In today’s briefing:
- Lucror Analytics – Morning Views Asia
- CSN 3Q25: Mining Strength Offsets Steel Weakness
Lucror Analytics – Morning Views Asia
- In today’s Morning Views publication we comment on developments of the following high yield issuers: Bharti Airtel, China Hongqiao, West China Cement
- UST yields fell for a fourth straight day, led by the front end, following reports that Kevin Hassett has emerged as the front-runner to be the next Fed chairman.
- The yield declines were also supported by soft September retail sales and PPI data.
CSN 3Q25: Mining Strength Offsets Steel Weakness
- We maintain Overweight on the 2031s and 2032s for their attractive carry, meaningful spread pickup versus LatAm BB peers, and stronger downside protection at current discounted prices.
- We think credit metrics will remain stable, supported by strong liquidity covering maturities through 2027, easier-to-roll bank debt, and expected EBITDA improvement from recovering steel and resilient mining.
- We see potential spread compression from recovering steel prices, protectionist measures, asset-sale-driven deleveraging, and solid operating assets, reinforcing the bonds’ attractive relative value at current wide levels.
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