Credit

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Shui On Land
• The US market was closed for Thanksgiving yesterday.
• The Biden administration is weighing additional curbs on the sale of semiconductor and AI memory chips to China, reported Bloomberg on Wednesday.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Wynn Macau, ReNew Energy, Softbank Group, Vedanta Resources
• In the US, October personal income came in above estimates at 0.6% m-o-m (0.3% e / 0.3% p).
• Meanwhile, personal spending slowed to 0.4% m-o-m (0.4% e / 0.6% revised p).

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Adani Ports, Vedanta Resources, Seazen Group
• In the US, October new home sales fell 17.3% m-o-m (-1.8% e / 7.0% revised p) to an annualised 610 k units, the lowest in almost two years, amid rising mortgage rates as well as disruptions caused by hurricanes Helene and Milton. Separately, the Conference Board consumer confidence index increased to 111.7 in November (111.8 e / 109.6 p), the highest since August 2023.
• “November’s increase was mainly driven by more positive consumer assessments of the present situation, particularly regarding the labour market. Compared to October, consumers were also substantially more optimistic about future job availability, which reached its highest level in almost three years”, according to Dana M. Peterson, Chief Economist at The Conference Board.

• EA’s Q3 results on 14-November was disappointing as expected on the declining EBITDA.
• Criat’s iRAP Global Plus PD Toolkit (iRap) still indicates the implied international credit rating of “B+” which gives us relative comfort for the credit.
• EA’s story rests on the usage of its network to extend debt maturity and sell assets, and not so much on cashflow which may be generated in the near term. 

• Treasuries surged yesterday, with yields falling 10-13 bps across the curve after a strong auction of 2Y notes and in the wake of US President-elect Donald Trump’s nomination of Scott Bessent as the next Treasury Secretary.
• Mr Bessent is expected to implement Mr Trump’s tax cuts, while reducing the budget deficit and boosting GDP growth through deregulation and other pro-growth policies.
• The yield on the 2Y UST fell 10 bps to 4.27%, while that on the 10Y UST declined 13 bps to 4.28%. 

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Adani Ports & Special Economic Zone
• Bharti Airtel

• In the US, existing home sales rose 3.4% m-o-m in October (2.9% e / -1.3% revised p) to an annualised 3.96 mn units.
• That said, existing home sales grew at the slowest pace since late 2010, amid rising mortgage costs.
• Separately, the Conference Board leading index fell 0.4% (-0.3% e / -0.3% revised p) to 99.5 in October 2024. 

• The US indictment of key executives is a material credit negative for the Adani Group, with the allegations being more serious than those from Hindenburg Research’s short-sell report in January 2023.
• In the near term, the US indictment is likely to constrain the group’s access to financing, particularly in the offshore market.
• We note that the Justice Department’s charges are directed at the individual executives, not at Adani Green Energy or other group entities.

• The US indictment of key executives is a material credit negative for the Adani Group, with the allegations being more serious than those from Hindenburg Research’s short-sell report in January 2023.
• In the near term, the US indictment is likely to constrain the group’s access to financing, particularly in the offshore market.
• We note that the Justice Department’s charges are directed at the individual executives, not at Adani Green Energy or other group entities.

• Adani Green Energy Limited (AGEL) is one of the world’s largest developers and operators of solar and wind power.
• The company’s assets are geographically diversified across India, with total locked-in capacity of 20.4 GW (of which 10.9 GW was operational as of June 2024).
• AGEL is listed on the Bombay Stock Exchange and National Stock Exchange of India. 

• In today’s Morning Views publication we comment on developments of the following high yield issuers: China Vanke, Gajah Tunggal, ReNew Energy, Adani Green Energy, Bharti Airtel, UPL Limited
• Treasuries fell yesterday, with yields up 1-3 bps across the curve following a soft auction of 20Y notes.
• The yield on the 2Y UST rose 3 bps to 4.32%, while that on the 10Y UST was up 1 bp at 4.41%.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Health and Happiness (H&H), Yinson Production, Xiaomi Corp, ReNew Energy
• In the US, October housing starts declined 3.1% m-o-m to an annualised 1.31 mn units (-1.5% e / -1.9% revised p), the slowest pace in three months as builders put off projects in the wake of hurricanes Helene and Milton.
• Meanwhile, October building permits (a proxy for future construction) eased 0.6% m-o-m to an annualised 1.42 mn units.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Adani Green Energy, Yankuang Energy
• In the US, treasuries edged higher yesterday, with yields declining 2-4 bps across the curve on possible dip buying and despite a large slate of corporate bond issuances.
• The yield on the 2Y UST fell 3 bps to 4.28%, while the 10Y declined 3 bps to 4.41%. Equities rebounded from last week’s losses, with the S&P 500 and Nasdaq up 0.4% and 0.6%, respectively.

• In today’s Convertibles Brief publication we comment on developments of the following high yield issuers: Lenovo
• Credit markets widened on Friday, with the iTraxx X-Over increasing 8 bps to 304 bps.
• European bourses declined 0.1-1.3%, except for the IBEX 35 (+1.0%). In the US, the S&P 500 and Nasdaq fell 1.3% and 2.2%, respectively.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Gajah Tunggal, Lenovo
• In the US, advance retail sales came in slightly above expectations at 0.4% m-o-m in October (0.3% e / 0.8% revised p), driven by higher auto sales. In addition, retail sales growth for September was revised upwards to 0.8% (from 0.4%). Retail sales excluding auto expanded 0.1% m-o-m (0.3% e / 1.0% revised p).
• Separately, industrial production fell 0.3% m-o-m in October (-0.4% e / -0.5% revised p), owing to the Boeing machinist strike and lingering impact from hurricanes Milton and Helene.