Credit

A Positive Day For US Credit With Tighter Spreads Across The Board

The IFR reported weekly primary market issuance of US$32bn for IG and US$12.7bn for HY; 2021 YTD volumes of US$ 681.4bn (vs. 2020 YTD US$988.7bn) for IG and US$238.3bn (vs. 2020 YTD US$142.4bn) for HY

Published ET

Sources: ϕpost, Refinitiv data

Sources: ϕpost, Refinitiv data

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QUICK SUMMARY

  • S&P 500 Bond Index was up 0.32% today, with investment grade up 0.35% and high yield up 0.11% (YTD total return: -3.22%)
  • ICE BofA US Corporate Index (Investment Grade) spread to worst down -1.0 bp, now at 86.0 bp (YTD change: -12.0 bp)
  • ICE BofA US High Yield Index spread to worst down -4.0 bp, now at 353.0 bp (YTD change: -37.0 bp)
  • S&P/LSTA U.S. Leveraged Loan 100 Index up 0.1% today (YTD total return: +1.9%)

US CORPORATE OPTION-ADJUSTED SPREAD (OAS) BY RATING

  • AAA down by -1 bp at 46 bp
  • AA down by -1 bp at 54 bp
  • A down by -1 bp at 70 bp
  • BBB unchanged at 114 bp
  • BB down by -5 bp at 245 bp
  • B down by -8 bp at 374 bp
  • CCC down by -4 bp at 648 bp
Sources: ϕpost, Refinitiv dataSources: ϕpost, Refinitiv data

CDS INDICES (mid-spreads)

  • Markit CDX.NA.IG 5Y up 0.2 bp, now at 52bp (YTD change: +2.5bp)
  • Markit CDX.NA.HY 5Y down 0.7 bp, now at 294bp (YTD change: +0.8bp)
  • Markit iTRAXX Europe up 0.5 bp, now at 52bp (YTD change: +4.5bp)
  • Markit iTRAXX Japan down 0.9 bp, now at 47bp (YTD change: -4.3bp)
  • Markit iTRAXX Asia Ex-Japan up 0.2 bp, now at 90bp (YTD change: +31.6bp)
Sources: ϕpost, Refinitiv dataSources: ϕpost, Refinitiv data

LARGEST USD CORPORATE CDS MOVERS IN THE LAST 5 DAYS (5Y PAR SPREADS)

  • Transocean Inc (Country: KY; rated: Caa3): up 68.4 bp to 1,383.3bp (1Y range: 1,315-7,695bp)
  • Nabors Industries Inc (Country: US; rated: B+): up 64.6 bp to 1,050.6bp (1Y range: 808-4,514bp)
  • MBIA Inc (Country: US; rated: Ba3): up 41.1 bp to 485.5bp (1Y range: 378-757bp)
  • Carnival Corp (Country: US; rated: LGD5 - 71%): down 28.0 bp to 367.7bp (1Y range: 292-1,408bp)
  • Dillard's Inc (Country: US; rated: BBB-): down 30.5 bp to 151.7bp (1Y range: 151-430bp)
  • RR Donnelley & Sons Co (Country: US; rated: B2): down 31.0 bp to 513.7bp (1Y range: 447-1,239bp)
  • Nordstrom Inc (Country: US; rated: WR): down 31.4 bp to 215.0bp (1Y range: 211-684bp)
  • American Airlines Group Inc (Country: US; rated: B2): down 33.2 bp to 715.3bp (1Y range: 702-4,941bp)
  • Road King Infrastructure Ltd (Country: HK; rated: WR): down 66.6 bp to 557.0bp (1Y range: 482-786bp)
  • Macy's Inc (Country: US; rated: Ba3): down 96.2 bp to 304.7bp (1Y range: 300-1,333bp)

LARGEST EUR CORPORATE CDS MOVERS IN THE LAST 5 DAYS (5Y PAR SPREADS)

  • Boparan Finance PLC (Country: GB; rated: B3): up 37.6 bp to 884.9bp (1Y range: 478-1,058bp)
  • Iceland Bondco PLC (Country: GB; rated: LGD3 - 46%): up 14.6 bp to 470.9bp (1Y range: 358-1,004bp)
  • Koninklijke KPN NV (Country: NL; rated: BB+): up 11.8 bp to 122.1bp (1Y range: 55-122bp)
  • Lagardere SCA (Country: FR; rated: B): up 9.7 bp to 235.7bp (1Y range: 226-350bp)
  • Thyssenkrupp AG (Country: DE; rated: B1): up 9.3 bp to 285.7bp (1Y range: 206-479bp)
  • Abertis Infraestructuras SA (Country: ES; rated: BBB): up 8.9 bp to 123.6bp (1Y range: 95-156bp)
  • Stonegate Pub Company Financing PLC (Country: GB; rated: WR): down 11.9 bp to 541.1bp (1Y range: 516-984bp)
  • Jaguar Land Rover Automotive PLC (Country: GB; rated: WD): down 17.2 bp to 383.5bp (1Y range: 355-1,456bp)
  • Stena AB (Country: SE; rated: B2-PD): down 30.1 bp to 567.4bp (1Y range: 534-852bp)
  • TUI AG (Country: DE; rated: LGD4 - 50%): down 63.1 bp to 838.1bp (1Y range: 590-2,386bp)

TOP 1-DAY BONDS MOVERS - USD HY

  • Issuer: W R Grace & Co-Conn (Hartford, United States) | Coupon: 5.63% | Maturity: 1/10/2024 | Rating: B+ | ISIN: USU38246AB79 | Option-adjusted spread up by 29.4 bp to 214.2 bp, with the yield to worst at 2.3% and the bond now trading down to 109.5 cents on the dollar (1Y price range: 108.0-111.6).
  • Issuer: Starwood Property Trust Inc (Greenwich, Connecticut (US)) | Coupon: 5.50% | Maturity: 1/11/2023 | Rating: B+ | ISIN: USU85656AE39 | Option-adjusted spread up by 24.5 bp to 295.1 bp, with the yield to worst at 3.1% and the bond now trading down to 104.8 cents on the dollar (1Y price range: 103.4-105.5).
  • Issuer: Embraer Netherlands Finance BV (Amsterdam, Netherlands) | Coupon: 6.95% | Maturity: 17/1/2028 | Rating: BB | ISIN: USN29505AA70 | Option-adjusted spread up by 16.5 bp to 353.7 bp, with the yield to worst at 4.5% and the bond now trading down to 113.2 cents on the dollar (1Y price range: 108.7-114.1).
  • Issuer: SoftBank Group Corp (Minato-ku, Japan) | Coupon: 5.13% | Maturity: 19/9/2027 | Rating: BB- | ISIN: XS1684384867 | Option-adjusted spread up by 15.2 bp to 290.0 bp, with the yield to worst at 4.0% and the bond now trading down to 106.0 cents on the dollar (1Y price range: 104.4-110.4).
  • Issuer: American Airlines Group Inc (Fort Worth, Texas (US)) | Coupon: 3.75% | Maturity: 1/3/2025 | Rating: CCC | ISIN: USU0242AAD47 | Option-adjusted spread down by 17.2 bp to 689.1 bp (CDS basis: -20.4bp), with the yield to worst at 7.2% and the bond now trading up to 88.3 cents on the dollar (1Y price range: 71.0-89.5).
  • Issuer: Owens-Brockway Glass Container Inc (Perrysburg, Ohio (US)) | Coupon: 6.38% | Maturity: 15/8/2025 | Rating: B- | ISIN: USU68337AL58 | Option-adjusted spread down by 22.0 bp to 280.3 bp, with the yield to worst at 3.0% and the bond now trading up to 111.3 cents on the dollar (1Y price range: 110.4-112.0).
  • Issuer: Uzpromstroybank AKB (Tashkent, Uzbekistan) | Coupon: 5.75% | Maturity: 2/12/2024 | Rating: BB- | ISIN: XS2083131859 | Option-adjusted spread down by 30.7 bp to 352.7 bp, with the yield to worst at 3.9% and the bond now trading up to 105.5 cents on the dollar (1Y price range: 102.4-105.5).
  • Issuer: Minsur SA (San Borja, Peru) | Coupon: 6.25% | Maturity: 7/2/2024 | Rating: BB- | ISIN: USP6811TAA36 | Option-adjusted spread down by 32.1 bp to 302.6 bp, with the yield to worst at 3.2% and the bond now trading up to 107.4 cents on the dollar (1Y price range: 100.6-111.4).

TOP 1-DAY BONDS MOVERS - EUR HY

  • Issuer: ACS Actividades de Construccion y Servicios SA (Madrid, Spain) | Coupon: 1.38% | Maturity: 17/6/2025 | Rating: BB+ | ISIN: XS2189592616 | Option-adjusted spread up by 8.1 bp to 139.3 bp, with the yield to worst at 0.9% and the bond now trading down to 101.1 cents on the dollar (1Y price range: 100.9-103.4).
  • Issuer: Leonardo SpA (Rome, Italy) | Coupon: 4.88% | Maturity: 24/3/2025 | Rating: BB+ | ISIN: XS0215093534 | Option-adjusted spread up by 6.4 bp to 131.8 bp (CDS basis: 9.9bp), with the yield to worst at 0.8% and the bond now trading down to 114.6 cents on the dollar (1Y price range: 113.4-115.0).
  • Issuer: TechnipFMC PLC (London, United Kingdom) | Coupon: 4.50% | Maturity: 30/6/2025 | Rating: BB | ISIN: XS2197326437 | Option-adjusted spread up by 5.5 bp to 266.5 bp (CDS basis: 20.1bp), with the yield to worst at 2.2% and the bond now trading down to 108.2 cents on the dollar (1Y price range: 103.4-108.2).
  • Issuer: Aeroporti di Roma SpA (Ciampino, Italy) | Coupon: 1.63% | Maturity: 2/2/2029 | Rating: BB+ | ISIN: XS2265521620 | Option-adjusted spread up by 5.1 bp to 140.3 bp (CDS basis: 32.2bp), with the yield to worst at 1.3% and the bond now trading down to 101.6 cents on the dollar (1Y price range: 99.1-102.6).
  • Issuer: Renault SA (Boulogne-Billancourt, France) | Coupon: 2.50% | Maturity: 1/4/2028 | Rating: BB | ISIN: FR0014002OL8 | Option-adjusted spread up by 4.4 bp to 279.9 bp (CDS basis: -47.5bp), with the yield to worst at 2.6% and the bond now trading down to 98.6 cents on the dollar (1Y price range: 98.6-100.9).
  • Issuer: Syngenta Finance NV (Enkhuizen, Netherlands) | Coupon: 1.25% | Maturity: 10/9/2027 | Rating: BB | ISIN: XS1199954691 | Option-adjusted spread up by 3.9 bp to 168.5 bp, with the yield to worst at 1.5% and the bond now trading down to 98.1 cents on the dollar (1Y price range: 93.2-100.5).
  • Issuer: Bulgarian Energy Holding EAD (Sofia, Bulgaria) | Coupon: 3.50% | Maturity: 28/6/2025 | Rating: BB | ISIN: XS1839682116 | Option-adjusted spread up by 3.8 bp to 188.4 bp (CDS basis: -148.6bp), with the yield to worst at 1.4% and the bond now trading down to 107.6 cents on the dollar (1Y price range: 104.3-107.8).
  • Issuer: G4S International Finance PLC (London, United Kingdom) | Coupon: 1.50% | Maturity: 2/6/2024 | Rating: B | ISIN: XS1619992883 | Option-adjusted spread down by 4.4 bp to 191.8 bp, with the yield to worst at 1.4% and the bond now trading up to 99.8 cents on the dollar (1Y price range: 99.4-100.5).
  • Issuer: Esselunga SpA (Pioltello, Italy) | Coupon: 1.88% | Maturity: 25/10/2027 | Rating: BB+ | ISIN: XS1706922256 | Option-adjusted spread down by 5.9 bp to 121.9 bp, with the yield to worst at 0.9% and the bond now trading up to 104.6 cents on the dollar (1Y price range: 103.6-105.2).
Sources: ϕpost, Refinitiv dataSources: ϕpost, Refinitiv dataSources: ϕpost, Refinitiv data

NEW LOANS

  • Yapi ve Kredi Bankasi AS, signed a US$ 351m Term Loan, to be used for general corporate purposes. It matures on 05/23/22 and initial pricing is set at LIBOR +250bps
  • Yapi ve Kredi Bankasi AS, signed a € 501m Term Loan, to be used for general corporate purposes. It matures on 05/23/22 and initial pricing is set at EURIBOR +225.000bps
  • Oil Search (PNG) Ltd, signed a US$ 600m Revolving Credit / Term Loan, to be used for refinancing bank debt. It matures on 05/21/26 and initial pricing is set at LIBOR +350bps

NEW SECURITIZATIONS

  • Store 2021-1 issued a fixed-rate ABS backed by leases in 4 tranches, for a total of US$ 515 m. Highest-rated tranche offering a yield to maturity of 2.12%, and the lowest-rated tranche a yield to maturity of 3.70%. Bookrunners: Credit Suisse, Morgan Stanley International Ltd
  • Verus Securitization Trust 2021-R3 issued a fixed-rate RMBS in 6 tranches, for a total of US$ 428 m. Highest-rated tranche offering a yield to maturity of 1.02%, and the lowest-rated tranche a yield to maturity of 4.07%. Bookrunners: Credit Suisse, Barclays Capital Group
  • Pagaya Ai Debt Selection Trust 2021-Hg1 issued a fixed-rate ABS backed by consumer loan in 2 tranches, for a total of US$ 246 m. Highest-rated tranche offering a yield to maturity of 1.31%, and the lowest-rated tranche a yield to maturity of 1.86%. Bookrunners: Credit Suisse, Cantor Fitzgerald Securities
  • Bravo Residential Funding Trust 2021-He2 issued a floating-rate RMBS in 5 tranches, for a total of US$ 250 m. Highest-rated tranche offering a spread over the floating rate of 75bp, and the lowest-rated tranche a spread of 240bp. Bookrunners: Morgan Stanley International Ltd, JP Morgan & Co Inc, Bank of America Merrill Lynch
  • Bpr Trust 2021-Will issued a floating-rate CMBS in 6 tranches, for a total of US$ 155 m. Highest-rated tranche offering a spread over the floating rate of 175bp, and the lowest-rated tranche a spread of 675bp. Bookrunners: Morgan Stanley International Ltd
  • Lendmark Funding Trust 2021-1 issued a fixed-rate CLO in 4 tranches, for a total of US$ 450 m. Highest-rated tranche offering a yield to maturity of 1.90%, and the lowest-rated tranche a yield to maturity of 5.05%. Bookrunners: Goldman Sachs & Co, Barclays Capital Group, RBC Capital Markets, Citigroup Global Markets Inc, BMO Capital Markets