Asia Credit Monday Morning Ideas: OW BNKEA TLAC bond; switch to CGRNEG from RPVIN '31; OW SHUION '29

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Asia Credit Monday Morning Ideas: OW BNKEA TLAC bond; switch to CGRNEG from RPVIN '31; OW SHUION '29

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Asia Credit Monday Morning Ideas

OW BNKEA TLAC bond; switch to CGRNEG

from RPVIN '31; OW SHUION '29

Rating Change - Credit

We highlight some of our views, thoughts and trade ideas 11 May 2026

This week we have trade ideas from Banks, Renewables and Property sectors. Global Corporate Credit

Asia Pacific

OW new BNKEA TLAC bond on good RV vs. tier-2

Asia Pacific Credit Rsch Grp

We reiterate OW the new total loss-absorbing capacity (TLAC) bond from BNKEA, Merrill Lynch (Singapore)

BNKEA 5.375 2032 nc’31. The bond trades at 123p/5.2% for G-spread/yield to call, Joyce Liang

which looks attractive vs. BNKEA 6.75 2034 nc’29 (tier-2, UW). With one notch higher Research Analyst Merrill Lynch (Singapore)

credit rating and better bond structure, BNKEA’32 trades at similar spread level vs. +65 6678 0408

BNKEA’34. However, the TLAC bonds are generally trading 20bp-50bp tighter globally, joyce.liang@bofa.com

(see TLAC senior vs. tier-2: pricing in Japan, Europe, and U.S.) Thus, we think BNKEA’32 Sirius Chan Research Analyst

is more attractive. Further, BNKEA tier-2 complex trades close to all-time-tight now, but Merrill Lynch (Hong Kong)

its TLAC complex was still c.30 wider than the level in 2H25. Thus, we see better upside sirius.chan@bofa.com

for BNKEA’32 with fair value at c. 100bp, in our view. For more details, please see XiangResearchGao,AnalystCFA

Structure risk mispriced: switch idea from BNKEA Tier-2 to the new BNKEA’32. (LF. LI) Merrill Lynch (Singapore)

xiang.gao@bofa.com

Switch to CGRNEG ‘33 from RPVIN ‘31, MW RPVIN ‘28 YusukeResearchIkedaAnalyst

In Indian renewable complex, we recommend switching to CGRNEG ‘33 (upgrade to OW BofAS Japan