫,成為首家排除此類債務重組最後關鍵障礙的大型中國房企。
未來公司近百億美元債務將透過債轉股方式減債至少45億美元,大幅緩解流動性壓力。其餘債務,則將發行新債券進行置換,期限2年至9年不等,票面利率5%至6.5%之間,也可換取2至3年緩衝空間。
整體而言,預期融創中國在完成此次債務重整後,將大幅降低整體債務規模,有利於恢復經營。

次級市場
• 新世界發展(NWDEVL)4.75 2027年主順位債券價格收益率約13.58%
• 新世界發展(NWDEVL)5.875 2027年主順位債券價格收益率約13.13%
• 新世界發展(NWDEVL)4.5 2030年主順位債券價格收益率約12.98%