Group 1: Report Overview - The report is a fixed - income research report released on September 3, 2025, written by analysts Liang Weichao and Li Shukai [1][2][6] Group 2: August Credit Bond Market Review - In August, the credit bond market was mainly in adjustment, with overall larger declines than interest rates, showing differentiation in duration and variety liquidity. The market can be divided into two stages: a sharp decline from late July to early August followed by a recovery, but continuous adjustment from the second week of August due to the stock - bond seesaw effect [2][11] - Ultra - long - term credit bonds performed the weakest in August, with most declines exceeding those of the same - term interest - rate bonds. Among them, ultra - long secondary and perpetual bonds with better liquidity had the lowest declines, while ultra - long urban investment bonds with the worst liquidity had larger declines [2][12] - From the perspective of curve shape, the steepness of the 1 - 2 - year and 2 - 3 - year periods for all ratings is high. After the major adjustment in August, the yield curve is steeper, with room to flatten the curve. For example, for AA+ medium - term notes, the slopes of the 1 - 2 - year, 2 - 3 - year, and 3 - 5 - year intervals are 0.1302, 0.099, and 0.0900 respectively; for AA urban investment bonds, they are 0.1497, 0.1313, and 0.1205 respectively [3][15] - The performance of different credit strategies in August varied. Only the short - duration weak - asset sinking strategy was relatively successful, while the ultra - long - term credit strategy performed the worst [14] - The secondary and perpetual bond market also weakened in August, but the decline was not significantly higher than that of general credit bonds, and the characteristic of being a volatility amplifier was not prominent. The 2 - 4 - year part of the curve is steeper, and the yields of 4 - year and above parts have exceeded the previous high in late July [3][20][21] Group 3: Institutional Behavior in August - In August, the overall buying of credit bonds by major buyers was weaker than last year. Bank wealth management and insurance had relatively larger allocation efforts. Bank wealth management and other products had a net secondary purchase of about 180 billion yuan of credit bonds, and insurance had a net purchase of 56.2 billion yuan. Public funds were net sellers [4][23] Group 4: Credit Bond ETF Performance in August - Since August, credit bond ETF products have not performed well, with weak scale growth and net - value performance. The second batch of science and technology innovation ETFs may bring marginal benefits to the market [4][25] Group 5: Outlook for September - In September, credit bonds have certain investment value after continuous market adjustments. The sinking strategy has opened up bond - selection space, with about 43% of public credit bonds having a valuation above 2.0%. Representative issuers include Xi'an High - tech, Tianjin Urban Construction, and Hebei Iron and Steel Group [4][26] - From the riding strategy perspective, 2 - 3 - year general credit bonds and 3 - 4 - year secondary and perpetual bonds have good opportunities. For the ultra - long - term strategy, caution is still recommended as the ultra - long - term bonds have had high declines since August and it is hard to say they have stabilized. Allocation investors with matched liability ends can consider entering the market, while it is not a good time for trading investors due to high liquidity risks [4][26]