Credit

Credit Complex Sees Across-The-Board Spread Compression On Friday

According to figures from S&P LCD, the volume of issuance in the primary market was US$ 33.85 bn for investment grade (YTD: US$ 775 bn) and US$ 8.9 bn for high yield (YTD: US$ 261 bn, a record pace)

Published ET

CDX North America High Yield Index Mid-Spreads | Source: Refinitiv

CDX North America High Yield Index Mid-Spreads | Source: Refinitiv

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QUICK SUMMARY

  • S&P 500 Bond Index was up 0.25% today, with investment grade up 0.26% and high yield up 0.19% (YTD total return: -1.57%)
  • ICE BofA US Corporate Index (Investment Grade) spread to worst down -1.0 bp, now at 85.0 bp (YTD change: -13.0 bp)
  • ICE BofA US High Yield Index spread to worst down -3.0 bp, now at 333.0 bp (YTD change: -57.0 bp)
  • S&P/LSTA U.S. Leveraged Loan 100 Index YTD total return: +2.3%

US CORPORATE OPTION-ADJUSTED SPREAD (OAS) BY RATING

  • AAA unchanged at 47 bp
  • AA down by -1 bp at 54 bp
  • A down by -1 bp at 69 bp
  • BBB down by -1 bp at 111 bp
  • BB down by -2 bp at 232 bp
  • B down by -3 bp at 362 bp
  • CCC down by -5 bp at 609 bp

ICE BofA Spreads By Credit Rating | Source: Refinitiv

Sources: ϕpost, Refinitiv dataSources: ϕpost, Refinitiv data

CDS INDICES (mid-spreads)

  • Markit CDX.NA.IG 5Y down 0.7 bp, now at 48bp (YTD change: -1.7bp)
  • Markit CDX.NA.HY 5Y down 3.1 bp, now at 275bp (YTD change: -17.9bp)
  • Markit iTRAXX Europe down 0.9 bp, now at 47bp (YTD change: -1.1bp)
  • Markit iTRAXX Japan down 1.0 bp, now at 45bp (YTD change: -6.2bp)
  • Markit iTRAXX Asia Ex-Japan down 1.1 bp, now at 83bp (YTD change: +24.8bp)
CDX N.A Indices | Sources: ϕpost, Refinitiv dataiTRAXX Indices | Sources: ϕpost, Refinitiv data

LARGEST USD CORPORATE CDS MOVERS IN THE PAST WEEK

  • Transocean Inc (Country: KY; rated: Caa3): down 232.0 bp to 1,566.8bp (1Y range: 1,222-7,695bp)
  • Nabors Industries Inc (Country: US; rated: B+): down 228.3 bp to 872.2bp (1Y range: 739-4,514bp)
  • Apache Corp (Country: US; rated: WD): down 52.7 bp to 169.3bp (1Y range: 169-453bp)
  • American Airlines Group Inc (Country: US; rated: B2): down 37.5 bp to 618.0bp (1Y range: 618-3,660bp)
  • Murphy Oil Corp (Country: US; rated: Ba3): down 25.7 bp to 302.1bp (1Y range: 298-763bp)
  • MBIA Inc (Country: US; rated: Ba3): down 23.8 bp to 459.0bp (1Y range: 378-757bp)
  • Pitney Bowes Inc (Country: US; rated: LGD2 - 16%): down 22.2 bp to 449.7bp (1Y range: 366-1,458bp)
  • Petroleo Brasileiro SA Petrobras (Country: BR; rated: B): down 13.1 bp to 194.5bp (1Y range: 175-372bp)
  • Liberty Interactive LLC (Country: US; rated: Ba3): down 11.0 bp to 291.2bp (1Y range: 249-404bp)
  • Royal Caribbean Cruises Ltd (Country: US; rated: LGD4 - 61%): down 10.4 bp to 317.6bp (1Y range: 318-1,979bp)
  • Sabre Holdings Corp (Country: US; rated: Ba3): down 10.1 bp to 377.1bp (1Y range: 337-611bp)
  • Meritor Inc (Country: US; rated: LGD5 - 75%): up 9.3 bp to 228.1bp (1Y range: 164-277bp)
  • Macy's Inc (Country: US; rated: Ba3): up 19.7 bp to 319.0bp (1Y range: 291-1,253bp)
  • Staples Inc (Country: US; rated: B2): up 21.8 bp to 799.5bp (1Y range: 652-2,081bp)
  • Talen Energy Supply LLC (Country: US; rated: BB): up 209.9 bp to 1,734.5bp (1Y range: 875-1,735bp)

    Royal Caribbean Cruises 5Y USD CDS Mid-Spread | Source: Refinitiv

LARGEST EURO CORPORATE CDS MOVERS IN THE PAST WEEK

  • Novafives SAS (Country: FR; rated: Caa1): down 41.5 bp to 759.0bp (1Y range: 716-1,409bp)
  • Syngenta AG (Country: CH; rated: Ba2): down 23.4 bp to 101.7bp (1Y range: 102-288bp)
  • Tui AG (Country: DE; rated: LGD4 - 50%): down 22.1 bp to 693.8bp (1Y range: 590-1,799bp)
  • Atlantia SpA (Country: IT; rated: Ba2): down 20.6 bp to 120.6bp (1Y range: 121-407bp)
  • Deutsche Lufthansa AG (Country: DE; rated: Ba2): down 18.4 bp to 246.1bp (1Y range: 246-421bp)
  • Iceland Bondco PLC (Country: GB; rated: LGD3 - 46%): down 17.6 bp to 420.9bp (1Y range: 358-1,004bp)
  • Air France KLM SA (Country: FR; rated: B-): down 17.5 bp to 427.9bp (1Y range: 428-1,211bp)
  • Casino Guichard Perrachon SA (Country: FR; rated: WR): down 16.9 bp to 542.3bp (1Y range: 516-1,210bp)
  • CMA CGM SA (Country: FR; rated: B1): down 12.3 bp to 320.5bp (1Y range: 321-1,197bp)
  • Stena AB (Country: SE; rated: B2-PD): down 11.9 bp to 536.5bp (1Y range: 534-803bp)
  • Banca Monte dei Paschi di Siena SpA (Country: IT; rated: PNP): down 9.3 bp to 197.5bp (1Y range: 188-237bp)
  • Jaguar Land Rover Automotive PLC (Country: GB; rated: WD): down 8.6 bp to 338.5bp (1Y range: 338-1,093bp)
  • Stonegate Pub Company Financing PLC (Country: GB; rated: WR): down 8.6 bp to 484.7bp (1Y range: 485-984bp)
  • Leonardo SpA (Country: IT; rated: Ba1): down 7.0 bp to 150.9bp (1Y range: 151-298bp)
  • Valeo SE (Country: FR; rated: BB): down 6.9 bp to 127.4bp (1Y range: 115-221bp)

USD BOND ISSUES

  • StoneCo Ltd (Financial - Other | Sao Paulo, Sao Paulo, Cayman Islands | Rating: NR): US$500m Bond (US861787AA77), fixed rate (3.95% coupon) maturing on 16 June 2028, priced at 100.00, non callable

EUR BOND ISSUES

  • Gateway Real Estate AG (Service - Other | Frankfurt, Hessen, Switzerland | Rating: NR): €150m Inhaberschuldverschreibung (DE000A3E5QK1), fixed rate (4.25% coupon) maturing on 25 June 2026, non callable
  • Hessen, State of (Official and Muni | Wiesbaden, Hessen, Germany | Rating: AA+): €600m Jumbo Landesschatzanweisung (DE000A1RQD43), fixed rate (0.01% coupon) maturing on 18 June 2031, priced at 99.86 (original spread of 30 bp), non callable
  • Nobel Bidco BV (Financial - Other | Amsterdam, Noord-Holland, Cayman Islands | Rating: B+): €650m Note (XS2355515946), fixed rate (3.13% coupon) maturing on 15 June 2028, priced at 100.00 (original spread of 366 bp), callable (7nc3)

NEW LOANS

  • Trafigura Beheer BV, signed a US$ 800m Revolving Credit / Term Loan, to be used for general corporate purposes
  • EnQuest PLC (CCC+), signed a US$ 600m Revolving Credit Facility and a US$ 150m Standby Letter of Credit, to be used for general corporate purposes and maturing on 06/11/28.
  • Vitol SA, signed a US$ 1,200m Revolving Credit Facility, to be used for refinancing bank debt. It matures on 06/11/22 and initial pricing is set at LIBOR +55.000bps
  • Starfruit Finco BV (B+), signed a € 1,190m Term Loan B, to be used for spinoff. It matures on 06/24/26.

NEW ISSUES IN SECURITIZED CREDIT

  • Bellemeade Re 2021-2 Ltd issued a floating-rate RMBS in 5 tranches, for a total of US$ 523 m. Highest-rated tranche offering a spread over the floating rate of 120bp, and the lowest-rated tranche a spread of 415bp. Bookrunners: JP Morgan & Co Inc, BNP Paribas Securities Corp
  • Pretium Mortgage Credit Partners I -Rn1 issued a fixed-rate RMBS in 2 tranches, for a total of US$ 294 m. Highest-rated tranche offering a yield to maturity of 1.99%, and the lowest-rated tranche a yield to maturity of 3.60%. Bookrunners: Morgan Stanley International Ltd
  • Bayfront Infrastructure Capital II Pte Ltd issued a floating-rate CLO in 5 tranches, for a total of US$ 361 m. Highest-rated tranche offering a spread over the floating rate of 120bp, and the lowest-rated tranche a spread of 340bp. Bookrunners: ING, Citigroup Global Markets Inc, Standard Chartered Bank