Group 1 - The overall outlook for credit bonds in November remains optimistic, influenced by the new public fund redemption fee regulations and changes in the equity market [1][23] - The credit bond yield curve showed a downward trend in October, particularly after the central bank announced the resumption of government bond trading, leading to a better performance of credit bonds compared to interest rates [2][16] - Historical performance of credit strategies in November since 2021 indicates that most strategies have yielded positive returns, except for the negative impact seen in November 2022 due to a redemption wave [9][12] Group 2 - In October, the strategy of extending duration yielded the best returns among various credit strategies, with city investment bonds outperforming others [4][6] - The yield of 3Y AAA-rated secondary capital bonds decreased from 2.06% to 1.90% by the end of October, reflecting a strong upward trend in credit bonds [16] - The historical percentile rankings for various credit bonds indicate that there is still room for yields to decline, particularly for 5Y secondary capital bonds [22][23] Group 3 - The investment recommendation for November suggests maintaining a relatively optimistic stance on credit strategies, supported by high historical percentiles and a favorable liquidity environment [22][23] - The resumption of government bond trading and overall loose funding rates are expected to continue supporting the upward trend in credit bonds, although the depth of this trend remains to be observed [22][23] - The cost of liabilities for banks has decreased significantly, encouraging increased investment in bonds [22][23]

Group 1 - The core view of the report emphasizes that short-end sinking strategies have outperformed in September 2025, with various credit strategies yielding positive returns due to sufficient coupon income covering capital loss, although the contribution to overall returns was limited [2][3][4] - Historical performance of credit strategies in October since 2021 shows that most strategies have achieved positive returns, with a notable success rate for bullish credit positions in October [10][24] - The report suggests that in the current steep yield curve environment, increasing allocation to medium and long-term credit bonds and utilizing bond repurchase agreements to introduce leverage could significantly enhance the returns of the strategies [10][24] Group 2 - In September 2025, the market was cautious due to concerns over new public fund sales regulations, leading to a tightening of credit bond market sentiment [3][4] - The report highlights that the performance of various credit strategies in September was negatively impacted by rising interest rates, with some strategies recording capital losses exceeding 1% [3][4][5] - The anticipated liquidity support from the central bank's operations in October 2025 is expected to bolster the bullish logic for credit investments, despite potential constraints from institutional behavior and policy impacts [17][24]