Credit

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Bukit Makmur Mandiri
• UST yields fell 2-4 bps across the curve yesterday, on the back of a strong auction of 3Y notes. The yield on the 2Y UST declined 2 bps to 3.56%, while that on the 10Y UST was down 3 bps at 4.12%.
• Equities retreated from record-high levels, weighed down by tech stocks. The S&P 500 dropped 0.4% to 6,715 and the Nasdaq slumped 0.7% to 22,788.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Adani Green Energy
• UST yields climbed yesterday, led by the long end. This was driven by a spike in long-end JGB yields, following pro-stimulus lawmaker Sanae Takaichi’s election to lead Japan’s ruling party, as well as a sell-off in French bonds after French Prime Minister Sebastien Lecornu unexpectedly resigned.
• The yield on the 2Y UST rose 1 bp to 3.59%, while that on the 10Y UST was up 3 bps at 4.15%. Equities rallied, driven by semiconductor stocks. This came after AMD signed a large chip supply agreement with OpenAI, in a deal that could see OpenAI taking a 10% stake in the chipmaker. The S&P 500 rose 0.4% to 6,740, while the Nasdaq climbed 0.7% to 22,942.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Vista Land & Lifescapes, Rakuten Group, Vedanta Resources, Tata Steel
• UST yields rose on Friday, led by the front end. There was a lack of catalysts, due to non-publication of the September nonfarm payrolls amid the government shutdown, albeit private surveys showed weakening US services data. Yields on the 2Y and 10Y USTs rose 4 bps each to 3.58% and 4.12%, respectively. Equities were mixed, with the S&P 500 stable at 6,716, while the Nasdaq fell 0.3% to 22,781.
• Japan’s ruling Liberal Democratic Party has elected former economic security minister Sanae Takaichi as its new leader, making the 64-year-old likely to become the country’s first female prime minister. Ms Takaichi replaces Shigeru Ishiba, who resigned as prime minister last month after the party suffered two election blows (including losing its majority in the Lower House).

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Logan Group
• The UST curve flattened marginally yesterday, as long-end yields declined marginally while the short end was stable.
• Trading volumes were reported to be below average, as macro releases were stalled in the second day of the US government shutdown.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: JSW Steel
• UST yields fell yesterday, led by the front end and belly, as weaker than projected ADP employment data further bolstered Fed easing expectations. The UST curve bull steepened, with the yield on the 2Y UST down 7 bps to 3.54%, while that on the 10Y UST declined 5 bps to 4.10%.
• Equities climbed for the fourth day, with the market remaining upbeat despite the US government shutdown. The S&P 500 and Nasdaq rose 0.3% and 0.4% to 6,711 and 22,755, respectively.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Yuexiu REIT, Vedanta Resources, Nickel Industries
• The UST curve twisted slightly steeper yesterday, with the front-end continuing to be supported by the prospect of Fed rate cuts against the backdrop of a looming US government shutdown.
• The yield on the 2Y UST fell 1 bp to 3.61%, while that on the 10Y UST was up 1 bp at 4.15%. Equities climbed for the third day, with the S&P 500 and Nasdaq up 0.4% and 0.3%, respectively.

• Asian USD high-yield bonds have outperformed on an improving sentiment toward emerging market credits.
• China 5-year CDS has declined 14 bps since June and we expect non-property Chinese credits to have more capital inflow on  the hunt for a better yield.
• We are in favor of Chinese high-yield credits with recurring revenue and operate in more defensive industries such as consumer non-discretionary, utilities, and pharmaceuticals.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Tata Motors, Vedanta Resources
• UST yields declined yesterday, led by the long end, on potential haven demand amid concerns over a looming US government shutdown. The UST curve bull-flattened, with the yield on the 2Y UST dropping 2 bps to 3.62%, while the yield on the 10Y UST fell 4 bps to 4.14%.
• Equities climbed for the second day, with the S&P 500 and Nasdaq up 0.3% and 0.5%, respectively.

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• In today’s Morning Views publication we comment on developments of the following high yield issuers: Tata Motors, JSW Steel
• UST yields were little changed on Friday, following the release of robust August consumption data in the US, while the core PCE price index was broadly stable. The yield on the 2Y UST declined 1 bp to 3.64%, while the yield on the 10Y UST was stable at 4.18%. Equities recovered from a three-day slide. The S&P 500 rose 0.6% to 6,644, while the Nasdaq climbed 0.4% to 22,484.
• In the US, August personal spending accelerated slightly to 0.6% y-o-y (0.5% e / 0.5% p), while personal income came in marginally above estimates at 0.4% (0.3% e / 0.4% p).

• New World Development’s (NWD) FY 2024-25 results were weak, with the company reporting another large net loss of HKD 16.3 bn (after the HKD 19.7 bn loss in FY 2023-24), mainly driven by impairment losses.
• Underlying business performance was also soft, as core operating profit (excluding one-off items) fell 13% y-o-y.
• That said, OCF was strong and FCF was positive. This was supported by higher property deliveries in Hong Kong, lower capex (for land and construction) and G&A expenses, as well as the stoppage of dividend payments and perpetual distributions.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Nickel Industries
• Front-end UST yields climbed yesterday, following the release of strong Q2/25 GDP and initial jobless claims data.
• The UST curve bear flattened, with the yield on the 2Y UST jumping 5 bps to 3.66% and that on the 10Y UST rising 2 bps to 4.17%. Equities fell for a third straight day. The S&P 500 and Nasdaq both declined 0.5% to 6,605 and 22,385, respectively.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Yuexiu Property
• UST yields rose 2-5 bps across the curve yesterday, amid a soft auction of 5Y notes and a large slate of corporate bond issuances. The yield on the 2Y UST increased by 2 bps to 3.61%, while that on the 10Y UST climbed 4 bps to 4.15%.
• Equities retreated for a second day, but remained near record-high levels. The S&P 500 and Nasdaq both declined 0.3% to 6,638 and 22,498, respectively.

• Nickel Industries (NIC) launched a roadshow yesterday to market a USD 144A/RegS 5NC2 senior unsecured notes offering.
• The new notes are rated B1 by Moody’s and B+ by Fitch.
• The expected size is USD 500 mn.