Credit

US High-Yield Corporate Bond Prices Drop, With Single-Bs Cash Spreads Up 31bp, CCCs Up 32pb Today

Investment grade bonds did well, as their credit spreads widened only slightly and their relatively long duration played well on much lower rates

Published ET

ICE BofA US Corporate OAS for Single-Bs and CCCs | Sources: ϕpost, Refinitiv data

ICE BofA US Corporate OAS for Single-Bs and CCCs | Sources: ϕpost, Refinitiv data

Twitter iconFacebook iconLinkedIn iconemail iconWhatsApp icon

ICE BofAML US Corporate Spreads by rating | Sources: phipost.com, Refinitiv data

US Corporate IG Spreads & HY Spreads | Sources: ϕpost, Refinitiv dataUS Corporate Bond Spreads By Rating | Sources: ϕpost, Refinitiv data

CDS INDICES (mid-spreads)

  • Markit CDX.NA.IG 5Y up 2.0 bp, now at 52bp (YTD change: +2.0bp)
  • Markit CDX.NA.HY 5Y up 10.9 bp, now at 298bp (YTD change: +4.3bp)
  • Markit iTRAXX Europe up 1.6 bp, now at 49bp (YTD change: +1.3bp)
  • Markit iTRAXX Japan up 0.1 bp, now at 45bp (YTD change: -6.2bp)
  • Markit iTRAXX Asia Ex-Japan up 0.9 bp, now at 85bp (YTD change: +27.2bp)
CDX.NA.IG & CDX.NA.HY Indices Mid Spreads | Sources: ϕpost, Refinitiv dataiTRAXX Indices Mid Spreads | Sources: ϕpost, Refinitiv data

TOP BONDS MOVES IN THE PAST WEEK - USD HY

  • Issuer: Turkcell Iletisim Hizmetleri AS (Istanbul, Turkey) | Coupon: 9.00% | Maturity: 22/10/2025 | Rating: B- | ISIN: XS1298711729 | Z-spread up by 65.5 bp to 713.0 bp, with the yield to worst at 7.4% and the bond now trading down to 104.6 cents on the dollar (1Y price range: 104.0-109.9).
  • Issuer: Merlin Entertainments Ltd (Poole, United Kingdom) | Coupon: 4.25% | Maturity: 1/7/2026 | Rating: B | ISIN: USG6019WSS81 | Z-spread up by 48.6 bp to 403.6 bp (CDS basis: -41.3bp), with the yield to worst at 4.6% and the bond now trading down to 97.3 cents on the dollar (1Y price range: 96.3-100.9).
  • Issuer: Wynn Las Vegas LLC (Las Vegas, Nevada (US)) | Coupon: 3.75% | Maturity: 1/3/2025 | Rating: CCC | ISIN: USU98347AK05 | Z-spread up by 43.7 bp to 639.7 bp (CDS basis: -17.7bp), with the yield to worst at 6.8% and the bond now trading down to 90.0 cents on the dollar (1Y price range: 71.0-93.1).
  • Issuer: Turkiye Sise ve Cam Fabrikalari AS (Istanbul, Turkey) | Coupon: 5.88% | Maturity: 15/3/2026 | Rating: CCC+ | ISIN: XS1961010987 | Z-spread up by 41.9 bp to 451.0 bp, with the yield to worst at 5.2% and the bond now trading down to 102.3 cents on the dollar (1Y price range: 98.5-105.3).
  • Issuer: Wanda Properties Overseas Ltd (British Virgin Islands) | Coupon: 6.00% | Maturity: 26/7/2023 | Rating: BB- | ISIN: XS2100658066 | Z-spread up by 41.4 bp to 282.4 bp, with the yield to worst at 3.0% and the bond now trading down to 105.6 cents on the dollar (1Y price range: 104.5-106.5).
  • Issuer: Compass Minerals International Inc (Overland Park, Kansas (US)) | Coupon: 4.25% | Maturity: 15/7/2024 | Rating: BB | ISIN: USU2036YAC04 | Z-spread up by 37.7 bp to 197.1 bp, with the yield to worst at 2.1% and the bond now trading down to 104.8 cents on the dollar (1Y price range: 104.8-106.9).
  • Issuer: Graphic Packaging International LLC (Atlanta, Georgia (US)) | Coupon: 6.13% | Maturity: 15/3/2028 | Rating: CCC+ | ISIN: USU41441AB92 | Z-spread up by 33.8 bp to 456.2 bp, with the yield to worst at 5.4% and the bond now trading down to 103.0 cents on the dollar (1Y price range: 101.8-105.9).
  • Issuer: Kuwait Projects Company SPC Ltd (Dubai, United Arab Emirates) | Coupon: 5.75% | Maturity: 1/3/2027 | Rating: B | ISIN: XS1567906059 | Z-spread up by 31.2 bp to 422.3 bp (CDS basis: -37.8bp), with the yield to worst at 4.9% and the bond now trading down to 102.9 cents on the dollar (1Y price range: 99.1-106.5).
  • Issuer: NOVA Chemicals Corp (Calgary, Canada) | Coupon: 7.88% | Maturity: 1/5/2025 | Rating: CC | ISIN: USC67111AG65 | Z-spread up by 29.7 bp to 642.0 bp, with the yield to worst at 6.7% and the bond now trading down to 103.0 cents on the dollar (1Y price range: 67.5-104.8).
  • Issuer: YPF SA (Buenos Aires, Argentina) | Coupon: 4.25% | Maturity: 31/7/2027 | Rating: BB+ | ISIN: USP989MJBL47 | Z-spread up by 28.7 bp to 265.0 bp, with the yield to worst at 3.5% and the bond now trading down to 103.4 cents on the dollar (1Y price range: 103.4-107.6).
  • Issuer: Metropolitan Edison Co (Akron, Ohio (US)) | Coupon: 4.15% | Maturity: 15/4/2025 | Rating: BB+ | ISIN: USU5919UAE92 | Z-spread down by 30.5 bp to 115.1 bp (CDS basis: -54.9bp), with the yield to worst at 1.7% and the bond now trading up to 108.0 cents on the dollar (1Y price range: 106.4-109.8).
  • Issuer: GTLK Europe DAC (DUBLIN, Ireland) | Coupon: 6.25% | Maturity: 8/6/2024 | Rating: B+ | ISIN: XS1577961516 | Z-spread down by 39.9 bp to 487.4 bp, with the yield to worst at 4.9% and the bond now trading up to 102.5 cents on the dollar (1Y price range: 101.0-102.9).
  • Issuer: Turk Telekomunikasyon AS (Ankara, Turkey) | Coupon: 5.75% | Maturity: 19/6/2024 | Rating: BB- | ISIN: XS1028951264 | Z-spread down by 54.7 bp to 208.2 bp, with the yield to worst at 2.2% and the bond now trading up to 108.9 cents on the dollar (1Y price range: 104.0-110.0).
  • Issuer: American Airlines Group Inc (Fort Worth, Texas (US)) | Coupon: 8.95% | Maturity: 11/3/2025 | Rating: B- | ISIN: USU0242AAD47 | Z-spread down by 58.4 bp to 909.8 bp, with the yield to worst at 9.4% and the bond now trading up to 97.6 cents on the dollar (1Y price range: 94.3-99.8).
  • Issuer: ZF North America Capital Inc (Northville, Michigan (US)) | Coupon: 4.56% | Maturity: 30/4/2025 | Rating: B+ | ISIN: USU98737AC03 | Z-spread down by 83.9 bp to 2,212.7 bp, with the yield to worst at 22.2% and the bond now trading up to 55.4 cents on the dollar (1Y price range: 53.5-92.1).

TOP BONDS MOVES IN THE PAST WEEK - EUR HY

  • Issuer: Deutsche Lufthansa AG (Cologne, Germany) | Coupon: 3.00% | Maturity: 29/5/2026 | Rating: BB- | ISIN: XS2265369657 | Z-spread up by 27.3 bp to 354.2 bp (CDS basis: -88.2bp), with the yield to worst at 3.1% and the bond now trading down to 99.1 cents on the dollar (1Y price range: 95.7-102.3).
  • Issuer: International Consolidated Airlines Group SA (London, Spain) | Coupon: 3.75% | Maturity: 25/3/2029 | Rating: B+ | ISIN: XS2322423539 | Z-spread up by 25.2 bp to 408.2 bp, with the yield to worst at 3.7% and the bond now trading down to 99.0 cents on the dollar (1Y price range: 97.5-102.0).
  • Issuer: Adler Group SA (Senningerberg, Luxembourg) | Coupon: 2.25% | Maturity: 27/4/2027 | Rating: BB+ | ISIN: XS2336188029 | Z-spread up by 17.8 bp to 307.3 bp, with the yield to worst at 2.6% and the bond now trading down to 97.2 cents on the dollar (1Y price range: 94.4-100.2).
  • Issuer: Rolls-Royce PLC (Birmingham, United Kingdom) | Coupon: 1.63% | Maturity: 9/5/2028 | Rating: BB- | ISIN: XS1819574929 | Z-spread up by 17.1 bp to 307.5 bp (CDS basis: -30.0bp), with the yield to worst at 2.7% and the bond now trading down to 92.6 cents on the dollar (1Y price range: 90.4-94.1).
  • Issuer: Teva Pharmaceutical Finance Netherlands II BV (Amsterdam, Netherlands) | Coupon: 1.88% | Maturity: 31/3/2027 | Rating: BB- | ISIN: XS1211044075 | Z-spread up by 16.4 bp to 380.9 bp, with the yield to worst at 3.4% and the bond now trading down to 91.7 cents on the dollar (1Y price range: 90.5-95.4).
  • Issuer: SoftBank Group Corp (Minato-Ku, Japan) | Coupon: 3.38% | Maturity: 6/7/2029 | Rating: BB+ | ISIN: XS2361255057 | Z-spread up by 14.5 bp to 384.7 bp, with the yield to worst at 3.6% and the bond now trading down to 98.2 cents on the dollar (1Y price range: 97.9-99.9).
  • Issuer: Petroleos Mexicanos (Miguel Hidalgo, Mexico) | Coupon: 4.88% | Maturity: 21/2/2028 | Rating: BB- | ISIN: XS1568888777 | Z-spread up by 12.5 bp to 510.4 bp (CDS basis: -94.1bp), with the yield to worst at 4.7% and the bond now trading down to 100.1 cents on the dollar (1Y price range: 97.7-103.3).
  • Issuer: Saipem Finance International BV (Amsterdam, Netherlands) | Coupon: 3.38% | Maturity: 15/7/2026 | Rating: BB | ISIN: XS2202907510 | Z-spread down by 11.7 bp to 308.8 bp (CDS basis: 27.0bp), with the yield to worst at 2.6% and the bond now trading up to 102.7 cents on the dollar (1Y price range: 101.4-106.3).
  • Issuer: CBOM Finance PLC (Dublin, Ireland) | Coupon: 3.10% | Maturity: 21/1/2026 | Rating: BB- | ISIN: XS2281299763 | Z-spread down by 14.3 bp to 373.5 bp, with the yield to worst at 3.2% and the bond now trading up to 98.8 cents on the dollar (1Y price range: 96.0-100.0).

USD BOND ISSUES

  • International Bank for Reconstruction and Development (Supranational | Washington, Washington Dc, United States | Rating: AAA): US$185m Unsecured Note (XS2368221680) zero coupon maturing on 29 December 2023, non callable
  • Anton Oilfield Services Group (Oilfield Machinery and Services | Beijing, China (Mainland) | Rating: NR): US$150m Senior Note (XS2364121645), fixed rate (8.75% coupon) maturing on 26 January 2025, priced at 98.53, callable (4nc3)
  • Eskom Holdings Soc Ltd (Agency | Johannesburg, South Africa | Rating: BB): US$500m Senior Note (XS2010027709), fixed rate (4.31% coupon) maturing on 23 July 2027, priced at 100.00 (original spread of 356 bp), non callable
  • Horse Gallop Finance Ltd (Financial - Other | Road Town, British Virgin Islands | Rating: NR): US$600m Senior Note (XS2365265003), fixed rate (1.10% coupon) maturing on 26 July 2024, priced at 99.96 (original spread of 75 bp), non callable
  • Interchile SA (Utility - Other | Santiago | Rating: NR): US$1,200m Note (US45846AAA88), fixed rate (4.50% coupon) maturing on 30 June 2056, priced at 100.00 (original spread of 311 bp), non callable

EUR BOND ISSUES

  • Amundi Real Assets Company SA (Financial - Other | Luxembourg | Rating: NR): €500m Bond (XS2358919053), floating rate maturing on 20 July 2028, priced at 100.00, non callable
  • Lar Espana Real Estate SOCIMI SA (Retail Stores - Other | Madrid, Spain | Rating: NR): €400m Senior Note (XS2363989273), fixed rate (1.75% coupon) maturing on 22 July 2026, priced at 100.00, callable (5nc5)

NEW LOANS

  • Monoprix SA, signed a € 105m Term Loan, to be used for general corporate purposes and maturing on 01/19/26
  • Casino Guichard-Perrachon SA (B), signed a € 1,800m Revolving Credit Facility, to be used for general corporate purposes and maturing on 07/22/26.
  • S4 Capital PLC, signed a € 375m Term Loan B, to be used for general corporate purposes. It matures on 07/29/28 and initial pricing is set at EURIBOR +400 bp

Leveraged Loans Index | Sources: phipost.com, Refinitiv data

NEW ISSUES IN SECURITIZED CREDIT

  • Soho 2021-Soho issued a fixed-rate CMBS in 5 tranches, for a total of US$ 303 m. Bookrunners: Goldman Sachs & Co, Deutsche Bank Securities Inc, BMO Capital Markets
  • NBC Funding LLC Series 2021-1 issued a fixed-rate ABS backed by business cashflow in 2 tranches, for a total of US$ 335 m. Highest-rated tranche offering a yield to maturity of 2.99%, and the lowest-rated tranche a yield to maturity of 4.97%. Bookrunners: Barclays Capital Group
  • Mission Lane Credit Card Master Trust 2021-A issued a fixed-rate ABS backed by receivables in 3 tranches, for a total of US$ 320 m. Highest-rated tranche offering a yield to maturity of 1.59%, and the lowest-rated tranche a yield to maturity of 4.75%. Bookrunners: Goldman Sachs & Co, Guggenheim Securities LLC
  • Wells Fargo Commercial Mortgage Trust 2021-C60 issued a fixed-rate CMBS in 9 tranches, for a total of US$ 672 m. Highest-rated tranche offering a yield to maturity of 0.73%, and the lowest-rated tranche a yield to maturity of 2.74%. Bookrunners: Credit Suisse, UBS Securities Inc, Wells Fargo Securities LLC
  • Trafigura Securitisation Finance Plc 2021-1 issued a floating-rate ABS backed by receivables in 3 tranches, for a total of US$ 300 m. Bookrunners: Citigroup Global Markets Inc, SG Americas Securities LLC, SMBC Nikko Securities America Inc

Palmer Square CLO Indices | Sources: phipost.com, Refinitiv data