Core Insights - Recent CEO succession races have resulted in substantial compensation packages for executives who were not selected, indicating a trend in retaining top talent [2][3]. Group 1: CEO Succession and Compensation - Disney awarded Dana Walden a one-time stock grant of $5.26 million and an annual target compensation of approximately $27 million after selecting Josh D'Amaro as CEO [2]. - Morgan Stanley provided special bonuses valued at $20 million each to Ted Pick and his rivals Andy Saperstein and Dan Simkowitz following the CEO appointment [2]. Group 2: Retention Strategies - High compensation packages reflect the importance of retaining high-performing executives who possess significant institutional knowledge and relationships [3]. - A report from FW Cook indicates that retention grants have a strong but limited effect, typically lasting around two to three years due to vesting schedules [4]. Group 3: CEO Turnover Trends - FW Cook's report analyzed 100 large-cap U.S. companies, finding that 47 changed CEOs between 2016 and 2020, with retention grants given to 39 executives who did not become CEO [5]. - Companies were more likely to offer retention grants when hiring external CEOs, suggesting heightened concern over executive turnover with outsiders compared to internal promotions [5].

Market Performance - Asian markets ended mostly higher, with Japan's Nikkei average rising by 0.16 percent to 58,850.27, marking a record close despite concerns in the chip sector [4] - China's Shanghai Composite index increased by 0.39 percent to 4,162.88 ahead of the upcoming Two Sessions meeting, where economic targets and policy plans are expected to be outlined [3] - Hong Kong's Hang Seng index surged by 0.95 percent to 26,630.54, driven by anticipation of upcoming earnings releases [3] - Seoul stocks fell by 1 percent to 6,244.13, influenced by a muted reaction to Nvidia's earnings [6] - Australian markets ended higher, with the S&P/ASX 200 inching up by 0.25 percent to 9,198.60, supported by gains in the mining sector [6] - New Zealand's S&P/NZX-50 index closed up 0.38 percent at 13,722.97, reversing earlier losses [7] Economic Indicators - Japan's industrial output rose by 2.2 percent in January from the previous month, marking the first expansion in three months [5] - Retail sales in Japan increased by 1.8 percent year-on-year, rebounding from a 0.9 percent decline in December [5] - U.S. data indicated a slight increase in new applications for jobless benefits last week [7] Company-Specific News - Baidu's quarterly profit dropped by 42 percent, yet the stock ended flat [3] - HSBC's annual profits for 2025 exceeded expectations, leading to a 1.6 percent increase in its stock [3] - Sony shares soared by 7.2 percent following the expansion of its share buyback program [5] - Nvidia's strong earnings and guidance did not alleviate investor concerns regarding the sustainability of the AI boom, contributing to a decline in U.S. tech stocks [8]

Report Industry Investment Rating - No relevant information provided Core Viewpoints - The new TOHOKU 31 tightened 5bps from RO at T+70, while the new NTT Float 31 and OCBCSP 36 hovered around ROs. The secondary Chinese IG space overall closed unchanged. There were balanced flows on TMT names, better buying in CCAMCL FRNs and front - end ORIEAS, and better selling on FRESHK 27 - 29s. EHICAR 26 dropped 0.5pt, while EHICAR 27 closed unchanged. In HK, sentiment on HK property gradually recovered, with some bonds gaining and others losing. In Chinese properties, some bonds gained and some lost. In KR space, new issues widened, and long - end bonds traded wider. JP insurance subs and Yankee AT1s remained stable. In SE Asian space, MEDCIJ 27 was down, and some bonds rose. In the Middle East, PBs were selling long - end KSA/ARAMCO, and global RMs were buying 2 - 5yr FABUHs. The LGFV space closed largely unchanged [2] - The new SUMITR Float 29s tightened 10bps from RO at SOFR+71, and SUMITR Float 31s tightened 17 - 18bps from RO at SOFR+89. Fixed - rate SUMITR new issues had different performances, and Asia IG space were 2 - 4bps wider. INCLEN/INGPHL/RPVIN had solid 3QFY26 earnings and were on track to FY26 guidance. YLLGSP's FY25 results stabilized with narrowing losses, a rebound in gross margin, and a healthy gearing ratio, and YLLGSP 26 was unchanged [3] - ReNew Energy (RNW)'s credit profile is underpinned by robust operating cash inflows and scalable advantages. INCLEN 4.5 04/18/27 is preferred within the ReNew Energy complex, and a buy is maintained on it despite less compelling valuation. RNW benefits from diversification and resilient cash flow generation, with revenue and adj. EBITDA increasing and loss before tax narrowing in 3QFY26 and 9MFY26. It is on track to meet FY26 guidance, and is pivoting to a more solar - heavy portfolio, which is credit positive. Leverage is expected to decline, and it early redeemed a bond and has refinancing risk for some outstanding bonds [7][10][13][14] Summary by Directory Trading Desk Comments - New issuance: TOHOKU 31 tightened 5bps from RO at T+70; NTT Float 31 and OCBCSP 36 hovered around ROs [2] - Secondary Chinese IG space: Overall closed unchanged, with balanced flows on TMT names, better buying in CCAMCL FRNs and front - end ORIEAS, and better selling on FRESHK 27 - 29s [2] - EHICAR: EHICAR 26 dropped 0.5pt, EHICAR 27 closed unchanged [2] - HK property: Sentiment gradually recovered, NWDEVL/VDNWDL Perps gained 0.1 - 1.3pts, HYSAN 4.85 Perp edged 0.6pt higher, MTRC 5.625 Perp/LASUDE 26 were 0.1pt higher, FAEACO 12.814 Perp lost 0.4pt [2] - Chinese properties: FUTLAN 28/FTLNHD 26 - 27 gained up to 0.6pt, new FTLNHD 29 was priced at 97.095 and YTM 13%, VNKRLE 27 - 29 lost 0.5pt, LNGFOR 27 - 32 were 0.1pt lower to 0.3pt higher [2] - KR space: New issues DAESEC 29 - 31 widened 1bp, long - end EIBKOR/LGENSO/POHANG traded 1 - 3bps wider [2] - JP insurance subs and Yankee AT1s: Remained stable with flows largely from retail accounts [2] - SE Asian space: MEDCIJ 27 was down by 0.3pt, rest of MEDCIJ 26 - 30s were unchanged to 0.1pt higher, ACPM Perps rose 0.9 - 1.3pts, ACNRGY 5.1 Perp gained 1.4pts [2] - Middle East: PBs were selling long - end KSA/ARAMCO, global RMs were buying 2 - 5yr FABUHs [2] - LGFV space: Closed largely unchanged amid moderate two - way flows [2] Analyst Comments - INCLEN/INGPHL/RPVIN: Had solid 3QFY26 earnings and were on track to FY26 guidance [3][7] - YLLGSP: FY25 results stabilized with narrowing losses, gross margin rebounded to 27.4% in FY25 from 9.4% in FY24, and gearing ratio was 43.6%. YLLGSP 26 was unchanged [3] - ReNew Energy (RNW): Credit profile is underpinned by robust operating cash inflows and scalable advantages. INCLEN 4.5 04/18/27 is preferred. In 3QFY26, revenue rose 36% yoy to INR25.1bn, adj. EBITDA increased 54% yoy to INR21.4bn, and loss before tax narrowed by 83% yoy to INR505mn. In 9MFY26, revenue rose 48% yoy to INR100.4bn, adj. EBITDA increased 31% yoy to INR74.8bn, and profit before tax up 83% yoy to INR12.8bn. It is on track to meet FY26 guidance, is pivoting to a more solar - heavy portfolio, and leverage is expected to decline. It early redeemed USD525mn RNW 7.95 07/28/26 and has refinancing risk for some outstanding bonds [7][10][13][14] Macro News Recap - S&P (-0.54%), Dow (+0.03%) and Nasdaq (-1.18%) were mixed on Thursday. US latest initial jobless claims were +212k, lower than the market expectation of +217k. UST yield was lower on Thursday, with 2/5/10/30 year yield at 3.42%/3.57%/4.02%/4.67% [6] Offshore Asia New Issues Priced | Issuer/Guarantor | Size (USD mn) | Tenor | Coupon | Priced | Issue Rating (M/S/F) | | --- | --- | --- | --- | --- | --- | | Emirate of Abu Dhabi | 1250/1750 | 5yr/10yr | 3.75%/4.25% | T+20/T+25 | -/AA/AA | | New Metro Global | 355 | 3yr | 11.8% | 13.0% | -/B - /- | | Qatar Islamic Bank | 750/500/750 | 5yr/3yr/3yr | 4.402%/3.95%/SOFR+71 | T+80/T+53/SOFR+71 | -/-/A | | Sumitomo Mitsui Trust | 500/750/500 | 5yr/5yr/10yr | 4.20%/SOFR+89/4.8% | T+65/SOFR+89/T+80 | A1/A/- | [20] Pipeline - No Offshore Asia New Issues Pipeline Today [21] News and Market Color - Onshore primary issuances: 76 credit bonds were issued yesterday with an amount of RMB53bn. Month - to - date, 1,041 credit bonds were issued with a total amount of RMB795bn raised, representing a 27.2% yoy decrease [22] - ARAMCO: Canceled some liquefied petroleum gas deliveries after damage to a delivery system at its Juaymah facility [22] - CKHH: Agreed to sell 100% of UK Power Networks Holdings to France's Engie for cUSD14.2bn [22] - CTFSHK: 1HFY26 adjusted EBITDA rose 0.97% yoy to HKD3.6bn (cUSD459mn) [22] - DALWAN: Sold Changzhou Xinbei Wanda Plaza Investment [22] - FOSUNI: Fosun pharma business to issue corporate bonds for up to RMB6bn (cUSD872.7mn) [22] - KDB: Will review the privatisation of Korean shipping firm HMM after the shipper's relocation to Busan is completed [22] - IIFOIN: Plans to raise USD500 - 750mn via external commercial borrowings and USD social bonds in Mar'26 [22] - NIO: Certain Chinese investors will infuse RMB2.3bn (cUSD329mn) in its subsidiary, GeniTech, by subscribing to its shares [22] - PTTGC: Estimated its capex for the 2026 - 2030 period totaled USD553mn [29] - TAISEM: Net revenue up 32% in FY25 to TWD3.8tn (cUSD121.6bn) [29]

Core Viewpoint - The Supreme Court of India has reinforced the integrity of the insolvency framework by dismissing appeals from unsuccessful bidders, emphasizing that such challenges undermine the resolution process and delay operational control for successful bidders [1][2][5]. Group 1: Court Rulings and Observations - The Supreme Court upheld the resolution plan of Sarda Energy & Minerals Ltd for SKS Power Generation, dismissing appeals from Torrent Power Ltd, Jindal Power Ltd, and Vantage Point Asset Management [2][4]. - The court criticized unsuccessful bidders for attempting to challenge commercial decisions of the committee of creditors (CoC) by framing them as procedural flaws, which it stated could lead to protracted legal battles and erode the value of the corporate debtor [3][4]. - The court noted that such litigation incentivizes delays and is inconsistent with the economic logic of the Insolvency and Bankruptcy Code (IBC) [4]. Group 2: Background and Financial Context - The dispute originated from the NCLAT's approval of Sarda Energy's ₹1,950-crore bid to acquire SKS Power, which was contested by several bidders [6]. - SKS Power was facing insolvency proceedings initiated by Bank of Baroda due to admitted claims of approximately ₹2,560 crore, with lenders like State Bank of India also involved [7]. - Sarda Energy's resolution plan was approved by the NCLT, covering nearly the entire amount owed to financial creditors [7]. Group 3: Company Information - SKS Power operates a 4x300 MW coal-based thermal power plant in Raigarh district, Chhattisgarh [8]. - Sarda Energy & Minerals, founded in 1973, is a leading low-cost steel producer and a major manufacturer and exporter of ferroalloys in India [8].

Market Overview - Benchmark indices Sensex and Nifty experienced a decline in early trade on February 27, 2026, influenced by a weak trend in global markets and fresh foreign fund outflows [1] - The 30-share BSE Sensex fell by 364.62 points to 81,883.99, while the 50-share NSE Nifty decreased by 117.15 points to 25,379.40 [1] Sector Performance - Major laggards in the Sensex pack included Maruti, Bharti Airtel, Hindustan Unilever, Mahindra & Mahindra, Kotak Mahindra Bank, and UltraTech Cement [1] - Conversely, Infosys, Tech Mahindra, HCL Tech, and Eternal were among the gainers [2] Foreign and Domestic Investment - Foreign Institutional Investors (FIIs) sold equities worth ₹3,465.99 crore on February 16, while Domestic Institutional Investors (DIIs) purchased stocks worth ₹5,031.57 crore [2] Global Market Influence - Asian markets showed a downward trend with South Korea's Kospi, Japan's Nikkei 225, and Shanghai's SSE Composite index declining, while Hong Kong's Hang Seng index was in positive territory [2] - The U.S. market also ended mostly lower on February 26, amid concerns over U.S.-Iran negotiations regarding Iran's nuclear program [3] Oil Prices - Brent Crude, the global oil benchmark, saw a slight decrease of 0.07% to $70.70 per barrel [4]

Group 1 - Foreign investors are returning to Indian stocks at the fastest pace in eight months, with nearly $2.1 billion of local shares purchased in February, indicating strong inflows since June [1][2] - The recent US trade deal has removed uncertainty for the $5.2 trillion Indian market, contributing to the positive momentum in corporate earnings and stock performance [2][3] - The MSCI India Index gained 8.1% last year, supported by local investors, despite foreign investors cutting exposure in 2025 [3] Group 2 - Indian equities have underperformed compared to the MSCI Asia Pacific Index, which surged 25% in 2025, leaving Indian valuations relatively low, trading about 4% below their five-year average price-to-earnings ratio [4] - Earnings for FTSE India Index companies rose 10% year-on-year in the December quarter, with net income climbing 13%, indicating a recovery in corporate earnings [5] - Consensus estimates suggest fiscal 2027 earnings growth of 16% for over 250 companies, supported by recovery in nominal GDP growth, private capex, and consumption [5][6] Group 3 - Financial companies are among the top picks for global investors, with increased interest in metals and capital goods sectors [6] - Some investors caution against viewing the latest inflows as the beginning of a structural bull run, as concerns over AI's impact on software and tech firms have led to significant market value losses [6] - Foreign funds' buying is partly tactical, influenced by softer US yields and emerging-market appeal, with a cautious but clear global positioning toward India [7]

Core Insights - The investment landscape is shifting as prominent investors move away from traditional banking and invest in technology companies, indicating a focus on future growth areas [1] Group 1: Investment Shifts - Billionaire Stanley Druckenmiller is significantly increasing his investments in technology, particularly in Alphabet and Amazon, while divesting from the American banking sector [2][4] - Druckenmiller's Duquesne Family Office increased its holdings in Alphabet by 277%, totaling 385,000 shares, and raised its Amazon position by 69% to 737,940 shares [4] Group 2: Performance and Projections - Amazon reported impressive fourth-quarter results with $213.4 billion in revenue and $25 billion in operating income, indicating strong performance driven by the AI boom [5] - CEO Andy Jassy announced that Amazon's capital expenditures are expected to reach $200 billion this year, surpassing analyst expectations as the company invests in data centers and AI infrastructure [6] Group 3: Broader Implications - Druckenmiller's investment strategy reflects a belief that the next financial cycle will be influenced by programmable money and computational power rather than traditional financial metrics [7]

Full Year 2025 Results - Klarna Group plc reported a total revenue of $3.5 billion, representing a 25% year-over-year increase [1] - The company achieved an adjusted operating profit of $65 million, with an adjusted operating margin of 1.9% [1] - The gross merchandise volume (GMV) reached $127.9 billion, marking a 22% year-over-year growth [1] - Klarna's basic and diluted earnings per share (EPS) for FY 2025 was $(0.79), with Q4 EPS at $(0.12) [1] User Growth and Engagement - Klarna has 966,000 merchants on its platform, which is a 42% increase year-over-year [1] - The number of active consumers reached 118 million, reflecting a 28% year-over-year growth [1] - The Klarna app now has over 55 million monthly active users, with daily usage increasing by approximately 53% compared to the previous year [1] Partnerships and Market Position - Klarna announced a new partnership with Article, a modern furniture brand, to offer flexible payment options at checkout [1] - The home essentials category is identified as one of Klarna's fastest-growing segments in North America [1] - Klarna's services are utilized by major retailers such as Uber, H&M, and Nike, indicating strong market trust and presence [1]

Market Overview - U.S. stocks traded mostly lower, with the Nasdaq Composite dropping over 350 points on Thursday [1] - The Dow decreased by 0.10% to 49,432.55, the NASDAQ fell by 1.57% to 22,788.62, and the S&P 500 dropped by 0.88% to 6,884.75 [1] Sector Performance - Financial shares gained by 1.2% on Thursday [1] - Information technology stocks fell by 2.2% [1] Employment Data - U.S. initial jobless claims rose by 4,000 to 212,000 during the third week of February, compared to market estimates of 215,000 [2][6] Commodity Prices - Oil traded up 0.5% to $65.76, while gold traded down 0.9% to $5,178.80 [3] - Silver fell by 4.6% to $86.765, and copper decreased by 0.6% to $6.0085 [3] European Market Performance - European shares were mixed, with the eurozone's STOXX 600 falling by 0.3% and Spain's IBEX 35 Index down by 0.1% [4] - London's FTSE 100 rose by 0.2%, Germany's DAX gained 0.2%, and France's CAC 40 increased by 0.6% [4] Asian Market Performance - Asian markets closed mixed, with Japan's Nikkei 225 gaining 0.29%, while Hong Kong's Hang Seng index dipped by 1.44% [5] - China's Shanghai Composite fell by 0.01%, and India's BSE Sensex slipped by 0.03% [5] Natural Gas Stocks - U.S. natural-gas stocks fell by 52 billion cubic feet in the week ended February 20, compared to market expectations of a 36 bcf draw [6]

As the war of words rages on, the market damage is undeniable. Just this year, shares of Ares Management Corp. have plunged 26%, Blue Owl is down 24%, Blackstone Inc. has dropped 23% and Apollo Global Management Inc. has slumped 19%, as shareholders take flight from asset managers that have plowed into private credit.Bank analysts are also jumping into the fray. Bank of America Corp. called Blue Owl a buy, blasting “misinformation” around the money manager. Those at UBS Group AG, though, now see an even ble ...