Group 1 - S&P Global Ratings has revised the outlook on the credit rating of covered bonds issued by Landsbankinn from stable to positive [1] - Covered bonds issued by Landsbankinn are rated at A+ with a positive outlook [1] - This announcement follows a similar rating action by S&P on Iceland, where the long-term rating outlook was also revised from stable to positive [1]

Core Insights - Paramount is set to emerge with $79 billion in debt following its acquisition of Warner Bros. Discovery, which raises concerns about its creditworthiness [2][3][7]. Debt and Financial Structure - The acquisition will result in Paramount absorbing Warner Bros. Discovery's existing debt, which was nearly $55 billion after its spinoff from AT&T, along with an additional $33.5 billion that will be inherited [7][8]. - Fitch Ratings has downgraded Paramount's credit rating to BB+ from BBB- and placed it on a "negative" ratings watch due to uncertainties surrounding the $110 billion deal [3]. - S&P Global Ratings has taken similar actions regarding Paramount's credit rating [4]. Financing and Cost Management - To finance the Warner Bros. Discovery acquisition, Larry Ellison has guaranteed $45.7 billion in equity, while Bank of America, Citibank, and Apollo Global have committed over $54 billion in debt financing [4]. - Paramount plans to restructure approximately $15 billion of Warner Bros. Discovery's existing debt [9]. - The company aims to achieve over $6 billion in cost cuts or "synergies" within three years, which may impact entertainment industry employment, particularly in Los Angeles [10]. Regulatory and Approval Process - The merger is expected to be completed by the end of September, pending approval from Warner Bros. Discovery shareholders and regulatory bodies, including the European Union [6].

Group 1 - Fitch Ratings downgraded Paramount Skydance and Paramount Global's ratings to junk status due to the proposed acquisition of Warner Bros Discovery [1] - The acquisition is valued at $110 billion and is expected to close in the third quarter, backed by $54 billion in debt commitments [1] - Post-acquisition, the combined entity will have a net debt of approximately $79 billion, with Paramount's existing debt at $14 billion as of year-end 2025 [1] Group 2 - Fitch analysts anticipate "materially elevated leverage" for Paramount following the acquisition, with potential credit risks related to the debt-funded structure and limited visibility on financial policy [1] - Competitive pressures within the media sector and continued free cash flow challenges are also factors contributing to the downgrade [1] - Other rating agencies, including Moody's and S&P Global Ratings, have placed Paramount on watch for potential downgrades as well [1]

Core Viewpoint - AM Best has revised the outlooks for Mercury Casualty Group to stable from negative and affirmed their credit ratings based on the assessment of net ultimate losses and reinsurance recoveries following the January 2025 California wildfires [1][4]. Group 1: Credit Ratings and Outlook - The Financial Strength Rating of A (Excellent) and Long-Term Issuer Credit Ratings of "a" (Excellent) have been affirmed for the members of Mercury [2]. - The Long-Term Issuer Credit Rating of "bbb" (Good) for Mercury General Corporation has also been affirmed, with its outlook revised to stable [3]. Group 2: Financial Performance and Losses - For Q1 2025, Mercury General Corporation reported a net loss of $108.3 million due to the wildfires, with net catastrophe losses and loss adjustment expenses totaling $380 million after reinsurance recoverables [5]. - The company recorded gross catastrophe losses of $2.2 billion before taxes, plus an additional $100.6 million for reinstatement premium [5]. Group 3: Reinsurance and Subrogation - Mercury has exhausted its catastrophe reinsurance limits for the 2025 treaty year, necessitating the payment of a reinstatement premium [6]. - The company is pursuing subrogation against Southern California Edison for the Eaton fire, estimating $538 million in recoveries, and has sold subrogation rights for the Palisades fire for $48 million [6]. Group 4: Balance Sheet and Ratios - At year-end 2025, Mercury reported a policyholder surplus of $2.4 billion, an increase of $362 million from the previous year, with a financial leverage of 19.2% and a combined ratio of 96.3% despite the wildfires [7]. - The catastrophe reinsurance program was renewed on July 1, 2025, providing $2.14 billion in limits, an increase from the previous $1.29 billion [7]. Group 5: Members of Mercury Casualty Group - AM Best affirmed the credit ratings and revised the outlooks to stable for various members of Mercury Casualty Group, including American Mercury Insurance Company and Mercury Insurance Company of Texas among others [8].

Core Insights - KBRA has assigned preliminary ratings to eight classes of mortgage-backed notes from Aspire Mortgage Trust 2026-1, a $391.3 million non-prime RMBS transaction [1] Summary by Category Transaction Overview - Aspire Mortgage Trust 2026-1 (SPIRE 2026-1) involves a total of $391.3 million in non-prime residential mortgage-backed securities (RMBS) [1] - The underlying collateral consists of 752 residential mortgages, with fixed-rate mortgages (FRMs) making up 99.2% and hybrid adjustable-rate mortgages (ARMs) comprising 0.8% of the pool [1] Loan Classification - The loans are categorized as follows: - Qualified Mortgages – Safe Harbor (APOR) (27.3%) - Qualified Mortgages – Rebuttable Presumption (APOR) (3.4%) - Non-Qualified Mortgages (Non-QM) (16.8%) - Exempt from Ability-to-Repay/Qualified Mortgage (ATR/QM) rule (52.5%) due to non-consumer loan origination [1] Rating Methodology - KBRA's rating approach included a loan-level analysis using its Residential Asset Loss Model (REALM), third-party loan file due diligence, cash flow modeling of the transaction's payment structure, and reviews of key transaction parties [1] - The analysis also involved an assessment of the transaction's legal structure and documentation, as detailed in KBRA's U.S. RMBS Rating Methodology [1]

Core Viewpoint - Landsbankinn reported solid operating results for 2025, with a profit of ISK 38 billion and a return on equity of 11.6%, reflecting stable operations in a challenging economic environment [1][3]. Financial Performance - Profit for 2025 was ISK 38 billion, slightly up from ISK 37.5 billion in 2024 [3]. - Return on equity (ROE) was 11.6% in 2025, down from 12.1% in 2024 [3]. - The cost-income ratio was 34.3%, among the lowest globally for comparable banks [1][3]. - Net interest income reached ISK 62.1 billion, while net commission income was ISK 12.6 billion, with a net interest margin of 2.7% [3]. - Total taxes paid by the Bank amounted to ISK 19 billion [3]. Dividend Policy - The Board of Directors plans to propose a dividend payment of approximately ISK 19 billion, representing around 50% of the year's profit [1][3]. - A special dividend payment is also under consideration for later in the year [1]. Lending and Deposits - Lending grew by ISK 76.9 billion, or 4.3%, while customer deposits increased by ISK 20.9 billion, or 1.7% [3]. - The total capital ratio at year-end was 24.8%, exceeding the Financial Supervisory Authority's requirement of 20.3% [3]. Customer Engagement and Services - Landsbankinn maintained a strong service network with 34 branches and service outlets, recording approximately 863,000 branch visits and over 250,000 phone calls to the Customer Service Centre [6]. - The Bank's focus on digital corporate banking services led to increased usage of technological solutions and a 10% rise in fee and commission income [7]. Market Position and Credit Rating - S&P upgraded Landsbankinn's credit rating to A- with a stable outlook, enhancing its competitiveness in international capital markets [3]. - The Bank issued FX bonds equivalent to approximately ISK 135 billion to refinance older funding and strengthen credit ratings [3][4]. Sustainability Initiatives - The Bank published its sustainability disclosure, reporting a 27% reduction in carbon emissions from its credit portfolio since 2019 [3].

1. Report Industry Investment Rating - No information provided regarding the report industry investment rating 2. Core Viewpoints - The Asian IG space tightened by 2 - 3bps this morning, while some bonds like KUAISH 31 - 36s and SKBTAM 29 were 1 - 2bps wider [3] - The IPT of new SHUION 29 at 10.625% is considered fair, and the proposed new issue and tender offer by Shui On Land should lengthen its maturity profile and reduce near - term refinancing pressure [7][9] - In the Chinese properties space, CHJMAO, DALWAN, FUTLAN/FTLNHD, GRNCH, and LNGFOR are favored [9] 3. Summary by Relevant Catalogs Trading Desk Comments - Last Friday, the new SNBAB 6.15 Perp was down 0.4pt from RO at par; KUAISH 31 - 36s opened heavy and initially widened 3 - 5bps, with the 5yr tranche closing at RO level and the 10yr tranche 4bps wider [2] - MEITUA curve traded softly, widening 1 - 2bps, while FRESHK curve outperformed and tightened 5 - 8bps; TW lifers were 1 - 2bps wider [2] - SHUION launched a tender offer for USD400mn SHUION 26 and circulated 10.625% IPT for a new USD bond; NWDEVL/VDNWDL complex was up 0.2 - 1.0pt; FAEACO 12.814 Perp/LASUDE 26 gained 0.5 - 0.6pt [2] - EHICAR 26 - 27 increased by 0.4 - 0.5pt; DALWAN 28 was 0.2pt lower; VNKRLE 27 - 29 rose 2.4 - 2.5pts; LNGFOR 27 - 32 increased by 0.4 - 0.8pt [2] - In the Korean space, KDB 27 - 31s and EIBKOR 29 FRNs tightened 1 - 2bps; AU and JP IG credits closed 1 - 4bps tighter; in the Middle East, there was block - size trading on FABUH 34s and PBs were buying FABUH FRNs; in SE Asia, BBLTB sub - curve was 2 - 5bps tighter; GLPSP Perps rose 1.8pts [2] - IHFLIN 27 - 30s/VEDLN 28 - 33s edged 0.2 - 0.8pt higher; MEDCIJ 26 - 30s and the ReNew Energy complex were unchanged to 0.4pt higher [2] Morning Market Update (19 Jan 2026) - Asian IG space was 2 - 3bps tighter this morning, KUAISH 31 - 36s and SKBTAM 29 were 1 - 2bps wider; SOFTBK 65/EHICAR 26 were down 0.6 - 0.7pt; PMBROV 30 edged 0.6pt higher [3] - SHUION 26 was 2.2pts higher this morning; the IPT of new SHUION 29 at 10.625% is fair [3][7] - China Oil and Gas launched a tender offer for CHIOIL 4.7 06/30/26 of USD361mn at par and mandated concurrent USD bond issuance, with the offer expiring on 26 Jan '26 4pm GMT, and the bond was unchanged this morning [3] Top Performers and Underperformers - Top performers include VNKRLE 3.975 11/09/27 (up 2.5), VNKRLE 3 1/2 11/12/29 (up 2.4), ADSEZ 5 08/02/41 (up 2.0), GLPSP 4 1/2 PERP (up 1.8), COGARD 5 12/31/32 (up 1.8) [4] - Top underperformers include TENCNT 3.29 06/03/60 (down 0.8), CNPCCH 5.95 04/28/41 (down 0.7), HAOHUA 3.7 09/22/50 (down 0.7), APAAU 5 3/4 09/16/44 (down 0.7), SINOPE 3.68 08/08/49 (down 0.7) [4] Macro News Recap - Last Friday, S&P was down 0.06%, Dow was down 0.17%, and Nasdaq was down 0.06%. UST yield was higher, with 2/5/10/30 - year yields at 3.59%/3.82%/4.24%/4.83% [6] Desk Analyst Comments on SHUION - Shui On Land proposes to issue a 3NC1.5 Reg S USD senior unsecured bond (unrated) guaranteed by SOL, and the IPT of new SHUION 29 at 10.625% is fair considering peer valuation and tenor differential [7] - The net proceeds of the new bond will fund the tender offer for SHUION 5.5 06/29/26 of USD400mn, with a tender price of 100.25. SOL may prioritize holders subscribing to the new bond, and tender settlement is conditional on new bond issuance [8] - Despite sector headwinds, SOL honors offshore obligations, having redeemed two USD bonds totaling USD990mn since Aug '24. The new issue and tender offer should lengthen maturity and reduce refinancing pressure. The analyst is neutral on SHUION 5.5 06/29/26 [9] Offshore Asia New Issues - No offshore Asia new issues were priced today [13] - Shui On Land has a pipeline to issue a USD bond with a 3NC1.5 tenor, 10.625% coupon, and unrated [14] News and Market Color - On last Friday, 89 credit bonds were issued onshore with an amount of RMB63bn. Month - to - date, 948 credit bonds were issued with a total of RMB755bn raised, a 29.3% yoy decrease [17] - Fitch upgraded DWCM and Wanda Commercial Properties (Hong Kong) to CC from RD [17] - Media reported eHi Car plans a LME in 1H26 for EHICAR 7 09/21/26 of USD269mn and seeks RMB300 - 500mn syndicated loans [17] - ReNew Energy Global to hold investor meetings/calls to market USD 144A/Reg S bonds [17] - Sands Macao launched 'Pearl Gaming Room' targeting mass - market bet sizes [17] - Media reported Vanke reassured bondholders it can make 40% upfront payment for domestic bonds [17]

Core Viewpoint - Multitude AG has received a stable outlook from Fitch Ratings, affirming its Long-Term Issuer Default Rating (IDR) at 'B+' and upgrading its standalone credit profile (SCP) to 'bb-' from 'b+' [1] Group Summary - Multitude AG is a European FinTech company providing digital lending and online banking services to consumers, small and medium-sized enterprises, and other FinTechs [2] - The company operates through three independent business units: Consumer Banking (Ferratum), SME Banking (CapitalBox), and Wholesale Banking (Multitude Bank) [2] - Multitude employs over 700 people across 25 countries and offers services in 17 countries, achieving a combined turnover of 274 million euros in 2024 [2] - The company was founded in Finland in 2005, is registered in Switzerland, and is listed on the Prime Standard segment of the Frankfurt Stock Exchange under the symbol 'MULT' [2] Rating Summary - Fitch Ratings has upgraded Multitude Bank PLC, a subsidiary of Multitude AG, to 'BB-' [1] - Multitude AG's senior unsecured notes have been affirmed at 'B+' with a Recovery Rating of 'RR4' [1] - The subordinated hybrid perpetual capital notes of Multitude AG have been rated 'B-' with a Recovery Rating of 'RR6' [1]

Group 1 - The article focuses on National Storage Affiliates Trust (NSA) and aims to provide a credit rating using Moody's methodology [2] - The investment group Trade With Beta, led by Denislav Iliev, specializes in identifying mispriced investments in fixed-income and closed-end funds [3] - Trade With Beta offers features such as frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of over 1200 equities, IPO previews, and hedging strategies [3] Group 2 - The importance of timing in trading closed-end funds and the potential for directional and arbitrage opportunities due to market price deviations is emphasized [1]

Core Viewpoint - Netflix is planning to borrow heavily again to finance a $72 billion acquisition of Warner Bros. Discovery Inc, despite its previous reputation as "Debtflix" due to high debt levels [2][10] Financial Position - Netflix's balance sheet has improved significantly since the pandemic, allowing it to potentially increase its bid in a competitive acquisition scenario while maintaining an investment-grade rating [2][7] - The company currently has $59 billion in temporary debt financing and plans to replace it with up to $25 billion in bonds, $20 billion in delayed-draw term loans, and a $5 billion revolving credit facility [3] Acquisition Context - Paramount Skydance Corp. has launched a hostile takeover bid for Warner Bros. valued at over $108 billion, which poses a competitive challenge to Netflix's acquisition efforts [4] - The acquisition could face antitrust scrutiny, and if blocked, Netflix would incur a $5.8 billion breakup fee [6] Debt and Ratings - Analysts from Morgan Stanley express concerns about rising debt levels, suggesting potential vulnerability to a downgrade from investment-grade status [5] - Moody's has affirmed Netflix's A3 rating, citing strong operating performance and the value of acquiring significant intellectual property, although the outlook has shifted to "stable" from "positive" [7] Future Projections - If the acquisition proceeds, Netflix's debt could rise to approximately $75 billion, but it is expected to generate around $20.4 billion in earnings available to pay interest next year [8] - The net debt-to-EBITDA ratio is projected to be about 3.7 times initially, improving to the mid-2x range by 2027, indicating a strong credit profile [9] Historical Context - Netflix's previous heavy borrowing began in 2009, transitioning from DVD rentals to streaming, with debt peaking at $18.5 billion before the pandemic [9] - The pandemic significantly boosted Netflix's cash flow, leading to a current generation of over $6.9 billion in free cash flow annually [10] Capacity for Acquisition - Analysts believe Netflix has the capacity to undertake a large acquisition, with a strong balance sheet that can accommodate increased debt levels [11]