APAC Credit Roundup: Weekly Review: Week ended July 17

Research evidence excerpt

APAC Credit Roundup: Weekly Review: Week ended July 17

Soo Chong Lim AC Asia Pacific Credit Research

(852) 2800-7387 20 July 2026 J P M O R G A N

soochong.lim@jpmorgan.com

Last week, earnings from several Taiwan insurers and India’s non-bank finance

companies were in focus. Cathay Life reported decent June earnings, alongside a positive

balance sheet trend. We initiate with a Neutral recommendation on the 5.5% 2041 bond with

a call date in 2036. Offered at z+164bp (SOT+125bp, $97.8, 5.8%), the bond trades more than

30bp behind the 2034 bullet subordinated bond. Separately, FWD Group announced that it

will redeem the US$200mn subordinated perpetual bonds on 14 August 2026, exercising the

call under the IPO call language (see here). The bonds are scheduled for exclusion from JACI

as of July 31 as part of the enhancements to our indices. We have an Overweight

recommendation on the 2035 subordinated bond, offered at z+175bp (SOT+132bp, $99.8,

5.9%). More generally in the insurance sector, we published an overview of solvency regimes

in Asia in a joint report with our equity research colleagues (see here). In India financials,

Piramal Finance reported largely in-line June quarter earnings, benefiting from lower

funding costs on the back of ratings upgrades. With a favorable operating backdrop and a

steady fundamental outlook, we reiterate an Overweight recommendation on the 2028 bonds,

offered at a 6.4% YTW (see our full note here). We also initiated with a Neutral

recommendation on the new IIFOIN 7.6% senior secured 2030 bond. Offering a yield of 7.8%

($99.3, SOT+353bp, z+380bp), it is one of the cheapest among India NBFCs, better

compensating for the concerns around the issuer’s increased headline risk and weaker capital

buffers versus peers.

China IG - A flat week