Asia Credit Monday Morning Ideas: OW HDFC AT1; OW LGCHM ’29; AUD corp hybrid with quality yield

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Asia Credit Monday Morning Ideas: OW HDFC AT1; OW LGCHM ’29; AUD corp hybrid with quality yield

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Asia Credit Monday Morning Ideas

OW HDFC AT1; OW LGCHM ’29; AUD corp

hybrid with quality yield

Morning Call

We highlight some of our views, thoughts and trade ideas 08 June 2026

This week we have trade ideas from India financials, Korea corps and AUD corporate. Global Corporate Credit

Asia Pacific

OW HFDC AT1 on high call likelihood and stable operation

We reiterate OW on HDFCB 3.7 Perp with call date of Aug. 25, 2026 (HDFC AT1). The JoyceResearchLiangAnalyst

bond currently still trades below par at 99.5 with YTC/G-spread at 6.0%/232bp, which Merrill Lynch (Singapore)

+65 6678 0408

looks attractive to us. Last week, we had meeting with the bank and discussed the joyce.liang@bofa.com

Chairman exit headline. HDFCB expects the outcome of external review over the case to Lefu Li, CFA

come in over next few weeks. The bank also reiterated the confidence in internal Research Analyst

Merrill Lynch (Hong Kong)

governance and process, as well as the stable daily operations with the growth targets +852 3508 2142

and solid asset quality remaining unchanged (see our equity report: Resilient trends with lefu.li@bofa.com

emerging headwinds; Buy ICICI, HDFC). In terms of the non-call risk, our view (see our Suyang Lu

Research Analyst

report: high call likelihood on the first call date) remained unchanged. We are also OW Merrill Lynch (Hong Kong)

HDFCB'29 on its attractive valuation vs. other Indian seniors and HDFCB'27(MW). (LF. LI) +852suyang.lu@bofa.com3508 5066

OW LGCHM’29; battery drives deleveraging momentum SiriusResearchChanAnalyst

We initiated coverage on LG Chem (LGCHM), which owns 79% stake in LG Energy Merrill+852 3508Lynch3100(Hong Kong)

Solution (LGENSO).