QUICK SUMMARY

• The iBoxx USD Liquid Investment Grade Total Return Index was up 0.04% today (Month-to-date: 0.96%; Year-to-date: -0.64%)
• The iBoxx USD Liquid High Yield Total Return Index was down -0.15% today (Month-to-date: 0.22%; Year-to-date: 3.26%)
• ICE BofA US Corporate Index (Investment Grade) spread to worst up 2.0 bp, now at 86.0 bp (YTD change: -12.0 bp)
• ICE BofA US High Yield Index spread to worst up 9.0 bp, now at 327.0 bp (YTD change: -63.0 bp)
• S&P/LSTA U.S. Leveraged Loan 100 Index down -0.06% today (YTD total return: +2.2%)
• New issues: US$ 3.5bn in dollars and € 7.1bn in euros

US CORPORATE OPTION-ADJUSTED SPREAD (OAS) BY RATING

• AAA up by 1 bp at 48 bp
• AA up by 2 bp at 56 bp
• A up by 2 bp at 71 bp
• BBB up by 3 bp at 112 bp
• BB up by 7 bp at 225 bp
• B up by 11 bp at 364 bp
• CCC up by 12 bp at 591 bp

CDS INDICES (mid-spreads)

• Markit CDX.NA.IG 5Y up 1.1 bp, now at 49bp (YTD change: -0.9bp)
• Markit CDX.NA.HY 5Y up 7.1 bp, now at 282bp (YTD change: -10.8bp)
• Markit iTRAXX Europe up 1.4 bp, now at 48bp (YTD change: -0.3bp)
• Markit iTRAXX Japan up 0.1 bp, now at 45bp (YTD change: -5.9bp)
• Markit iTRAXX Asia Ex-Japan up 2.1 bp, now at 89bp (YTD change: +31.0bp)

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 187.9 bp to 1,746.4 bp, with the yield to worst at 17.6% and the bond now trading down to 63.9 cents on the dollar (1Y price range: 64.0-92.1).
• Issuer: Vedanta Resources Finance II PLC (London, United Kingdom) | Coupon: 8.95% | Maturity: 11/3/2025 | Rating: B- | ISIN: USG9T27HAD62 | Z-spread up by 59.3 bp to 952.6 bp, with the yield to worst at 9.8% and the bond now trading down to 96.5 cents on the dollar (1Y price range: 94.3-99.8).
• Issuer: American Airlines Group Inc (Fort Worth, Texas (US)) | Coupon: 3.75% | Maturity: 1/3/2025 | Rating: CCC | ISIN: USU0242AAD47 | Z-spread up by 54.3 bp to 621.0 bp (CDS basis: -26.7bp), with the yield to worst at 6.5% and the bond now trading down to 90.6 cents on the dollar (1Y price range: 71.0-93.1).
• Issuer: WeWork Companies Inc (New York City, New York (US)) | Coupon: 7.88% | Maturity: 1/5/2025 | Rating: CC | ISIN: USU96217AA99 | Z-spread up by 33.4 bp to 624.1 bp, with the yield to worst at 6.4% and the bond now trading down to 103.8 cents on the dollar (1Y price range: 67.5-104.8).
• Issuer: NCL Corporation Ltd (Miami, Bermuda) | Coupon: 5.88% | Maturity: 15/3/2026 | Rating: CCC+ | ISIN: USG6436QAL08 | Z-spread up by 32.3 bp to 418.3 bp, with the yield to worst at 4.8% and the bond now trading down to 103.8 cents on the dollar (1Y price range: 98.5-105.3).
• Issuer: SoftBank Group Corp (Minato-ku, Japan) | Coupon: 6.00% | Maturity: 30/7/2025 | Rating: BB- | ISIN: XS1266660122 | Z-spread up by 30.9 bp to 290.2 bp, with the yield to worst at 3.4% and the bond now trading down to 108.8 cents on the dollar (1Y price range: 108.6-112.5).
• Issuer: Royal Caribbean Cruises Ltd (Miami, Liberia) | Coupon: 5.50% | Maturity: 1/4/2028 | Rating: B | ISIN: USV7780TAE39 | Z-spread up by 30.6 bp to 375.9 bp (CDS basis: 6.6bp), with the yield to worst at 4.6% and the bond now trading down to 104.0 cents on the dollar (1Y price range: 100.1-105.9).
• Issuer: Bank Muscat SAOG (Muscat, Oman) | Coupon: 4.75% | Maturity: 17/3/2026 | Rating: BB- | ISIN: XS2310799809 | Z-spread up by 26.0 bp to 326.7 bp, with the yield to worst at 3.8% and the bond now trading down to 103.3 cents on the dollar (1Y price range: 101.7-105.1).
• Issuer: Seazen Group Ltd (Shanghai, Cayman Islands) | Coupon: 6.00% | Maturity: 12/8/2024 | Rating: BB+ | ISIN: XS2215175634 | Z-spread up by 25.1 bp to 437.7 bp, with the yield to worst at 4.5% and the bond now trading down to 103.4 cents on the dollar (1Y price range: 102.3-105.8).
• Issuer: Taylor Morrison Communities Inc (Scottsdale, Arizona (US)) | Coupon: 5.88% | Maturity: 15/6/2027 | Rating: BB- | ISIN: USU8760NAA73 | Z-spread up by 25.0 bp to 257.4 bp, with the yield to worst at 3.3% and the bond now trading down to 112.4 cents on the dollar (1Y price range: 108.5-113.6).
• Issuer: Tata Motors Ltd (Mumbai, India) | Coupon: 5.88% | Maturity: 20/5/2025 | Rating: B+ | ISIN: XS2079668609 | Z-spread up by 24.7 bp to 345.3 bp (CDS basis: -101.5bp), with the yield to worst at 3.8% and the bond now trading down to 106.5 cents on the dollar (1Y price range: 103.4-107.1).
• Issuer: Icahn Enterprises LP (Sunny Isles Beach, Florida (US)) | Coupon: 4.38% | Maturity: 1/2/2029 | Rating: BB- | ISIN: USU44927AZ18 | Z-spread up by 23.9 bp to 329.2 bp, with the yield to worst at 4.3% and the bond now trading down to 99.9 cents on the dollar (1Y price range: 96.3-101.5).
• Issuer: Syngenta Finance NV (Enkhuizen, Netherlands) | Coupon: 4.44% | Maturity: 24/4/2023 | Rating: BB | ISIN: USN84413CM88 | Z-spread down by 28.9 bp to 93.1 bp, with the yield to worst at 1.0% and the bond now trading up to 105.5 cents on the dollar (1Y price range: 101.5-106.4).
• Issuer: Dilijan Finance BV (Amsterdam, Netherlands) | Coupon: 6.50% | Maturity: 28/1/2025 | Rating: B+ | ISIN: XS2080321198 | Z-spread down by 30.9 bp to 570.8 bp, with the yield to worst at 5.9% and the bond now trading up to 101.0 cents on the dollar (1Y price range: 93.6-101.0).
• Issuer: Banco Safra SA (Cayman Islands Branch) (George Town, Cayman Islands) | Coupon: 4.13% | Maturity: 8/2/2023 | Rating: BB- | ISIN: US05964TAQ22 | Z-spread down by 36.5 bp to 122.2 bp, with the yield to worst at 1.2% and the bond now trading up to 104.2 cents on the dollar (1Y price range: 102.3-104.8).

TOP BONDS MOVES IN THE PAST WEEK - EUR HY

• Issuer: Deutsche Lufthansa AG (Cologne, Germany) | Coupon: 3.75% | Maturity: 11/2/2028 | Rating: BB- | ISIN: XS2296203123 | Z-spread up by 33.6 bp to 364.8 bp (CDS basis: -80.4bp), with the yield to worst at 3.3% and the bond now trading down to 101.9 cents on the dollar (1Y price range: 97.6-105.3).
• Issuer: Saipem Finance International BV (Amsterdam, Netherlands) | Coupon: 3.13% | Maturity: 31/3/2028 | Rating: BB | ISIN: XS2325696628 | Z-spread up by 29.0 bp to 328.2 bp (CDS basis: 50.5bp), with the yield to worst at 2.9% and the bond now trading down to 100.3 cents on the dollar (1Y price range: 98.5-102.9).
• Issuer: Petroleos Mexicanos (Miguel Hidalgo, Mexico) | Coupon: 4.88% | Maturity: 21/2/2028 | Rating: BB- | ISIN: XS1568888777 | Z-spread up by 15.2 bp to 495.0 bp (CDS basis: -83.0bp), with the yield to worst at 4.6% and the bond now trading down to 100.8 cents on the dollar (1Y price range: 97.7-103.3).
• Issuer: International Consolidated Airlines Group SA (London, Spain) | Coupon: 3.75% | Maturity: 25/3/2029 | Rating: B+ | ISIN: XS2322423539 | Z-spread up by 14.0 bp to 389.7 bp, with the yield to worst at 3.6% and the bond now trading down to 100.1 cents on the dollar (1Y price range: 97.5-102.0).
• Issuer: Standard Industries Inc (Parsippany, New Jersey (US)) | Coupon: 2.25% | Maturity: 21/11/2026 | Rating: BB | ISIN: XS2080766475 | Z-spread up by 9.9 bp to 272.0 bp, with the yield to worst at 2.4% and the bond now trading down to 99.1 cents on the dollar (1Y price range: 97.4-102.9).
• Issuer: Mahle GmbH (Stuttgart, Germany) | Coupon: 2.38% | Maturity: 14/5/2028 | Rating: BB+ | ISIN: XS2341724172 | Z-spread up by 8.4 bp to 268.9 bp, with the yield to worst at 2.4% and the bond now trading down to 99.3 cents on the dollar (1Y price range: 99.1-100.9).
• Issuer: Renault SA (Boulogne-Billancourt, France) | Coupon: 2.50% | Maturity: 1/4/2028 | Rating: BB | ISIN: FR0014002OL8 | Z-spread up by 7.9 bp to 268.2 bp (CDS basis: -62.0bp), with the yield to worst at 2.3% and the bond now trading down to 100.2 cents on the dollar (1Y price range: 98.4-101.3).
• Issuer: Adler Group SA (Senningerberg, Luxembourg) | Coupon: 1.88% | Maturity: 14/1/2026 | Rating: BB+ | ISIN: XS2283224231 | Z-spread up by 7.8 bp to 276.4 bp, with the yield to worst at 2.3% and the bond now trading down to 97.7 cents on the dollar (1Y price range: 96.4-99.6).
• Issuer: Telecom Italia SpA (Rome, Italy) | Coupon: 1.63% | Maturity: 18/1/2029 | Rating: BB | ISIN: XS2288109676 | Z-spread up by 6.8 bp to 206.4 bp (CDS basis: 1.6bp), with the yield to worst at 1.9% and the bond now trading down to 98.1 cents on the dollar (1Y price range: 96.8-100.1).
• Issuer: ACS Actividades de Construccion y Servicios SA (Madrid, Spain) | Coupon: 1.38% | Maturity: 17/6/2025 | Rating: BB+ | ISIN: XS2189592616 | Z-spread up by 6.6 bp to 134.7 bp, with the yield to worst at 0.9% and the bond now trading down to 101.5 cents on the dollar (1Y price range: 100.9-103.4).
• Issuer: Syngenta Finance NV (Enkhuizen, Netherlands) | Coupon: 1.25% | Maturity: 10/9/2027 | Rating: BB | ISIN: XS1199954691 | Z-spread down by 12.5 bp to 97.4 bp, with the yield to worst at 0.7% and the bond now trading up to 103.0 cents on the dollar (1Y price range: 93.2-103.0).
• Issuer: Akropolis Group UAB (Vilnius, Lithuania) | Coupon: 2.88% | Maturity: 2/6/2026 | Rating: BB+ | ISIN: XS2346869097 | Z-spread down by 13.7 bp to 354.4 bp, with the yield to worst at 3.1% and the bond now trading up to 98.5 cents on the dollar (1Y price range: 97.8-99.4).

USD BOND ISSUES

• Federal Farm Credit Banks Funding Corp (Agency | Jersey City, New Jersey, United States | Rating: AA+): US$180m Bond (US3133EMS786), fixed rate (2.00% coupon) maturing on 14 April 2033, priced at 100.00 (original spread of 72 bp), callable (12nc3m)
• Federal Farm Credit Banks Funding Corp (Agency | Jersey City, New Jersey, United States | Rating: AA+): US$210m Bond (US3133EMR952), fixed rate (2.31% coupon) maturing on 14 July 2036, priced at 100.00 (original spread of 85 bp), callable (15nc1)
• Federal Farm Credit Banks Funding Corp (Agency | Jersey City, New Jersey, United States | Rating: AA+): US$140m Bond (US3133EMS869), fixed rate (2.00% coupon) maturing on 14 July 2033, priced at 100.00, callable (12nc1)
• Federal Farm Credit Banks Funding Corp (Agency | Jersey City, New Jersey, United States | Rating: AA+): US$350m Bond (US3133EMS372), fixed rate (0.13% coupon) maturing on 14 July 2023, priced at 100.00, non callable
• Federal Farm Credit Banks Funding Corp (Agency | Jersey City, New Jersey, United States | Rating: AA+): US$150m Bond (US3133EMS521), floating rate (PRQ + -310.0 bp) maturing on 15 July 2024, priced at 100.00, non callable
• Federal Farm Credit Banks Funding Corp (Agency | Jersey City, New Jersey, United States | Rating: AA+): US$170m Bond (US3133EMQ707), fixed rate (1.15% coupon) maturing on 14 October 2027, priced at 100.00 (original spread of 114 bp), callable (6nc3m)
• Bright Galaxy International Ltd (Financial - Other | Hong Kong | Rating: NR): US$517m Bond (XS2314498333), fixed rate (3.25% coupon) maturing on 15 July 2026, priced at 99.11 (original spread of 270 bp), non callable
• Deutsche Bank AG (Banking | Frankfurt, Hessen, Germany | Rating: BBB): US$500m Note (XS0459855390), fixed rate (1.35% coupon) maturing on 5 August 2027, priced at 100.00, non callable
• Dexia Credit Local SA (Banking | Courbevoie, Ile-De-France, Belgium | Rating: BBB-): US$1,000m Senior Note (US25214BBB99), fixed rate (0.50% coupon) maturing on 16 July 2024, priced at 99.79 (original spread of 20 bp), non callable
• Rail Capital Markets PLC (Financial - Other | London, United Kingdom | Rating: NR): US$300m Loan Participation Note (XS2365120885), fixed rate (7.88% coupon) maturing on 15 July 2026, priced at 100.00, callable (5nc5)

EUR BOND ISSUES

• Action Logement Services SASU (Service - Other | Paris, Ile-De-France, France | Rating: AA): €1,000m Senior Note (FR0014004JA7), fixed rate (0.75% coupon) maturing on 19 July 2041, priced at 98.75 (original spread of 92 bp), non callable
• Baden Wuerttemberg, State of (Official and Muni | Stuttgart, Baden-Wuerttemberg, Germany | Rating: AA+): €750m Jumbo Landesschatzanweisung (DE000A14JZT4), floating rate (EU06MLIB + 100.0 bp) maturing on 20 July 2026, priced at 105.47, non callable
• Banco BPM SpA (Banking | Verona, Verona, Italy | Rating: BB): €500m Note (XS2365097455), fixed rate (0.88% coupon) maturing on 15 July 2026, priced at 99.49 (original spread of 164 bp), non callable
• Credit Industriel et Commercial SA (Banking | Paris, France | Rating: A): €150m Unsecured Note (XS2365074249), fixed rate (3.90% coupon) maturing on 20 December 2029, priced at 100.00, non callable
• Credit Mutuel Home Loan SFH SA (Financial - Other | Paris, Ile-De-France, France | Rating: NR): €1,000m Obligation de Financement de l'Habitat (Covered Bond) (FR0014004KP3), fixed rate (0.01% coupon) maturing on 20 July 2028, priced at 101.20 (original spread of 37 bp), non callable
• Deutsche Bank AG (Banking | Frankfurt, Hessen, Germany | Rating: BBB): €500m Inhaberschuldverschreibung (DE000DB9U4M0), floating rate maturing on 9 August 2028, priced at 100.00, non callable
• DZ Hyp AG (Mortgage Banking | Hamburg, Hamburg, Germany | Rating: A+): €750m Hypothekenpfandbrief (Covered Bond) (DE000A3E5UU2), fixed rate (0.01% coupon) maturing on 15 November 2030, priced at 100.43 (original spread of 38 bp), non callable
• International Development Association (Supranational | Washington, Washington Dc, United States | Rating: AAA): €2,000m Senior Note (XS2364756036) zero coupon maturing on 15 July 2031, priced at 99.77 (original spread of 39 bp), non callable
• Motor Oil Hellas Corinth Refineries SA (Oil and Gas | Athina, Attiki, Greece | Rating: NR): €400m Senior Note (XS2364001151), fixed rate (2.13% coupon) maturing on 19 July 2026, priced at 99.47 (original spread of 290 bp), non callable

NEW LOANS

• DirecTV Holdings LLC (BBB), signed a US$ 3,100m Term Loan B, to be used for leveraged buyout. It matures on 07/22/27 and initial pricing is set at LIBOR +525.000bps
• DirecTV Holdings LLC (BBB), signed a US$ 500m Revolving Credit Facility, to be used for leveraged buyout.
• Asurion Corp (B), signed a US$ 2,800m Term Loan. It matures on 02/03/28 and initial pricing is set at LIBOR +550.000bps
• Asurion Corp (B), signed a US$ 500m Term Loan B. It matures on 07/31/27 and initial pricing is set at LIBOR +325.000bps
• American Trailer World Corp (B), signed a US$ 475m Term Loan B. It matures on 03/05/28 and initial pricing is set at LIBOR +375.000bps
• Infinitas Learning Holding BV, signed a € 489m Term Loan B, to be used for acquisition financing. It matures on 07/31/28.

NEW ISSUES IN SECURITIZED CREDIT

• Freddie Mac Spc 2021-Kf115 issued a floating-rate Agency CMBS in 1 tranche, for a total of US$ 900 m. Highest-rated tranche offering a spread over the floating rate of 21bp, and the lowest-rated tranche a spread of 21bp. Bookrunners: JP Morgan & Co Inc, Citigroup Global Markets Inc