Weekly Report of Huatai United Securities Credit Bond Market
Huatai United Securities Co., Ltd. Zheng Ruxi The CBRC has recently officially issued the Guiding Opinions on Strengthening the Supervision of Loan Risk of Local Government Financing Platforms in 2012 (YJF [2012] No. 12). Compared with the guidance of last year, this year has retained the orientation of "reducing the old and controlling the new", but there has been some looseness in the handling of existing debt (especially problematic debt), This will be of great help to alleviate the risk concerns of systematic urban investment bonds. From this week, the medium and short-term bills may have some shocks, and the downward range of the yield of the medium and low rated varieties may temporarily slow down, because: (1) Although the central bank has maintained its relatively loose liquidity orientation, it is difficult for the capital to continue to be superior before the time point at the end of the quarter, and the short-term downward range of short-term financing yield driven by the capital has been large, so there is a consolidation requirement; (2) Supply has risen to a certain extent in these two weeks. Of course, short-term shocks do not affect the continued optimism of the middle line. After all, the credit spread level of various varieties is still mostly above the median region. Recently, there has been a peak of issuance of urban investment bonds. The newly issued varieties not only have strong homogeneity in terms, but also most of their qualifications are difficult to reach the level reflected by the rating. Although the central line of urban investment bonds can still be optimistic, driven by the loose capital surface and the downward movement of the market's overall yield center, the speed and explosive force of short-term recovery will not be very strong, and it is recommended to still focus on the participation of selected individual bonds.
