QUICK SUMMARY

• The iBoxx USD Liquid Investment Grade Total Return Index was down -0.155% today (Month-to-date: -0.15%; Year-to-date: -1.74%)
• The iBoxx USD Liquid High Yield Total Return Index was up 0.100% today (Month-to-date: 0.10%; Year-to-date: 3.14%)
• ICE BofA US Corporate Index (Investment Grade) spread to worst up 1.0 bp, now at 83.0 bp (YTD change: -15.0 bp)
• ICE BofA US High Yield Index spread to worst down -2.0 bp, now at 316.0 bp (YTD change: -74.0 bp)
• S&P/LSTA U.S. Leveraged Loan 100 Index down -0.01% today (YTD total return: +2.2%)
• New issues: US$ 2.0bn in dollars and € 3.3bn in euros

US CORPORATE OPTION-ADJUSTED SPREAD (OAS) BY RATING

• AAA unchanged at 44 bp
• AA up by 1 bp at 53 bp
• A up by 1 bp at 68 bp
• BBB up by 1 bp at 108 bp
• BB down by -3 bp at 216 bp
• B unchanged at 349 bp
• CCC down by -6 bp at 577 bp

CDS INDICES (mid-spreads)

• Markit CDX.NA.IG 5Y down 0.2 bp, now at 48bp (YTD change: -2.4bp)
• Markit CDX.NA.HY 5Y down 0.9 bp, now at 273bp (YTD change: -20.7bp)
• Markit iTRAXX Europe down 0.6 bp, now at 46bp (YTD change: -1.7bp)
• Markit iTRAXX Japan unchanged at 45bp (YTD change: -6.1bp)
• Markit iTRAXX Asia Ex-Japan unchanged at 84bp (YTD change: +25.4bp)

TOP BONDS MOVES IN THE PAST WEEK - USD HY

• Issuer: Guacolda Energia SA (LAS CONDES, Chile) | Coupon: 4.56% | Maturity: 30/4/2025 | Rating: B+ | ISIN: USP3711HAF66 | Z-spread up by 65.9 bp to 1,400.4 bp, with the yield to worst at 14.3% and the bond now trading down to 71.0 cents on the dollar (1Y price range: 71.0-92.1).
• Issuer: Syngenta Finance NV (Enkhuizen, Netherlands) | Coupon: 4.44% | Maturity: 24/4/2023 | Rating: BB | ISIN: USN84413CM88 | Z-spread up by 46.2 bp to 92.2 bp, with the yield to worst at 1.1% and the bond now trading down to 105.5 cents on the dollar (1Y price range: 101.5-106.4).
• Issuer: SoftBank Group Corp (Minato-ku, Japan) | Coupon: 4.75% | Maturity: 19/9/2024 | Rating: BB- | ISIN: XS1684384511 | Z-spread up by 45.7 bp to 230.6 bp, with the yield to worst at 2.8% and the bond now trading down to 105.3 cents on the dollar (1Y price range: 104.4-108.0).
• Issuer: Bank razvitiya Respubliki Belarus' OAO (MINSK, Belarus) | Coupon: 6.75% | Maturity: 2/5/2024 | Rating: B | ISIN: XS1904731129 | Z-spread up by 42.2 bp to 1,009.0 bp, with the yield to worst at 10.2% and the bond now trading down to 91.4 cents on the dollar (1Y price range: 91.3-102.5).
• Issuer: American Airlines Group Inc (Fort Worth, Texas (US)) | Coupon: 3.75% | Maturity: 1/3/2025 | Rating: CCC | ISIN: USU0242AAD47 | Z-spread up by 34.0 bp to 564.4 bp (CDS basis: 25.9bp), with the yield to worst at 6.1% and the bond now trading down to 91.9 cents on the dollar (1Y price range: 71.0-93.1).
• Issuer: Banco Safra SA (Cayman Islands Branch) (George Town, Cayman Islands) | Coupon: 4.13% | Maturity: 8/2/2023 | Rating: BB- | ISIN: US05964TAQ22 | Z-spread up by 26.1 bp to 195.3 bp, with the yield to worst at 2.0% and the bond now trading down to 103.0 cents on the dollar (1Y price range: 102.3-104.8).
• Issuer: Carnival Corp (Miami, Panama) | Coupon: 5.75% | Maturity: 1/3/2027 | Rating: B | ISIN: USP2121VAL82 | Z-spread up by 24.6 bp to 372.5 bp (CDS basis: -45.2bp), with the yield to worst at 4.5% and the bond now trading down to 104.8 cents on the dollar (1Y price range: 99.1-106.5).
• Issuer: WeWork Companies Inc (New York City, New York (US)) | Coupon: 7.88% | Maturity: 1/5/2025 | Rating: CC | ISIN: USU96217AA99 | Z-spread down by 23.7 bp to 589.0 bp, with the yield to worst at 6.2% and the bond now trading up to 104.5 cents on the dollar (1Y price range: 67.5-104.8).
• Issuer: FBN Finance Company BV (Amsterdam, Netherlands) | Coupon: 8.63% | Maturity: 27/10/2025 | Rating: B- | ISIN: XS2243733685 | Z-spread down by 24.3 bp to 612.0 bp, with the yield to worst at 6.6% and the bond now trading up to 106.6 cents on the dollar (1Y price range: 104.5-110.5).
• Issuer: MHP SE (Kiev, Cyprus) | Coupon: 7.75% | Maturity: 10/5/2024 | Rating: B | ISIN: XS1577965004 | Z-spread down by 25.5 bp to 391.1 bp, with the yield to worst at 4.2% and the bond now trading up to 108.9 cents on the dollar (1Y price range: 103.4-110.0).
• Issuer: Uzauto motors AO (Tashkent, Uzbekistan) | Coupon: 4.85% | Maturity: 4/5/2026 | Rating: B+ | ISIN: XS2330272944 | Z-spread down by 28.8 bp to 380.8 bp, with the yield to worst at 4.4% and the bond now trading up to 100.8 cents on the dollar (1Y price range: 98.3-100.8).
• Issuer: Firstenergy Transmission LLC (Fairmont, West Virginia (US)) | Coupon: 4.35% | Maturity: 15/1/2025 | Rating: BB | ISIN: USU3200VAB63 | Z-spread down by 41.0 bp to 46.6 bp (CDS basis: 17.6bp), with the yield to worst at 1.0% and the bond now trading up to 110.4 cents on the dollar (1Y price range: 107.4-110.5).

TOP BONDS MOVES IN THE PAST WEEK - EUR HY

• Issuer: SoftBank Group Corp (Minato-Ku, Japan) | Coupon: 5.00% | Maturity: 15/4/2028 | Rating: BB- | ISIN: XS1793255941 | Z-spread up by 49.6 bp to 334.3 bp, with the yield to worst at 2.9% and the bond now trading down to 110.8 cents on the dollar (1Y price range: 110.1-116.4).
• Issuer: Akropolis Group UAB (Vilnius, Lithuania) | Coupon: 2.88% | Maturity: 2/6/2026 | Rating: BB+ | ISIN: XS2346869097 | Z-spread up by 36.8 bp to 357.4 bp, with the yield to worst at 3.2% and the bond now trading down to 98.1 cents on the dollar (1Y price range: 97.8-99.4).
• Issuer: International Consolidated Airlines Group SA (London, Spain) | Coupon: 2.75% | Maturity: 25/3/2025 | Rating: B+ | ISIN: XS2322423455 | Z-spread up by 30.4 bp to 304.6 bp, with the yield to worst at 2.5% and the bond now trading down to 100.1 cents on the dollar (1Y price range: 97.9-101.3).
• Issuer: Deutsche Lufthansa AG (Cologne, Germany) | Coupon: 3.75% | Maturity: 11/2/2028 | Rating: BB- | ISIN: XS2296203123 | Z-spread up by 30.3 bp to 329.2 bp (CDS basis: -55.7bp), with the yield to worst at 3.0% and the bond now trading down to 103.5 cents on the dollar (1Y price range: 97.6-105.3).
• Issuer: Standard Industries Inc (Parsippany, New Jersey (US)) | Coupon: 2.25% | Maturity: 21/11/2026 | Rating: BB | ISIN: XS2080766475 | Z-spread up by 13.6 bp to 259.0 bp, with the yield to worst at 2.3% and the bond now trading down to 99.4 cents on the dollar (1Y price range: 97.4-102.9).
• Issuer: Renault SA (Boulogne-Billancourt, France) | Coupon: 1.13% | Maturity: 4/10/2027 | Rating: BB | ISIN: FR0013451416 | Z-spread up by 7.7 bp to 248.7 bp (CDS basis: -44.2bp), with the yield to worst at 2.1% and the bond now trading down to 93.1 cents on the dollar (1Y price range: 91.1-95.8).
• Issuer: Saipem Finance International BV (Amsterdam, Netherlands) | Coupon: 3.13% | Maturity: 31/3/2028 | Rating: BB | ISIN: XS2325696628 | Z-spread up by 7.4 bp to 291.8 bp (CDS basis: 86.7bp), with the yield to worst at 2.6% and the bond now trading down to 102.0 cents on the dollar (1Y price range: 98.5-102.9).
• Issuer: Esselunga SpA (Pioltello, Italy) | Coupon: 1.88% | Maturity: 25/10/2027 | Rating: BB+ | ISIN: XS1706922256 | Z-spread down by 7.7 bp to 115.6 bp, with the yield to worst at 0.8% and the bond now trading up to 105.2 cents on the dollar (1Y price range: 103.6-105.7).
• Issuer: Syngenta Finance NV (Enkhuizen, Netherlands) | Coupon: 1.25% | Maturity: 10/9/2027 | Rating: BB | ISIN: XS1199954691 | Z-spread down by 9.8 bp to 110.8 bp, with the yield to worst at 0.9% and the bond now trading up to 101.8 cents on the dollar (1Y price range: 93.2-102.0).
• Issuer: Adler Group SA (Senningerberg, Luxembourg) | Coupon: 3.25% | Maturity: 5/8/2025 | Rating: BB+ | ISIN: XS2010029663 | Z-spread down by 28.3 bp to 275.7 bp, with the yield to worst at 2.3% and the bond now trading up to 103.0 cents on the dollar (1Y price range: 99.5-105.4).

USD BOND ISSUES

• APX Group Inc (Financial - Other | Provo, United States | Rating: CCC): US$800m Senior Note (US00213MAW47), fixed rate (5.75% coupon) maturing on 15 July 2029, priced at 100.00 (original spread of 471 bp), callable (8nc3)
• Federal Farm Credit Banks Funding Corp (Agency | Jersey City, United States | Rating: AA+): US$200m Bond (US3133EMQ541), floating rate (PRQ + -316.5 bp) maturing on 7 July 2023, priced at 100.00, non callable
• Federal Farm Credit Banks Funding Corp (Agency | Jersey City, United States | Rating: AA+): US$650m Bond (US3133EMQ475), floating rate (SOFR + 2.5 bp) maturing on 7 July 2023, priced at 100.00, non callable
• Banco BTG Pactual SA (Cayman Islands Branch) (Banking | Brazil | Rating: NR): US$250m Senior Note (US05971BAH24), fixed rate (4.50% coupon) maturing on 10 January 2025, priced at 104.10, callable (4nc3)
• Barclays Bank PLC (Banking | London, United Kingdom | Rating: A): US$110m Unsecured Note (XS2354254166), floating rate maturing on 30 June 2029, priced at 100.00, non callable
• Nomura International Funding Pte Ltd (Financial - Other | Singapore | Rating: NR): US$20m Unsecured Note (XS2218450307), floating rate maturing on 22 June 2026, priced at 100.00, non callable

EUR BOND ISSUES

• Coventry Building Society (Mortgage Banking | Coventry, United Kingdom | Rating: A-): €750m Covered Bond (Other) (XS2360599281), fixed rate (0.01% coupon) maturing on 7 July 2028, priced at 99.86 (original spread of 51 bp), non callable
• Elior Group SA (Restaurants | Paris, France | Rating: BB-): €550m Senior Note (XS2360381730), fixed rate (3.75% coupon) maturing on 15 July 2026, priced at 100.00, callable (5nc2)
• Inmobiliaria Colonial SOCIMI SA (Home Builders | Barcelona, Spain | Rating: BBB): €125m Senior Note (ES0239140033), fixed rate (0.75% coupon) maturing on 22 June 2029, priced at 98.73 (original spread of 132 bp), callable (8nc8)
• Societe Generale Luxembourg SA (Banking | Luxembourg, France | Rating: A): €230m Unsecured Note (XS2347496502) zero coupon maturing on 1 October 2031, non callable
• Societe Generale Luxembourg SA (Banking | Luxembourg, France | Rating: A): €230m Unsecured Note (XS2347496684) zero coupon maturing on 15 October 2031, non callable
• Societe Generale SA (Banking | Paris, France | Rating: A): €1,000m Bond (FR0014004GE5), fixed rate (0.25% coupon) maturing on 8 July 2027, priced at 99.91, non callable
• Titan Holdings II BV (Financial - Other | Amsterdam, Netherlands | Rating: CCC+): €375m Senior Note (XS2359953283), fixed rate (5.13% coupon) maturing on 15 July 2029, priced at 100.00 (original spread of 542 bp), callable (8nc3)

NEW LOANS

• Idverde SASU, signed a € 335m Term Loan B, to be used for general corporate purposes. It matures on 07/13/28 and initial pricing is set at EURIBOR +500bp

NEW ISSUES IN SECURITIZED CREDIT

• Firstkey Homes 2021-SFR1 issued a fixed-rate RMBS in 7 tranches, for a total of US$ 1,690 m. Highest-rated tranche offering a yield to maturity of 1.54%, and the lowest-rated tranche a yield to maturity of 3.24%. Bookrunners: Morgan Stanley International Ltd
• Fat Brands WBS FGFG 2021-1 issued a fixed-rate ABS backed by business cashflow in 1 tranche of US$ 209 m offering a yield to maturity of 6.00%. Bookrunners: Jefferies & Co Inc