QUICK SUMMARY

• S&P 500 Bond Index was up 0.40% today, with investment grade up 0.44% and high yield up 0.02% (YTD total return: -1.60%)
• ICE BofA US Corporate Index (Investment Grade) spread to worst unchanged at 83.0 bp (YTD change: -15.0 bp)
• ICE BofA US High Yield Index spread to worst up 3.0 bp, now at 329.0 bp (YTD change: -61.0 bp)
• S&P/LSTA U.S. Leveraged Loan 100 Index down -0.03% today (YTD total return: +2.2%)

US CORPORATE OPTION-ADJUSTED SPREAD (OAS) BY RATING

• AAA down by -1 bp at 44 bp
• AA unchanged at 53 bp
• A unchanged at 67 bp
• BBB unchanged at 108 bp
• BB up by 3 bp at 227 bp
• B up by 4 bp at 356 bp
• CCC unchanged at 601 bp

CDS INDICES (mid-spreads)

• Markit CDX.NA.IG 5Y up 0.3 bp, now at 50bp (YTD change: -0.3bp)
• Markit CDX.NA.HY 5Y unchanged at 281bp (YTD change: -11.9bp)
• Markit iTRAXX Europe down 0.1 bp, now at 47bp (YTD change: -0.5bp)
• Markit iTRAXX Japan unchanged at 45bp (YTD change: -6.6bp)
• Markit iTRAXX Asia Ex-Japan up 1.1 bp, now at 84bp (YTD change: +26.4bp)

TOP BONDS MOVERS - USD HY

• Issuer: Rail Capital Markets PLC (KOCAELI, Turkey) | Coupon: 8.25% | Maturity: 9/7/2024 | Rating: B | ISIN: XS1843433472 | Z-spread down by 33.7 bp to 596.1 bp, with the yield to worst at 6.0% and the bond now trading up to 105.1 cents on the dollar (1Y price range: 101.8-107.0).
• Issuer: Centrais Eletricas Brasileiras SA (Istanbul, Turkey) | Coupon: 3.63% | Maturity: 4/2/2025 | Rating: BB- | ISIN: USP22835AA30 | Z-spread down by 34.1 bp to 203.1 bp (CDS basis: -79.2bp), with the yield to worst at 2.4% and the bond now trading up to 103.3 cents on the dollar (1Y price range: 100.2-104.1).
• Issuer: Molina Healthcare Inc (Istanbul, Turkey) | Coupon: 3.88% | Maturity: 15/11/2030 | Rating: BB- | ISIN: USU60868AD52 | Z-spread down by 36.9 bp to 210.4 bp, with the yield to worst at 3.4% and the bond now trading up to 102.9 cents on the dollar (1Y price range: 100.5-107.8).
• Issuer: Taylor Morrison Communities Inc (Los Gatos, California (US)) | Coupon: 5.88% | Maturity: 15/4/2023 | Rating: BB- | ISIN: USU8759MAA28 | Z-spread down by 37.7 bp to 128.3 bp, with the yield to worst at 1.3% and the bond now trading up to 106.8 cents on the dollar (1Y price range: 105.3-112.0).
• Issuer: Syngenta Finance NV (New York City, New York (US)) | Coupon: 4.89% | Maturity: 24/4/2025 | Rating: BB | ISIN: USN84413CL06 | Z-spread down by 41.4 bp to 138.4 bp, with the yield to worst at 1.9% and the bond now trading up to 110.0 cents on the dollar (1Y price range: 100.0-110.3).
• Issuer: MGM Growth Properties Operating Partnership LP (London, United Kingdom) | Coupon: 4.63% | Maturity: 15/6/2025 | Rating: B+ | ISIN: USU5930BAD83 | Z-spread down by 45.7 bp to 215.5 bp, with the yield to worst at 2.6% and the bond now trading up to 106.3 cents on the dollar (1Y price range: 103.6-107.3).

TOP BONDS MOVERS - EUR HY

• Issuer: Banca Monte dei Paschi di Siena SpA (Siena, Italy) | Coupon: 1.88% | Maturity: 9/1/2026 | Rating: CCC+ | ISIN: XS2270393379 | Z-spread up by 57.3 bp to 290.4 bp, with the yield to worst at 2.4% and the bond now trading down to 96.9 cents on the dollar (1Y price range: 97.0-102.9).
• Issuer: Cellnex Telecom SA (Barcelona, Spain) | Coupon: 4.75% | Maturity: 26/2/2029 | Rating: BB- | ISIN: XS1824424706 | Z-spread up by 14.0 bp to 489.9 bp (CDS basis: -69.0bp), with the yield to worst at 4.7% and the bond now trading down to 99.7 cents on the dollar (1Y price range: 95.6-102.0).
• Issuer: Dometic Group AB (publ) (Solna, Sweden) | Coupon: 1.63% | Maturity: 30/4/2026 | Rating: BB- | ISIN: XS2332589972 | Z-spread up by 9.7 bp to 209.0 bp, with the yield to worst at 1.7% and the bond now trading down to 99.2 cents on the dollar (1Y price range: 98.3-100.3).
• Issuer: International Consolidated Airlines Group SA (London, Spain) | Coupon: 1.38% | Maturity: 17/6/2025 | Rating: BB+ | ISIN: XS2189592616 | Z-spread up by 7.8 bp to 133.5 bp, with the yield to worst at 0.9% and the bond now trading down to 101.4 cents on the dollar (1Y price range: 100.9-103.4).
• Issuer: Jaguar Land Rover Automotive PLC (Coventry, United Kingdom) | Coupon: 2.75% | Maturity: 13/11/2026 | Rating: BB+ | ISIN: XS2248826294 | Z-spread up by 7.1 bp to 249.8 bp, with the yield to worst at 2.1% and the bond now trading down to 102.4 cents on the dollar (1Y price range: 100.7-103.2).
• Issuer: Louis Dreyfus Co BV (Rotterdam, Netherlands) | Coupon: 1.88% | Maturity: 31/3/2027 | Rating: BB- | ISIN: XS1211044075 | Z-spread up by 7.1 bp to 360.3 bp, with the yield to worst at 3.2% and the bond now trading down to 92.2 cents on the dollar (1Y price range: 90.5-95.4).
• Issuer: Deutsche Lufthansa AG (Cologne, Germany) | Coupon: 1.75% | Maturity: 26/6/2026 | Rating: BB- | ISIN: XS1327504087 | Z-spread up by 6.5 bp to 132.4 bp (CDS basis: -13.4bp), with the yield to worst at 0.9% and the bond now trading down to 103.4 cents on the dollar (1Y price range: 99.0-103.9).
• Issuer: Standard Industries Inc (Parsippany, New Jersey (US)) | Coupon: 2.33% | Maturity: 25/11/2025 | Rating: BB | ISIN: XS2052337503 | Z-spread up by 6.4 bp to 180.3 bp (CDS basis: -22.2bp), with the yield to worst at 1.3% and the bond now trading down to 103.6 cents on the dollar (1Y price range: 100.4-104.3).
• Issuer: Syngenta Finance NV (Enkhuizen, Netherlands) | Coupon: 3.38% | Maturity: 16/4/2026 | Rating: BB | ISIN: XS2154325489 | Z-spread down by 7.1 bp to 129.6 bp, with the yield to worst at 0.9% and the bond now trading up to 110.6 cents on the dollar (1Y price range: 102.3-110.8).
• Issuer: Saipem Finance International BV (Amsterdam, Netherlands) | Coupon: 2.38% | Maturity: 27/11/2025 | Rating: BB+ | ISIN: XS2264074647 | Z-spread down by 9.6 bp to 135.1 bp (CDS basis: -24.3bp), with the yield to worst at 0.9% and the bond now trading up to 105.5 cents on the dollar (1Y price range: 102.8-106.0).

PERFORMANCE OF RECENT ISSUES

USD BOND ISSUES

• Eagle Materials Inc (Building Products | Dallas, United States | Rating: BBB): US$750m Senior Note (US26969PAB40), fixed rate (2.50% coupon) maturing on 1 July 2031, priced at 99.16 (original spread of 118 bp), callable (10nc10)
• Federal Farm Credit Banks Funding Corp (Agency | Jersey City, United States | Rating: AA+): US$175m Bond (US3133EML914), floating rate (SOFR + 6.0 bp) maturing on 24 June 2024, priced at 100.00, non callable
• Federal Home Loan Banks (Agency | Washington, United States | Rating: NR): US$300m Bond (US3130AMY713), fixed rate (0.50% coupon) maturing on 28 June 2024, priced at 100.00, callable (3nc3m)
• Federal Home Loan Banks (Agency | Washington, United States | Rating: NR): US$475m Bond (US3130AMXR84), fixed rate (1.13% coupon) maturing on 26 June 2026, priced at 100.00 (original spread of 106 bp), callable (5nc1m)
• Sun Communities Operating LP (Financial - Other | Southfield, United States | Rating: BBB-): US$600m Senior Note (US866677AE75), fixed rate (2.70% coupon) maturing on 15 July 2031, priced at 99.47 (original spread of 125 bp), callable (10nc10)
• GXO Logistics Inc (Transportation - Other | Greenwich | Rating: NR): US$400m Senior Note (US36262GAA94), fixed rate (1.65% coupon) maturing on 15 July 2026, priced at 99.83 (original spread of 80 bp), callable (5nc5)
• Shinhan Investment Corp (Securities | Seoul, Seoul, South Korea | Rating: A-): US$200m Index Linked Security (KR6SH0001PK0) zero coupon maturing on 2 July 2024, priced at 100.00, non callable

EUR BOND ISSUES

• Canadian Imperial Bank of Commerce (Banking | Toronto, Ontario, Canada | Rating: A+): €300m Unsecured Note (XS2355083895), floating rate maturing on 21 June 2023, priced at 100.00, non callable

NEW LOANS

• Boyd Watterson GSA Reit, signed a US$ 650m Revolving Credit Facility, to be used for general corporate purposes. It matures on 06/30/26 and initial pricing is set at LIBOR +120.000bps
• HCA Inc, signed a US$ 3,750m Revolving Credit Facility, to be used for general corporate purposes. It matures on 06/18/26 and initial pricing is set at LIBOR +125.000bps
• Alora Pharms LLC, signed a US$ 125m Revolving Credit Facility, to be used for general corporate purposes. It matures on 06/30/26.
• Nissan Motor Acceptance Corp (BBB-), signed a US$ 1,635m Revolving Credit Facility, to be used for general corporate purposes. It matures on 06/17/26 and initial pricing is set at LIBOR +175.000bps
• Canadian National Railway Co (A), signed a US$ 2,000m Delayed Draw Term Loan, to be used for acquisition financing. It matures on 06/17/26.
• International Paper Co (BBB), signed a US$ 1,500m Revolving Credit Facility, to be used for general corporate purposes. It matures on 06/17/26 and initial pricing is set at LIBOR +135.000bps
• Crown Castle International (BBB-), signed , to be used for general corporate purposes. It matures on 06/18/26 and initial pricing is set at LIBOR +112.500bps
• Crown Castle International (BBB-), signed a US$ 5,000m Revolving Credit Facility and a US$ 1,238m Term Loan A, both to be used for general corporate purposes. Maturity: 06/18/26 and initial pricing is set at LIBOR +112.500bps
• Tanger Factory Outlet Centers (BBB-), signed a US$ 450m Revolving Credit Facility, to be used for general corporate purposes. It matures on 06/30/25.

NEW ISSUES IN SECURITIZED CREDIT

• Audax Senior Debt Clo 5 LLC issued a floating-rate CLO in 3 tranches, for a total of US$ 380 m. Highest-rated tranche offering a spread over the floating rate of 160bp, and the lowest-rated tranche a spread of 285bp. Bookrunners: Wells Fargo Securities LLC