Top US Congress Pressures Trump to Step Down, Tencent and Ali Dollar Debt Dramatically Expands

Original title: Daily | US Congress Pressures Trump to Resign; Tencent and Ali’s US dollar debts widened significantly

Source: Dollar bond tracking

　　Bond market daily chart

Chart of the day

　　Yields on 10-year US Treasuries rose above 1% for the first time since March last year

Source: Zhibao

　　Key review yesterday

Market overview

　　Market overview:The high-level US Congress pressured Trump to resign, and many senior White House officials also resigned to show their dissatisfaction with the president’s incitement to congressional violence. Investors bet on more fiscal stimulus after the Democratic Party swept through the White House, Senate and House of Representatives, and US stocks rose to an all-time high overnight. China’s foreign exchange reserves increased slightly in December. It is reported thatGroup of antsYou are planning to transfer part of your small business loan business. Shijiazhuang City was closed after some 200 boxes of new crowns appeared.

In terms of Chinese dollar bonds, the investment grade index fell 0.19% and the high yield index fell 0.25%. In the United States, the high yield index rose 0.15% and the investment grade index fell 0.06%.

　　High performance aspects:Active high-yield coupons fell 0.5 points overall due to ample supply in the primary market.China fortuneAnother fall of almost 5 points, the general curve of Kaisa fell 2 points. CIFI and OMC stabilized with the support of long-term buyers. In terms of new debt, Logan 28 fell 1.5 points, Xincheng 25 fell 0.5 points, and Country Garden 30 fell 1.25 points.

　　Investment grade:In the weaker macro sentiment, active investment grade bonds expanded 2-5 basis points overall. The United States is said to be considering adding Alibaba and Tencent to the blacklist of prohibited investments. Tencent’s general curve has widened by 15 basis points and Alibaba has widened by 10 basis points. In terms of urban investment, it is rumored in the market that urban investment bonds will introduce tiered bond issuance management, and poor quality bonds have been sold in the afternoon. In terms of new debt, Sinopec 26 fell slightly by 2bp, while Sinopec 31 expanded by 4bp. Due to strong private banking clients and bank purchases, the new debt of the Zhongsheng Group was reduced by 30 basis points.

　　1. Global market overview

　　Global Market Review

Table 2: Performance of the major global asset classes (updated this morning)

Table 3 (1): Performance of the main varieties of interest rates in China and the United States (updated this morning)

　　2. Secondary market for US dollar debt

　　1. The secondary transactions of active coupons

　　(1) Active investment grade coupons

In the weaker macro sentiment, active investment grade bonds expanded 2-5 basis points overall. The United States is said to be considering adding Alibaba and Tencent to the blacklist of prohibited investments. Tencent’s overall curve has widened by 15 basis points and Alibaba has expanded by 10 basis points. In terms of urban investment, it is rumored in the market that urban investment bonds will introduce tiered bond issuance management, and poor quality bonds have been sold in the afternoon. In terms of new debt, Sinopec 26 fell slightly by 2bps, while Sinopec 31 expanded by 4bps. Due to strong clients from private banking and bank purchases, the new debt of the Zhongsheng Group was reduced by 30 basis points.

Table 4: Rise and Fall of Active Investment Grade Bonds

　　(2) Active high yield coupons

Active high-yield coupons fell 0.5 points overall due to ample supply in the primary market. China Fortune Happiness sank nearly 5 points again and Kaisa’s overall curve fell 2 points. CIFI and OMC have stabilized with the support of long-term buyers. In terms of new debt, Logan 28 fell 1.5 points, Xincheng 25 fell 0.5 points and Country Garden 30 fell 1.25 points.

Table 5: Rise and Fall of Active High Yield Bonds

　　(3) Other active coupons

Other active coupons, Ziguang,Yunnan Urban InvestmentThere are slight fluctuations.

Table 6: Rise and fall of other active bonds

　　(4) Yield on newly issued bonds

In terms of net prices, Logan 28 fell 1.5 points, Xincheng 25 fell 0.5 points and Country Garden 30 fell 1.25 points. Sinopec 26 decreased slightly by 2 basis points, while Sinopec 31 expanded by 4 basis points.

Table 7: Recent performance of newly issued bonds

　　3. New market for issuing bonds in USD

　　New Issue Market

　　1. New price of debt

　　[Precios]Issuer / Guarantor:Bank of ChinaHong Kong Branch

Distribution structure: direct distribution

Term: 3 years | 2 years

Scale: USD 500 million | RMB 1.8 billion

Subject Rating (M / S / F): A1 / A / A

Debt Rating (M / S / F): A1 / A / A

IPT: T + 110bps area | 3.3% area

FPG: T + 72bps | 2.8%

JGC, JLM and JBR: Bank of China, BNP Paribas, Credit Agricole, HSBC

JLM and JBR: Bank of America Securities,CICC, Citigroup, ICBC (Asia), Mizuho Securities

　　[Precios]Issuer / Guarantor:The new Worlddevelopment of

Issuance structure: guaranteed issue

Term: 10 years

Scale: USD 200 million

Issuer / Guarantor Rating (M / S / F): – / – / –

Debt Rating (M / S / F): – / – / –

IPT: T + 300bps area

FPG: T + 275bps

JGC, JLM and JBR: JP Morgan Chase, UBS

　　[Precios]Issuer / Guarantor： Haidilao

Emission structure: direct emission

Term: 5 years

Scale: US $ 600 million

Issuer / Guarantor Rating (M / S / F): BBB / BBB / –

Debt Rating (M / S / F): – / BBB / BBB

IPT: T + 225bps area

FPG: T + 173bps

JGC, JLM and JBR: Morgan Stanley, CICC

JLM and JBR: CMB International, Credit Suisse

　　[Precios]Issuer / Guarantor: Huarong Golden Rent

Issuance structure: Maintenance contract

Duration: 363 days

Scale: US $ 300 million

Issuer / Guarantor Rating (M / S / F): – / – / A-

Weihaohe Asset Purchase Agreement Provider Rating (M / S / F): Baa1 / BBB + / A-

Debt Rating (M / S / F): P-2 / – / A-

IPT: 2.35% area

FPG: 1.9%

JGC, JLM and JBR: Standard Chartered Bank, BNP Paribas, CMB International, Haitong International

JLM and JBR: Huarong International Securities, Bank of China, CICC,Bank of MinshengHong Kong Branch, China Merchants Wing Lung Bank, China Commercial Trust Bank

　　[Precios]Issuer / Guarantor:Rongsheng Development

Issuance structure: guaranteed issue

Duration: 364 days

Scale: US $ 300 million

Issuer / guarantor rating (M / S / F): Ba3 / BB- / BB-

Debt Rating (M / S / F): BB – / – / –

IPT: 9.15% of area

FPG: 8.95%

JGC, JLM and JBR:Guotai JunanInternational, UBS, Haitong International,Soochow ValuesInternational

JLM and JBR: Bank of Communications International, Zhongda Securities,CITIC BankInternational, DBS Bank

　　[Precios]Issuer / Guarantor： Times China Holdings

Distribution structure: direct distribution

Term: 6NC4

Scale: USD 350 million

Issuer / guarantor rating (M / S / F): Ba3 / BB- / BB-

Debt Rating (M / S / F): B1 / B + / BB-

IPT: 6.15% of area

FPG: 5.75%

JGC, JLM and JBR: Deutsche Bank, UBS, Credit Suisse, CITIC Lyon, Guotai Junan International, Haitong International, Bank of America Securities, China CITIC Bank International, Citi, CMBC Capital, JP Morgan Chase, Nomura

　　[Precios]Issuer / Guarantor: CCRE Real Estate

Distribution structure: direct distribution

Term: 4.5NC2.5

Scale: USD 260 million

Issuer / guarantor rating (M / S / F): Ba3 / B + / BB-

Debt Rating (M / S / F): – / – / BB-

IPT: 8% of area

FPG: 7.875%

JGC, JLM and JBR: BNP Paribas, Bank of America Securities, CCB International, China CITIC Bank International, Deutsche Bank, Haitong International, Morgan Stanley, Standard Chartered Bank

　　2. New announcement

　　[Anuncio]Issuer / Guarantor: Beijing Capital Group

　　Issuance structure: Maintenance contract

　　Weihaohe Stock Purchase Agreement Vendor Rating (M / S / F): Baa3 / BBB- / BBB

　　Debt Rating (M / S / F): – / – / BBB

　　JGC, JLM and JBR: HSBC,China valuesInternational, China CITIC Bank International

　　JLM and JBR: CICC, Haitong International, Guotai Junan International, CMB International,China Merchants Values(Hong Kong), Citigroup, BNP Paribas, Silk Road International, China Merchants Wing Lung Bank

　　Tour time: Jan 7, 2021

　　3. Announced

　　Nothing.

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