Joining us now, Ali Debage, uh Janice Henderson, uh investors chief investment officer and just beautiful orange stuff everywhere. Nothing to do with Bitcoin. Uh but the the little and is Janice Henderson aligned with its clients.It is indeed. Yeah. Okay.Yeah. We pride ourselves with working with our clients and delivering for their their missions. And I'm excited to talk to you about something we don't always talk about and that is uh fixed income. you want to talk about fixed income or or you absolutely d ...

Core Viewpoint - The Federal Reserve's potential decision to cut interest rates presents an opportunity for investors to reassess their fixed income allocations, emphasizing the advantages of active investing over passive bond index strategies [1][2]. Group 1: Active vs. Passive Investing - Active investing is positioned as a superior strategy in the current fixed income landscape, allowing investors to better navigate changes in interest rates and bond market dynamics [2][5]. - Passive bond index strategies may struggle to maintain their allocations effectively, particularly when bonds are called early, leading to potential underperformance [2][3]. Group 2: Performance Insights - Active managers can leverage fundamental research and insights to outperform bond index performance, especially in high-yield segments where deeper scrutiny of issuers is crucial [3][4]. - T. Rowe Price's active bond ETF, TAGG, has demonstrated a performance advantage, outpacing the Bloomberg Aggregate Bond Index by over 30 basis points on average over the last three years, after accounting for fees [4]. Group 3: Long-term Benefits - In the long term, active investing strategies can enhance bond portfolio performance, making them appealing for investors looking to adapt to changing interest rates or seeking better returns from debt [5].

Report Summary Industry Investment Rating - No industry investment rating is provided in the report. Core Viewpoints - The fixed - income market shows mixed performance. New issues generally tightened, while the secondary IG space was largely unchanged. Greater China high - beta credits were mostly stable, and there were price movements in various bonds across different regions [2]. - LGFVs had a mixed performance, with demand for higher - grade USD issues but lackluster performance for higher - yielding names due to supply jams. Trading volumes were thin ahead of US consumer inflation data [3]. Section Summaries Market Performance - **Yesterday's Performance**: The new NSINTW 5 7/8 03/17/41 tightened up to 15bps from RO at T + 185 and closed 10bps tighter. Other TW lifers CATLIFs/SHIKON/FUBON closed 1 - 2bps tighter. The new KHFC 3 7/8 09/17/30 and the new KOMATS 4.196 30 tightened 2 - 3bps. Secondary IG space was largely unchanged. In Chinese properties, VNKRLE 27 - 29s were down 0.5pt, and GRNLGR 28 - 31s were 0.3 - 0.5pt lower. LNGFOR 28 - 32s were 0.2 - 0.3pt higher. Japanese insurance hybrids and AT1s were up 0.3pt, and their Yankee counterparts were 0.1pt firmer. The new SMPHPM 4.75 09/16/30 was 0.1pt higher than RO at 99.8. PTTGC 51 - 52s tightened 1 - 13bps [2]. - **This Morning's Performance**: The new NSINTW 5 7/8 03/17/41 tightened another 7bps. The rest of TW lifers CATLIFs/SHIKON/FUBON were 2 - 5bps tighter. The recent HYUELE 28 - 30s were 1 - 2bps tighter. BBLTB sub - curve tightened 5bps. The recent MUFG Perp/SUMILIF 55/FUKOKU rose 0.5 - 1pt. HYSAN 7.2 PERP was up 0.5pt. TOPTBs were unchanged [4]. - **Top Performers and Underperformers**: Top performers included CCAMCL 5 02/08/48 (up 3.0), FAEACO 12.814 PERP (up 2.9), etc. Top underperformers included BIMLVN 7 3/8 05/07/26 (down 0.7), VNKRLE 3 1/2 11/12/29 (down 0.5), etc. [5] Macro News - On Thursday, S&P (+0.85%), Dow (+1.36%) and Nasdaq (+0.72%) were higher. The US Aug'25 Core CPI was +0.3% mom, and the US CPI was +2.9% yoy, both in line with market expectations. The US Aug'25 CPI was +0.4% mom, higher than the market expectation. The US Initial Jobless Claims was +263k, higher than the prediction. UST yield was lower, with 2/5/10/30 - year yields at 3.52%/3.59%/4.01%/4.65% [7]. Company - Specific Analysis (HYSAN) - Hysan raised junior subordinated 5NC2 notes of USD17mn, rated Ba1 by Moody's, callable at 103.375 in Sep'27, with a coupon rate of 6.75% and deferrable and cumulative coupon [8]. - The small private placement is to build a cushion of junior securities to keep the rating of HYSAN 7.2 PERP at IG. In 1H25, Hysan's turnover and EBIITDA grew 2.1% and 1.4% yoy to HKD1.7bn and HKD1.3bn respectively. Occupancy rates of retail/office/residential were 94%/92%/70% as of Jun'25. Its liquidity profile is solid with cash to ST debts at 2.3x, and it has a capital recycling plan of HKD8bn over the next 5 years. The net gearing ratio (perp as debt) was 33% as of Jun'25 [9][10]. - Analysts are neutral on HYSANs on valuation but consider HYSAN 7.2 PERP to offer the best risk - return profile compared to other Hysan bonds [11]. New Issues - There were no offshore Asia new issues priced or in the pipeline on the reporting day [12][13]. - Regarding onshore primary issuances, 101 credit bonds were issued yesterday with an amount of RMB160bn. Month - to - date, 658 credit bonds were issued with a total amount of RMB638bn, representing an 18.6% yoy increase [15]. Other News - Adani and Vedanta are bidders for bankrupt GVK Energy. Alibaba uses its own microprocessors for AI model training. BHP will divest a 15% stake in iron ore deposit. Evergrande's property management arm received non - binding bids. Fosun signed a USD910mn sustainability - linked syndicated loan. Meituan plans to issue dim sum bonds. POSCO International signed a deal for LNG import. Pertamina plans subsidiary reorganization. PTT Global Chemical issued USD1.1bn unsecured subordinated perp. Reliance boosted asset - backed notes size. Yuexiu Property signed a HKD200mn term loan facility agreement [15].

JOUMANNA: GOOD MORNING. THIS IS HORIZONS MIDDLE EAST & AFRICA. GLOBAL LONG BONDS ARE SLUMPING ON WORRIES OVER DEVELOPED MARKET BUDGETS AND A RUSH OF CORPORATE DEBT SALES.THE U.S. 30 YEAR IS CLIMBING TOWARDS 5%. PRESIDENT XI JINPING PARADES CHINESE MILITARY POWER WITH A DISPLAY OF WEAPONS WITH GLOBAL LEADERS INCLUDING PUTIN AND KIM JONG-UN IN ATTENDANCE. TURKISH ASSETS PLUNGE AFTER A COURT ORDER'S REMOVAL OF THE MAIN OPPOSITION CHP'S ISTANBUL ADMINISTRATION.8:00 A. M. ACROSS THE EMIRATES.WHAT A GLOBAL ROAD F ...

1. Report Industry Investment Rating - No information provided on the report industry investment rating 2. Core Viewpoints of the Report - The report provides a comprehensive update on the fixed - income market, including bond price movements, macroeconomic news, and company - specific analyses. It also offers insights into the Chinese economy and makes predictions on future policy adjustments [2][7][20] - In the fixed - income market, different bonds show various price changes, influenced by factors such as market sentiment, company performance, and macroeconomic conditions [2][4] - Regarding the Chinese economy, there are signs of mild reflation in upstream sectors, but the economic growth may face slowdown pressure in Q4 2025, which could lead to demand - side stimulus and supply - side capacity reduction policies [20][23] 3. Summary by Relevant Catalogs 3.1 Trading Desk Comments - Last Friday, recent IG new issues were overall unchanged to 1bp wider. There were buying flows on HOKKEL 4.587 09/04/30 and two - way flows on OCBCSP 4.55 35s. Some bonds widened, tightened, or remained unchanged. In Chinese properties, some bonds were 0.1 - 0.6pt higher. There were selling flows on front - end Chinese banks/leasing names. Korean corps widened, and S&P changed SAMTOT rating outlook to negative. In Japan, there were selling flows on MUFG/NOMURA curves, and Japanese insurance hybrids edged up. In SEA, GLPSP bonds continued to grow [2] - This morning, there were selling flows for HSBC/MIZUHO/SUMIBK 5 - 6yr floaters. PTTGC 51 - 52s and TOPTB 49 were 0.7 - 2pts higher. FAEACO 12.814 Perp was 1.1pts lower. There were buyers for CNH short - term bonds in LGFVs, and ZHOSHK 28 was largely unchanged [4] 3.2 Macro News Recap - Last Friday, S&P (-0.64%), Dow (-0.20%), and Nasdaq (-1.15%) were lower. The US Jul'25 Core PCE Price Index was +0.3% mom/+2.9% yoy, in line with market expectations. UST yield was lower while 10/30 yr UST yield was higher, with 2/5/10/30 yield at 3.59%/3.68%/4.23%/4.92% [7] 3.3 Desk Analyst Comments - Fubon Life proposes to issue 10.25yr USD T2 bond. The fair value of the new FUBON is considered to be T + 95 - 100, adjusted for tenor and new issue premiums compared to its peers. Fubon Life's credit profile is slightly better than CATLIF in terms of profitability and capital strength [8][9][12] - ZHOSHK's credit profile remains solid. Despite the negative gross margin of new car sales in 1H25, it has consistent positive FCF generation, reducing debts, and low near - term refinancing pressure. The report maintains a buy on ZHOSHK 5.98 01/30/28 [17][18] 3.4 China Economy - China's manufacturing PMI edged higher in August, with improvements in production and demand. There is mild reflation in upstream sectors due to the anti - involution campaign. Non - manufacturing PMI picked up as the service sector recovered, but construction extended its weakness. The economic growth may face slowdown pressure in Q4 2025, and the report expects a 10 bps LPR and 50 bps cut, along with possible transfer payment policies [20][21][23] 3.5 Offshore Asia New Issues - There were no offshore Asia new issues priced or in the pipeline today [25][26] 3.6 News and Market Color - Last Friday, 56 credit bonds were issued onshore with an amount of RMB30bn. In Aug'25, 2,193 credit bonds were issued with a total amount of RMB1,833bn, an 8.9% yoy decrease. There are also various company - specific news such as Alibaba's adjusted EBITDA fall, Bank of China's net interest income drop, etc. [27][31]

Market Trends & Fed Influence - The market is influenced by the Federal Reserve's independence, which impacts interest rates and financial markets [3] - Debates about whether the Federal Reserve is dovish or hawkish are ongoing and impact portfolio managers' decisions [5] - Bond market indicators, including the yield curve, inflation expectations, and currency markets, are key factors in shaping the market outlook [5] Investment Strategy & Asset Allocation - Vanguard believes US exceptionalism has a time stamp, suggesting diversification outside the US is prudent, regardless of AI outlook [7] - Fixed income market is more compelling than it has been in 15-20 years, offering opportunities for active risk-taking [9] - Bonds are back, offering higher coupons and diversification benefits, making them attractive even for those skittish on the equity market [10] - Intermediate exposure is recommended as a starting point for Treasury investments, cautioning against short duration strategies [13] Bond Market Opportunities - Many bonds have outperformed the US equity market over the past 25 years [8] - The fixed income market presents compelling opportunities for returns and diversification [11] - Consider the re-entry point when the Federal Reserve eases, as it's a challenging aspect of tactical investing [14]

Group 1 - The Conservative Income Portfolio targets value stocks with high margins of safety and aims to reduce volatility using well-priced options [1] - The Enhanced Equity Income Solutions Portfolio is designed to generate yields of 7-9% while minimizing volatility [1] - Trapping Value offers Covered Calls and focuses on capital preservation through lower volatility income investing [2][3] Group 2 - The team at Trapping Value has over 40 years of combined experience in generating options income while emphasizing capital preservation [3] - The Conservative Income Portfolio operates in partnership with Preferred Stock Trader, featuring two income-generating portfolios and a bond ladder [3]

Core Insights - The article emphasizes the importance of a holistic approach to investment recommendations, considering the entire investment ecosystem rather than evaluating companies in isolation [1]. Group 1: Analyst Background - Michael Del Monte is a buy-side equity analyst with over 5 years of experience in the investment management industry [1]. - Prior to his current role, he spent over a decade in professional services across various industries, including Oil & Gas, Oilfield Services, Midstream, Industrials, Information Technology, EPC Services, and Consumer Discretionary [1]. Group 2: Investment Philosophy - Investment recommendations are based on a comprehensive understanding of the investment ecosystem, highlighting the interconnectedness of various sectors and companies [1].

Report Industry Investment Rating - Not provided Core Viewpoints - CFAMCI's 1H25 net profit is expected to increase up to 16.3% yoy to RMB6.2bn, with growth mainly due to core business revenue increase, financing cost reduction, and despite asset impairment charges. The higher net profit is expected to boost capital adequacy and lower the leverage ratio. CFAMCIs remain top picks in the Chinese AMC space [7][8][9] - Hongqiao announced a buy - back of 10.2mn shares, which is positive for its CBs and largely neutral for straight bonds. The company maintains a neutral stance on HONGQIs based on valuation [12] Summary by Directory Trading Desk Comments - Asia IG space was unchanged to 3bps tighter yesterday. In Chinese IG, WB 30s tightened by 2bps, TENCNT 38 - 51s/HAOHUA 30/49 were 1bp tighter. Korea IG HYNMTR/LGENSO belly was 1 - 3bps tighter. In financials, HK CHIYBK 32 was 0.4pt higher, JP MUFG 44s were 0.6pt lower. TH banks were unchanged to 2bps tighter. There were small selling on BBLTB 34/40s T2 and better buying on BBLTB senior. STANLN 36s were 2bps wider. In lifers, SHIKON 35 was 1 - 2bp tighter, TYANLI 35 was 0.1pt lower. In HK, CTFSHK 29 was 1.6pt higher, NWDEVL 5.25 Perp/6.25 Perp were 0.3 - 0.4pt higher, HYSAN 4.85 Perp up 0.7pt. In Chinese HY, BTSDF 28 down 0.4pt, WESCHI 26 was 0.1pt lower. In Chinese properties, CHJMAO 29 and CHJMAO Perp were 0.1 - 0.6pt higher, LNGFOR 28/32 were 0.1 - 0.2pt lower, ROADKG 29 - 30 and ROADKG Perps down 0.2pt. In SEA, VLLPM 27 - 29s were 0.2 - 0.9pt higher, VEDLN 29 - 33s were 0.1 - 0.2pt higher, GLPSP Perps down 0.3 - 0.6pt [2] - This morning, the belly of HYNMTR were 2 - 3bps tighter. There were selling in STANLNs, JP lifers/HYSAN/CPREIT. HYSAN 4.85 Perp down 0.7pt, CDBFLC 30 was 1 - 2bps wider, NWDEVL 30 was 0.3pt higher. CFAMCI: 1H25 net profit to increase up to 16.3% yoy to RMB6.2bn, CFAMCI 5.5 47 down 0.5pt this morning while the rest were unchanged. HONGQI: Buy - back of 10.2mn shares, HONGQI 7.05 28 down 0.1pt this morning [3] Top Performers and Underperformers - Top Performers: CTFSHK 4 1/4 06/27/29 up 1.6, TENCNT 3.68 04/22/41 up 1.0, VLLPM 9 3/8 07/29/29 up 0.9, HYSAN 4.85 PERP up 0.7, CHJMAO 4 1/4 07/23/29 up 0.6 [4] - Top Underperformers: GARUDA 6 1/2 12/28/31 down 1.4, TSIVMG 1.55 12/17/29 down 1.0, TAISEM 3 1/8 10/25/41 down 0.6, GLPSP 4.6 PERP down 0.6, MUFG 4.7 03/10/44 down 0.6 [4] Macro News Recap - Macro: S&P (-0.01%), Dow (-0.08%), and Nasdaq (+0.03%) were mixed on Monday. UST yield was higher, with 2/5/10/30 yield at 3.77%/3.86%/4.34%/4.94% [6] Desk Analyst Comments - CFAMCI's 1H25 net profit growth is due to core business revenue increase, financing cost reduction, and despite asset impairment charges. The company's focus on high - quality investments and diverse funding channels support profit growth, and the higher net profit is expected to boost capital adequacy and lower the leverage ratio [7][8] - The company maintains a buy on CCAMCL 4.4 Perp and a neutral stance on GRWALL 7.15 Perp. It prefers CFAMCI 3.875 11/13/29, CFAMCI 3.375 02/24/30, and CFAMCI 3.625 09/30/30 within the CFAMCI curve [9] Hongqiao Analysis - Hongqiao announced a buy - back of 10.2mn shares for cHKD234mn, with a latest mandate of no less than HKD3bn. The buy - back aims to minimize dilution as its o/s USD300mn CB due Jan'26 will be converted into shares. It is positive for CBs and largely neutral for straight bonds. The company maintains a neutral stance on HONGQIs [12] Offshore Asia New Issues - Priced: DBS Bank issued USD2000mn with a 3 - year tenor at 3.989%, Zhangzhou Yuanshan Development issued USD22mn with a 3 - year tenor at 7.0% [13] - Pipeline: Ganzhou Urban Investment Holding plans a 3 - year issue at 5.4%, Tongling State - owned Capital Operation Holding Group plans a 3 - year issue at 5.1% [14] News and Market Color - Onshore primary issuances: 97 credit bonds were issued yesterday with an amount of RMB69bn. Month - to - date, 1,208 credit bonds were issued with a total amount of RMB1,081bn, a 0.2% yoy decrease - Other news: COGARD extended RSA fee deadlines, FUTLAN/FTLNHD obtained bourse approval for onshore ABS offering, HYSAN completed the redemption of USD850mn HYSAN 4.1 Perp, HYUELE repaid KRW3.4tn loans, LGELEC started a voluntary retirement program [15] - Other corporate news: NIO to expand into Singapore, Uzbekistan, and Costa Rica; PTTGC eyes THB30bn from non - core assets monetization; Rakuten to start satellite - based services; Road King's loss to widen; SoftBank to acquire a stake in Intel; Tongyang Life to redeem USD300mn TYANLI 5.25 Perp; Vedanta Ltd to consider second interim dividend; Hindustan Zinc to set up a tailings reprocessing plant [21]

Group 1 - The Federal Reserve may consider cutting interest rates in September 2025, which could positively impact fixed income investments [1] - There are various ETFs and closed-end funds (CEFs) that focus on fixed income, providing potential investment opportunities [1] Group 2 - The investment group "Hidden Dividend Stocks Plus" seeks solid income opportunities with dividend yields ranging from 5% to over 10%, supported by strong earnings [2] - The portfolio managed by "Hidden Dividend Stocks Plus" can include up to 40 holdings at a time, along with additional resources like a dividend calendar and trade alerts [2] Group 3 - Robert Hauver, known as "Double Dividend Stocks," has extensive experience in finance and investing, focusing on undercovered and undervalued income vehicles [3]