HNA: No Happy New Answers

Negative headlines and the new 363-day USD bond issuance have significantly raised yields of all HNA-related bonds. While we see an attractive carry on SANYPH 11/​18s and SANYPH 12/​18s especially for retail investors, we do not foresee a major improvement in HNA's credit profile in the near term. HNA's execution and refinancing risks pose asymmetric downside risk to all HNA-related bonds and we maintain our UNDERWEIGHT recommendation on SANYPH and HONAIR complexes as well as GRCHAR 19s. Read more: https://www.smartkarma.com/insights/hna-no-happy-new-answers