Credit

Spreads Tightening In Oil Producers, Travel-Related Companies

The possibility of seeing more economic stimulus as the economy slowly reopens is pushing down spreads in beaten down sectors

Published ET

Sources: ϕpost, Refinitiv data

Sources: ϕpost, Refinitiv data


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QUICK SUMMARY

  • S&P 500 Bond Index was up 0.1% today, with investment grade up 0.1% and high yield unchanged (YTD total return: -3.2%)
  • ICE BofA US Corporate Index (Investment Grade) spread to worst unchanged, now at 89.0 bp (YTD change: -9.0 bp)
  • ICE BofA US High Yield Index spread to worst down -1.0 bp, now at 340.0 bp (YTD change: -50.0 bp)
  • S&P/LSTA U.S. Leveraged Loan 100 Index up 0.1% today (YTD total return: +1.5%)
  • Not a terribly busy day for new bond issuance: US$ 5.2bn in dollars and €7.7bn in euros
Sources: ϕpost, Refinitiv dataSources: ϕpost, Refinitiv dataSources: ϕpost, Refinitiv dataSources: ϕpost, Refinitiv data

CDS INDICES (mid-spreads)

  • Markit CDX.NA.IG 5Y down -0.8 bp, now at 50bp (YTD change: +0.1bp)
  • Markit CDX.NA.HY 5Y up -3.4 bp, now at 284bp (YTD change: -8.9bp)
  • Markit iTRAXX Europe down -0.5 bp, now at 50bp (YTD change: +2.2bp)
  • Markit iTRAXX Japan unchanged at 48bp (YTD change: -2.9bp)
  • Markit iTRAXX Asia Ex-Japan down -1.0 bp, now at 81bp (YTD change: +22.6bp)
Sources: ϕpost, Refinitiv dataSources: ϕpost, Refinitiv data

USD CORPORATE CDS MOVERS (5Y PAR SPREADS)

  • NVR Inc (Country: US; rated: A1): up 38.5 bp to 253.6bp (1Y range: 181-288bp)
  • RR Donnelley & Sons Co (Country: US; rated: B2): up 36.3 bp to 495.0bp (1Y range: 447-1,448bp)
  • Occidental Petroleum Corp (Country: US; rated: WD): down 14.4 bp to 264.0bp (1Y range: 242-1,021bp)
  • DISH Network Corp (Country: US; rated: B1): down 14.7 bp to 331.7bp (1Y range: 332-597bp)
  • Genworth Holdings Inc (Country: US; rated: Caa2): down 15.7 bp to 475.7bp (1Y range: 476-1,070bp)
  • Power Finance Corporation Ltd (Country: IN; rated: BBB-): down 18.6 bp to 231.1bp (1Y range: 154-258bp)
  • Carnival Corp (Country: US; rated: LGD5 - 71%): down 20.5 bp to 323.6bp (1Y range: 292-1,408bp)
  • Apache Corp (Country: US; rated: Ba1): down 44.4 bp to 256.9bp (1Y range: 205-453bp)
  • Transocean Inc (Country: KY; rated: Caa3): down 50.4 bp to 1,605.4bp (1Y range: 1,459-7,695bp)
  • Nabors Industries Inc (Country: US; rated: B+): down 88.3 bp to 925.1bp (1Y range: 808-4,514bp)  

EURO CORPORATE CDS MOVERS (5Y PAR SPREADS)

  • Stena AB (Country: SE; rated: B2-PD): up 9.0 bp to 581.7bp (1Y range: 534-932bp)
  • Syngenta AG (Country: CH; rated: Ba2): down 3.9 bp to 144.2bp (1Y range: 105-288bp)
  • Monitchem Holdco 3 SA (Country: LU; rated: B2): down 3.9 bp to 263.3bp (1Y range: 252-423bp)
  • Casino Guichard Perrachon SA (Country: FR; rated: WR): down 4.0 bp to 544.9bp (1Y range: 516-1,210bp)
  • Deutsche Lufthansa AG (Country: DE; rated: Ba2): down 4.4 bp to 290.0bp (1Y range: 233-457bp)
  • British Airways PLC (Country: GB; rated: WR): down 7.0 bp to 46.8bp (1Y range: 32-56bp)
  • Stonegate Pub Company Financing PLC (Country: GB; rated: WR): down 8.9 bp to 537.8bp (1Y range: 514-984bp)
  • CMA CGM SA (Country: FR; rated: B1): down 9.6 bp to 395.8bp (1Y range: 393-1,929bp)
  • Nokia Oyj (Country: FI; rated: BBB-): down 16.6 bp to 108.2bp (1Y range: 80-187bp)
  • Tui AG (Country: DE; rated: LGD4 - 50%): down 17.3 bp to 897.9bp (1Y range: 590-2,880bp)

NEW BONDS ISSUED IN USD

  • Alphanotes Etp DAC (Financial - Other | Dublin, Ireland | Rating: NR): US$120m Unsecured Note (XS1749046428), floating rate maturing on 18 January 2028, priced at 100.00, non callable
  • CSC Holdings LLC (Cable/Media | Bethpage, Luxembourg | Rating: B+): US$500m Senior Unsecured Note (US126307BK24), fixed rate (5.00% coupon) maturing on 15 November 2031, priced at 100.00 (original spread of 336 bp), callable (11nc6)
  • CSC Holdings LLC (Cable/Media | Bethpage, Luxembourg | Rating: BB): US$1,500m Senior Secured Note (US126307BH94), fixed rate (4.50% coupon) maturing on 15 November 2031, priced at 100.00 (original spread of 286 bp), callable (11nc6)
  • Carriage Services Inc (Service - Other | Houston, United States | Rating: B+): US$400m Senior Note (US143905AP21), fixed rate (4.25% coupon) maturing on 15 May 2029, priced at 100.00 (original spread of 336 bp), callable (8nc3)
  • Dana Inc (Vehicle Parts | Maumee, United States | Rating: BB): US$400m Senior Note (US235825AH97), fixed rate (4.25% coupon) maturing on 1 September 2030, priced at 100.00 (original spread of 276 bp), callable (9nc5)
  • Deutsche Bank AG (Banking | Frankfurt, Germany | Rating: BBB): US$500m Note (XS0459850599), fixed rate (1.60% coupon) maturing on 20 May 2027, priced at 100.00, non callable
  • Federal Farm Credit Banks Funding Corp (Agency | Jersey City, United States | Rating: AA+): US$100m Bond (US3133EMYS51), fixed rate (2.45% coupon) maturing on 10 May 2034, priced at 100.00 (original spread of 238 bp), callable (13nc3m)
  • Federal Farm Credit Banks Funding Corp (Agency | Jersey City, United States | Rating: AA+): US$360m Bond (US3133EMYN64), fixed rate (0.71% coupon) maturing on 6 May 2025, priced at 100.00 (original spread of 66 bp), callable (4nc1)
  • Federal Farm Credit Banks Funding Corp (Agency | Jersey City, United States | Rating: AA+): US$135m Bond (US3133EMYP13), fixed rate (2.10% coupon) maturing on 6 May 2031, priced at 100.00 (original spread of 204 bp), callable (10nc3m)
  • Independence Energy Finance LLC (Financial - Other | New York City | Rating: B+): US$500m Senior Note (US45344LAA17), fixed rate (7.25% coupon) maturing on 1 May 2026, priced at 100.00 (original spread of 642 bp), callable (5nc2)
  • SFL Corporation Ltd (Transportation - Other | Hamilton, Bermuda | Rating: NR): US$150m Bond (NO0010992944), fixed rate (7.25% coupon) maturing on 12 May 2026, priced at 100.00, callable (5nc5)
  • Texas Capital Bancshares Inc (Banking | Dallas, United States | Rating: BB+): US$375m Senior Subordinated Note (US88224QAA58), fixed rate (4.00% coupon) maturing on 6 May 2031, priced at 100.00 (original spread of 315 bp), callable (10nc5)
  • Toledo Edison Co (Utility - Other | Akron, United States | Rating: BBB+): US$150m First Mortgage Bond (USU8T82TAA40), fixed rate (2.65% coupon) maturing on 1 May 2028, priced at 99.70 (original spread of 138 bp), callable (7nc7)

NEW BONDS ISSUED IN EUROS

  • Bpifrance SA (Banking | Maisons-Alfort, France | Rating: NR): US$1,250m Bond (FR0014003C70) zero coupon maturing on 25 May 2028, priced at 100.10, non callable
  • Bremen Free Hanseatic, City of (Official and Muni | Bremen, Germany | Rating: AAA): US$500m Jumbo Landesschatzanweisung (DE000A3H2YH5), fixed rate (0.50% coupon) maturing on 6 May 2041, priced at 99.23 (original spread of 47 bp), non callable
  • Compact Bidco BV (Financial - Other | Huissen | Rating: B-): US$300m Note (XS2338546208), fixed rate (5.75% coupon) maturing on 1 May 2026, priced at 100.00 (original spread of 631 bp), callable (5nc2)
  • Danske Bank A/S (Banking | Koebenhavn K, Denmark | Rating: A-): US$100m Unsecured Note (XS2339095213) zero coupon maturing on 7 May 2031, priced at 100.00, non callable
  • Kedrion SpA (Pharmaceuticals | Barga | Rating: B): US$410m Note (XS2339500170), fixed rate (3.38% coupon) maturing on 15 May 2026, priced at 100.00 (original spread of 393 bp), callable (5nc2)
  • Landesbank Hessen Thueringen Girozentrale (Banking | Frankfurt, Hessen, Germany | Rating: A): US$100m Inhaberschuldverschreibung (DE000HLB23H2), fixed rate (0.20% coupon) maturing on 26 May 2031, priced at 100.00, non callable
  • Landesbank Hessen Thueringen Girozentrale (Banking | Frankfurt, Germany | Rating: A): US$100m Inhaberschuldverschreibung (DE000HLB23J8), fixed rate (0.90% coupon) maturing on 10 June 2036, priced at 100.00 (original spread of 53 bp), callable (15nc1)
  • Raiffeisen Centrobank AG (Banking | Wien, Austria | Rating: NR): US$100m Index Linked Security (ATSK012PREM9), floating rate maturing on 11 June 2029, priced at 100.00, non callable
  • Raiffeisen Centrobank AG (Banking | Wien, Wien, Austria | Rating: NR): US$100m Index Linked Security (AT0000A2R903) zero coupon maturing on 10 June 2026, priced at 100.00, non callable
  • Societe du Grand Paris (Agency | Saint-Denis, France | Rating: AA): US$2,000m Bond (FR0014003CJ5), fixed rate (0.88% coupon) maturing on 10 May 2046, priced at 98.51, non callable
  • Toyota Motor Finance Netherlands BV (Financial - Other | Amsterdam, Japan | Rating: A+): US$200m Unsecured Note (XS2338066413), floating rate maturing on 28 April 2023, priced at 101.12, non callable
  • Universal Investment Luxembourg SA (Financial - Other | Grevenmacher, United Kingdom | Rating: NR): US$2,500m Senior Note (XS2338189926), fixed rate (4.00% coupon) maturing on 31 October 2036, non callable

NEW STRUCTURED CREDIT ISSUES

  • Fs Rialto 2021-Fl2 Issuer Ltd issued a floating-rate CLO in 6 tranches, for a total of US$ 647 m. Highest-rated tranche offering a spread over the floating rate of 122bp, and the lowest-rated tranche a spread of 345bp.
  • Wells Fargo Commercial Mortgage Trust 2021-Fcmt issued a floating-rate CMBS in 6 tranches, for a total of US$ 432 m. Highest-rated tranche offering a spread over the floating rate of 120bp, and the lowest-rated tranche a spread of 590bp.
  • Rlgh 2021-Trot issued a floating-rate CMBS in 3 tranches, for a total of US$ 164 m. Highest-rated tranche offering a spread over the floating rate of 80bp, and the lowest-rated tranche a spread of 135bp.
  • Visio 2021-1r issued a fixed-rate RMBS in 4 tranches, for a total of US$ 160 m. Highest-rated tranche offering a yield to maturity of 1.28%, and the lowest-rated tranche a yield to maturity of 2.73%.
  • Oportun Issuance Trust 2021-B issued a fixed-rate CLO in 4 tranches, for a total of US$ 500 m. Highest-rated tranche offering a yield to maturity of 1.47%, and the lowest-rated tranche a yield to maturity of 5.41%.
  • Prpm 2021-3 issued a fixed-rate RMBS in 2 tranches, for a total of US$ 339 m. Highest-rated tranche offering a yield to maturity of 1.87%, and the lowest-rated tranche a yield to maturity of 3.72%.
  • Dllaa 2021-1 Ag Equipment issued a fixed-rate ABS backed by equipment leases in 4 tranches, for a total of US$ 1,011 m. Highest-rated tranche offering a coupon of 0.36%, and the lowest-rated tranche a yield to maturity of 1.03%.