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US Corporate Investment Grade Bonds Down On Higher Rates, While High Yield Bonds Inched Up On Tighter Spreads

Very quiet Friday in the primary market, but Jaguar Land Rover printed €500m and US$500m with a two-part cross-border bond offering; totals this week from IFR data: US$18.3bn in IG (US$20bn-$25bn forecast for next week) and US$1.625bn in HY

Published ET

Talen Energy Supply LLC 5-Year USD CDS Spread | Source: Refinitiv

Talen Energy Supply LLC 5-Year USD CDS Spread | Source: Refinitiv

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QUICK SUMMARY

  • S&P 500 Bond Index was down -0.41% today, with investment grade down -0.45% and high yield down -0.10% (YTD total return: -0.53%)
  • The iBoxx USD Liquid Investment Grade Total Return Index was down -0.52% today (Month-to-date: 0.44%; Year-to-date: -1.16%)
  • The iBoxx USD Liquid High Yield Total Return Index was up 0.05% today (Month-to-date: 0.27%; Year-to-date: 3.32%)
  • ICE BofA US Corporate Index (Investment Grade) spread to worst unchanged, now at 86.0 bp (YTD change: -12.0 bp)
  • ICE BofA US High Yield Index spread to worst down -7.0 bp, now at 320.0 bp (YTD change: -70.0 bp)
  • S&P/LSTA U.S. Leveraged Loan 100 Index down -0.07% today (YTD total return: +2.1%)
  • New issues: US$ 2.0bn in dollars and € 1.0bn in euros

US CORPORATE OPTION-ADJUSTED SPREAD (OAS) BY RATING

  • AAA unchanged at 48 bp
  • AA unchanged at 56 bp
  • A unchanged at 71 bp
  • BBB down by -1 bp at 111 bp
  • BB down by -6 bp at 219 bp
  • B down by -10 bp at 354 bp
  • CCC down by -2 bp at 589 bp
ICE BofAML US Corporate Spreads By Rating | Sources: phipost, RefinitivICE BofA US Corporate Spreads to Worst IG & HY | Sources: phipost, Refinitiv

CDS INDICES (mid-spreads)

  • Markit CDX.NA.IG 5Y down 1.1 bp, now at 48bp (YTD change: -2.0bp)
  • Markit CDX.NA.HY 5Y down 6.2 bp, now at 276bp (YTD change: -17.1bp)
  • Markit iTRAXX Europe down 1.0 bp, now at 47bp (YTD change: -1.3bp)
  • Markit iTRAXX Japan up 0.4 bp, now at 46bp (YTD change: -5.5bp)
  • Markit iTRAXX Asia Ex-Japan up 0.1 bp, now at 89bp (YTD change: +31.1bp)
CDX.NA Indices Mid Spreads | Sources: phipost, RefinitiviTRAXX Indices Mid Spreads | Sources: phipost, Refinitiv

LARGEST USD CORPORATE CDS MOVES IN THE PAST WEEK

  • Transocean Inc (Country: KY; rated: Caa3): down 157.6 bp to 1,099.6bp (1Y range: 941-7,695bp)
  • Bombardier Inc (Country: CA; rated: Caa2): down 46.7 bp to 460.1bp (1Y range: 437-1,912bp)
  • Pitney Bowes Inc (Country: US; rated: LGD2 - 16%): down 21.1 bp to 416.0bp (1Y range: 366-1,458bp)
  • Staples Inc (Country: US; rated: B2): down 18.9 bp to 838.4bp (1Y range: 652-2,081bp)
  • Calpine Corp (Country: US; rated: LGD5 - 88%): down 18.1 bp to 300.4bp (1Y range: 173-349bp)
  • Sabre Holdings Corp (Country: US; rated: Ba3): down 14.8 bp to 355.0bp (1Y range: 337-611bp)
  • iStar Inc (Country: US; rated: BBB-): down 14.2 bp to 257.2bp (1Y range: 199-324bp)
  • Radian Group Inc (Country: US; rated: BBB-): down 12.8 bp to 168.5bp (1Y range: 171-385bp)
  • Gap Inc (Country: US; rated: Ba2): down 12.5 bp to 146.3bp (1Y range: 144-308bp)
  • Liberty Interactive LLC (Country: US; rated: Ba3): down 12.0 bp to 277.5bp (1Y range: 249-404bp)
  • Mattel Inc (Country: US; rated: Ba2): down 11.0 bp to 207.4bp (1Y range: 193-397bp)
  • Avis Budget Car Rental LLC (Country: US; rated: WR): up 11.7 bp to 267.2bp (1Y range: 137-2,386bp)
  • American Airlines Group Inc (Country: US; rated: B2): up 22.0 bp to 633.1bp (1Y range: 596-3,660bp)
  • Rite Aid Corp (Country: US; rated: Caa1): up 41.7 bp to 878.4bp (1Y range: 497-922bp)
  • Talen Energy Supply LLC (Country: US; rated: B2): up 648.6 bp to 2,161.8bp (1Y range: 875-3,027bp)

LARGEST EURO CORPORATE CDS MOVES IN THE PAST WEEK

  • Casino Guichard Perrachon SA (Country: FR; rated: WR): down 13.0 bp to 494.7bp (1Y range: 494-1,210bp)
  • Hammerson PLC (Country: GB; rated: Baa3): down 11.5 bp to 188.5bp (1Y range: 187-604bp)
  • Banca Monte dei Paschi di Siena SpA (Country: IT; rated: NP): down 11.2 bp to 216.8bp (1Y range: 188-272bp)
  • Monitchem Holdco 3 SA (Country: LU; rated: B2): down 9.6 bp to 239.5bp (1Y range: 240-393bp)
  • Thyssenkrupp AG (Country: DE; rated: B1): down 9.3 bp to 296.2bp (1Y range: 206-479bp)
  • Stena AB (Country: SE; rated: B2-PD): down 6.2 bp to 518.4bp (1Y range: 523-750bp)
  • Ineos Group Holdings SA (Country: LU; rated: LGD5 - 88%): down 5.2 bp to 220.9bp (1Y range: 223-447bp)
  • Louis Dreyfus Co BV (Country: NL; rated: ): down 3.7 bp to 117.0bp (1Y range: -117bp)
  • J Sainsbury PLC (Country: GB; rated: WR): up 3.6 bp to 69.7bp (1Y range: 52-82bp)
  • Air France KLM SA (Country: FR; rated: B-): up 6.7 bp to 400.5bp (1Y range: 392-1,211bp)
  • Accor SA (Country: FR; rated: B): up 7.1 bp to 143.6bp (1Y range: 136-255bp)
  • Deutsche Lufthansa AG (Country: DE; rated: Ba2): up 12.4 bp to 251.5bp (1Y range: 236-421bp)
  • Stonegate Pub Company Financing PLC (Country: GB; rated: WR): up 21.6 bp to 509.0bp (1Y range: 486-984bp)
  • Boparan Finance PLC (Country: GB; rated: B3): up 27.1 bp to 915.8bp (1Y range: 478-915bp)
  • TUI AG (Country: DE; rated: LGD4 - 50%): up 67.7 bp to 710.3bp (1Y range: 590-1,799bp)

USD BOND ISSUES

  • Apollo Investment Corp (Financial - Other | New York City, New York, United States | Rating: NR): US$125m Senior Note (US03761UAH95), fixed rate (4.50% coupon) maturing on 16 July 2026, priced at 99.87 (original spread of 375 bp), callable (5nc5)
  • Federal Farm Credit Banks Funding Corp (Agency | Jersey City, New Jersey, United States | Rating: AA+): US$200m Bond (US3133EMT446), fixed rate (2.13% coupon) maturing on 19 April 2034, priced at 100.00 (original spread of 78 bp), callable (13nc3m)
  • Federal Farm Credit Banks Funding Corp (Agency | Jersey City, New Jersey, United States | Rating: AA+): US$200m Bond (US3133EMT362), fixed rate (0.87% coupon) maturing on 15 April 2026, priced at 100.00 (original spread of 87 bp), callable (5nc3m)
  • Federal Home Loan Banks (Agency | Washington, Washington Dc, United States | Rating: NR): US$250m Bond (US3130ANAN01), fixed rate (0.58% coupon) maturing on 29 January 2025, priced at 100.00 (original spread of 51 bp), callable (4nc1)
  • Jaguar Land Rover Automotive PLC (Automotive Manufacturer | Coventry, West Midlands, India | Rating: B): US$500m Senior Note (US47010BAM63), fixed rate (5.50% coupon) maturing on 15 July 2029, priced at 100.00 (original spread of 428 bp), callable (8nc3)
  • Seaspan Corp (Transportation - Other | Canada | Rating: BB-): US$750m Senior Note (US81254UAK25), fixed rate (5.50% coupon) maturing on 1 August 2029, priced at 100.00 (original spread of 448 bp), callable (8nc3)

EUR BOND ISSUES

  • AXA Bank Europe SCF SA (Banking | Fontenay-Sous-Bois, Ile-De-France, France | Rating: AAA): €500m Obligation Fonciere (Covered Bond) (FR0014004J07), floating rate (EU03MLIB + 23.0 bp) maturing on 13 July 2028, priced at 100.00, callable (7nc1m)
  • Jaguar Land Rover Automotive PLC (Automotive Manufacturer | Coventry, West Midlands, India | Rating: B): €500m Senior Note (XS2364593579), fixed rate (4.50% coupon) maturing on 15 July 2028, priced at 100.00 (original spread of 498 bp), callable (7nc3)