Asian Fixed Income/Frontier Market Research

Bondcritic

Bondcritic, established in 2009, is designed to be an independent credit research voice that helps investors gain insights and unbiased analyses on Asian fixed income market. Our mission is to discover deep-value Asian high-yield and distressed bonds with a bottom-up approach, together with the help of our proprietary ESG (Environmental, Social Development, and Governance) model. At the same time, we focus on bringing investment cases of unrated and unloved issuers to the general public.

HNA Group:  To Be or Not To Be (Nationalized)

Asian Credit Monitor: 2018 Portfolio Strategy, US Rate Trajectory, China Credit Gap

Independent Asian Credit Research, Bondcritic

Warut Promboon

Independent Asian Credit Research

Credit

<a href="https://www.smartkarma.com/entities/25987" target="_blank">HNA Group Ltd. (HNAGRZ CH)</a> (HNA)’s SANYPH 11/18s will mature on November 6 (next Tuesday) and we believe there is a likelihood that HNA will repay the bonds, based on the group’s credit facilities, on-going asset sales, and additional new debt the group has raised so far since July
We note that it will be difficult to buy SANYPH 11/18s since the maturity date is already next week. Our liquidity analysis puts more confidence in HNA’s cashflow until the end of June 2019 and we revise our recommendation on SANYPH 11/18s, SANYPH 12/18s, and HONAIR 1/19s to a tactical OVERWEIGHT (from Underweight). We are less confident in GRCHAR 3/19s as the bonds do not represent HNA’s reputation as much, in our view.  
Over the longer term, we do not believe that the group's financial situation is sustainable. The group’s liquidity situation remains tight and deteriorating reputation (from negative headlines) has hit the group’s profitability. As such, we maintain our UNDERWEIGHT recommendation on GRCHAR 3/19s, SANYPH 8/19s, SANYPH 10/20s, and HONAIR Perp.

HNA Group Ltd. (HNAGRZ CH) (HNA)’s SANYPH 11/18s will mature on November 6 (next Tuesday) and we believe there is a likelihood that HNA will repay the bonds, based on the group’s credit facilities, on-going asset sales, and additional new debt the group has raised so far since July
We note that it will be difficult to buy SANYPH 11/18s since the maturity date is already next week. Our liquidity analysis puts more confidence in HNA’s cashflow until the end of June 2019 and we revise our recommendation on SANYPH 11/18s, SANYPH 12/18s, and HONAIR 1/19s to a tactical OVERWEIGHT (from Underweight). We are less confident in GRCHAR 3/19s as the bonds do not represent HNA’s reputation as much, in our view.  
Over the longer term, we do not believe that the group's financial situation is sustainable. The group’s liquidity situation remains tight and deteriorating reputation (from negative headlines) has hit the group’s profitability. As such, we maintain our UNDERWEIGHT recommendation on GRCHAR 3/19s, SANYPH 8/19s, SANYPH 10/20s, and HONAIR Perp.

HNA Group

HNA Group: TRICK or TREAT