【招银国际】Bank Capital Papers:Opportunities in AT1 and T2-251126（8页）.pdf

1、 PLEASE READ THE AUTHOR CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE Fixed Income Credit Commentary 26 Nov 2025 Cyrena Ng,CPA 吳蒨瑩吳蒨瑩(852)3900 0801 .hk Glenn Ko,CFA 高志和高志和(852)3657 6235 .hk Yujing Zhang 张钰婧张钰婧(852)3900 0830 .hk CMBI Fixed Income .hk Asian AT1&T2 offer higher return predictabi

2、lity In Asian AT1 space,we maintain buy on NOMURA 7 Perp.At the same time,we initiate buy on BBNIIJ 4.3 Perp which,in our view,offers good relative value in the space.In Asian T2 space,we maintain buy on BBLTB 3.466 09/23/36,BBLTB 6.056 03/25/40,CHIYBK 5.75 04/07/32 and KBANK 3.343 10/02/31 on more

3、appealing risk-return profiles.On the other hand,we changed recommendations on CHIYBK 8 Perp,KBANK 4 Perp,SHINFN 2.875 Perp,and WSTP 5 Perp to neutral from buy.The changes are more of valuation considerations instead of concerns on non-call.See Table 1 and 2 for the summary of our latest recommendat

4、ions on Asian AT1s and T2s.As we have been arguing,capital papers of European banks offer better YTC but capital papers of Asian banks offer more predictable return through higher certainty of call and coupon distributions.Overall,we believe that our Asian AT1 and T2 picks offer more attractive yiel

5、d and high predictability of return,given the issuers solid capital adequacy,stable dividend policy,as well as track records of call on the first call dates and payments of scheduled distributions.The return predictability is even higher for T2s as they are more senior in the capital structure.Addit

6、ionally,the annual capital amortization of 20%in the last five years to maturity provides an extra incentive for the banks to call.CMBI Credit Commentary Bank Capital Papers:Opportunities in AT1 and T2 26 Nov 2025 2 Table 1:Our AT1 picks Security name ISIN Region Amt o/s(USD mn)Ask px YTC Mod dur Is