This is Sales & Trading Commentary and not research, views expressed may differ from UBS Research

Morning, TGIF

News Highlights

  • REDD: Macau tourist arrivals likely to be at 69% of pre-pandemic level this year
  • REDD: China regulators vow support for tech firms in push to become global innovation hub
  • REDD: New World Development controlling Cheng family denies discord on succession plans
  • DW: NWS Holdings announces close of HKD 9.15/share conditional voluntary general cash offer from Chow Tai Fook Enterprises
  • DW: Far East Horizon unit proposes to offer CNY 1bn 179-day bills to repay debts
  • REDD: LMIRT’s Lippo Plaza Jogja mall occupancy rate at 66% amid challenges

Asia Flow Credit Flow Update

  • Asia IG/Crossover –

It was an active and firm session across Asia IG and Crossover space. In the morning, NWDEVL launched a tender offer for 7 bonds with a total size of 600m. This drove the curve 2-3pts higher post announcement. However, flows were skewed to better selling from RM accounts into some HF buying. The curve retraced back to close unchanged to just 50c higher on the day. This boosted the rest of the HK space with NANFUN 1pt higher and HYSAN 1-1.5pts higher with the 4.1 PERP being the most chased. In the afternoon, the focus shifted to China IG property space with the BBG headline that the Chinese authorities have asked banks to provide unsecured loans to property developers. This further boosted the entire property space with LNGFOR being the main mover. LNGFOR curve rallied 6pts with active two way flows from PB into RM esp on the 29s. VNKRLE long end also closed the day 5-6pts higher.

Low beta IG space, on the other hand, was very muted with US & Japan out on Thanksgiving. Spreads closed unchanged, and flows were skewed to slight better buying.

  • Asia HY/Non-China Credit –
    In HY property space, sentiments were also boosted by the BBG headlines with the quality names like FTLNHD, SHUION and ROADKG trading 1-3pts higher. DALWAN still see some selling on the short end 24s. The Distressed property space also firmed up. COGARD edged another 50-75c higher and CIFIHG was also 25c higher on the day. China Industrials space was unchanged on the day

Non-China space was relatively muted with levels unchanged to 25c lower but there were some RM profit taking selling.

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Sean Aw

UBS AG, Singapore

Credit Sales

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Singapore 238459

+65 64953298

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