Credit

iBOXX USD Liquid Bonds Monthly Returns: IG Up 1.46%, HY Up 0.19% As Duration Mattered More Than Spreads in July

Weekly corporate bond issuance (IFR data): US$ 24.9bn in 31 tranches for IG, $10.7 bn in 14 Tranches for HY

Published ET

MBIA 5Y USD CDS Spread At 12-Month Low | Source: Refinitiv

MBIA 5Y USD CDS Spread At 12-Month Low | Source: Refinitiv

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QUICK SUMMARY

  • S&P 500 Bond Index was up 0.21% today, with investment grade up 0.23% and high yield up 0.08% (YTD total return: +0.33%)
  • The iBoxx USD Liquid Investment Grade Total Return Index was up 0.16% today (Month-to-date: 1.46%; Year-to-date: -0.15%)
  • The iBoxx USD Liquid High Yield Total Return Index was up 0.005% today (Month-to-date: 0.19%; Year-to-date: 3.23%)
  • ICE BofA US Corporate Index (Investment Grade) spread to worst unchanged, now at 87.0 bp (YTD change: -11.0 bp)
  • ICE BofA US High Yield Index spread to worst up 2.0 bp, now at 338.0 bp (YTD change: -52.0 bp)
  • S&P/LSTA U.S. Leveraged Loan 100 Index unchanged today (YTD total return: +1.9%)

US CORPORATE OPTION-ADJUSTED SPREAD (OAS) BY RATING

  • AAA up by 1 bp at 49 bp
  • AA up by 1 bp at 58 bp
  • A unchanged at 72 bp
  • BBB unchanged at 112 bp
  • BB up by 1 bp at 230 bp
  • B up by 3 bp at 381 bp
  • CCC up by 6 bp at 624 bp

ICE BofAML US Corporate Spreads By Rating | Sources: phipost.com, Refinitiv data

ICE BofA US Corporate Spreads IG & HY | Sources: ϕpost, Refinitiv dataICE BofA US Corporate STW by Rating | Sources: ϕpost, Refinitiv data

CDS INDICES (mid-spreads)

  • Markit CDX.NA.IG 5Y up 0.9 bp, now at 50bp (YTD change: -0.2bp)
  • Markit CDX.NA.HY 5Y up 6.7 bp, now at 292bp (YTD change: -0.8bp)
  • Markit iTRAXX Europe up 0.5 bp, now at 47bp (YTD change: -1.3bp)
  • Markit iTRAXX Japan up 0.0 bp, now at 47bp (YTD change: -4.5bp)
  • Markit iTRAXX Asia Ex-Japan up 1.8 bp, now at 92bp (YTD change: +33.6bp)
CDX NA IG & HY Indices Mid Spreads | Sources: ϕpost, Refinitiv dataiTRAXX Credit Indices Mid Spreads | Sources: ϕpost, Refinitiv data

LARGEST USD CORPORATE CDS MOVES IN THE PAST WEEK

  • FirstEnergy Corp (Country: US; rated: Ba1): down 20.3 bp to 60.3bp (1Y range: 49-139bp)
  • iStar Inc (Country: US; rated: BBB-): down 15.6 bp to 212.3bp (1Y range: 199-324bp)
  • MBIA Inc (Country: US; rated: Ba3): down 15.3 bp to 358.3bp (1Y range: 358-757bp)
  • HCA Inc (Country: US; rated: Baa3): down 12.1 bp to 76.0bp (1Y range: 76-182bp)
  • Gap Inc (Country: US; rated: Ba2): up 11.2 bp to 160.9bp (1Y range: 144-308bp)
  • Royal Caribbean Cruises Ltd (Country: US; rated: LGD4 - 59%): up 14.0 bp to 383.5bp (1Y range: 318-1,291bp)
  • Murphy Oil Corp (Country: US; rated: Ba3): up 17.8 bp to 356.6bp (1Y range: 280-763bp)
  • MGM Resorts International (Country: US; rated: WD): up 17.8 bp to 208.7bp (1Y range: 173-441bp)
  • Carnival Corp (Country: US; rated: LGD5 - 72%): up 19.0 bp to 432.8bp (1Y range: 291-1,214bp)
  • RR Donnelley & Sons Co (Country: US; rated: B2): up 20.7 bp to 517.0bp (1Y range: 447-1,008bp)
  • Genworth Holdings Inc (Country: US; rated: Caa1): up 23.7 bp to 475.7bp (1Y range: 447-830bp)
  • Staples Inc (Country: US; rated: B2): up 59.4 bp to 905.0bp (1Y range: 652-1,965bp)
  • Transocean Inc (Country: KY; rated: Caa3): up 119.4 bp to 1,690.2bp (1Y range: 941-7,695bp)
  • Talen Energy Supply LLC (Country: US; rated: BB-): up 326.2 bp to 3,181.3bp (1Y range: 875-3,031bp)

LARGEST EURO CORPORATE CDS MOVES IN THE PAST WEEK

  • Hammerson PLC (Country: GB; rated: Baa3): down 9.3 bp to 174.0bp (1Y range: 169-604bp)
  • Ineos Group Holdings SA (Country: LU; rated: LGD5 - 88%): down 8.4 bp to 213.5bp (1Y range: 204-447bp)
  • UPC Holding BV (Country: NL; rated: LGD6 - 93%): down 8.3 bp to 225.6bp (1Y range: 211-315bp)
  • Thyssenkrupp AG (Country: DE; rated: B1): down 8.3 bp to 281.0bp (1Y range: 206-479bp)
  • Lagardere SA (Country: FR; rated: B): down 6.6 bp to 235.3bp (1Y range: 215-350bp)
  • Premier Foods Finance PLC (Country: ; rated: B1): down 6.3 bp to 204.0bp (1Y range: 141-273bp)
  • Monitchem Holdco 3 SA (Country: LU; rated: B2): down 5.7 bp to 232.1bp (1Y range: 228-393bp)
  • Ardagh Packaging Finance PLC (Country: IE; rated: B1): down 5.1 bp to 220.6bp (1Y range: 188-272bp)
  • Iceland Bondco PLC (Country: GB; rated: LGD3 - 46%): down 5.1 bp to 442.4bp (1Y range: 358-719bp)
  • Altice Finco SA (Country: LU; rated: Caa1): up 5.2 bp to 343.3bp (1Y range: 317-477bp)
  • Air France KLM SA (Country: FR; rated: B-): up 6.0 bp to 417.4bp (1Y range: 392-1,211bp)
  • Boparan Finance PLC (Country: GB; rated: WR): up 7.2 bp to 942.7bp (1Y range: 478-984bp)
  • Tui AG (Country: DE; rated: LGD4 - 50%): up 7.3 bp to 808.5bp (1Y range: 590-1,799bp)
  • Casino Guichard Perrachon SA (Country: FR; rated: WR): up 23.5 bp to 556.5bp (1Y range: 494-1,210bp)
  • Novafives SAS (Country: FR; rated: Caa1): up 35.3 bp to 845.8bp (1Y range: 716-1,205bp)

USD BOND ISSUES

  • United Rentals (North America) Inc (Service - Other | Stamford, Connecticut, United States | Rating: BB): US$750m Senior Note (US911365BP80), fixed rate (3.75% coupon) maturing on 15 January 2032, priced at 100.00 (original spread of 254 bp), callable (10nc5)
  • BNG Bank NV (Agency | S-Gravenhage, Zuid-Holland, Netherlands | Rating: AAA): US$2,000m Unsecured Note (XS2373155295), fixed rate (0.87% coupon) maturing on 18 May 2026, priced at 100.00, non callable

EUR BOND ISSUES

  • Barclays Bank PLC (Banking | London, United Kingdom | Rating: A+): €250m Unsecured Note (XS2372741137) zero coupon maturing on 14 August 2023, non callable
  • Deutsche Bank AG (Banking | Frankfurt, Hessen, Germany | Rating: BBB+): €500m Inhaberschuldverschreibung (DE000DB9U4R9), floating rate maturing on 23 August 2028, priced at 100.00, non callable
  • Peoplecert Wisdom Issuer PLC (Financial - Other | London, Cyprus | Rating: B): €300m Note (XS2370814043), fixed rate (5.75% coupon) maturing on 15 September 2026, priced at 100.00 (original spread of 647 bp), callable (5nc2)

NEW LOANS

  • Savage Cos, signed a US$ 1,000m Term Loan B, to be used for general corporate purposes.

NEW ISSUES IN SECURITIZED CREDIT

  • BPCE Demeter Tria Fct issued a floating-rate ABS backed by consumer loan in 2 tranches, for a total of € 1,181 m. Bookrunners: UniCredit
  • Greystone 2021-Fl3 issued a floating-rate RMBS in 6 tranches, for a total of US$ 747 m. Highest-rated tranche offering a spread over the floating rate of 102bp, and the lowest-rated tranche a spread of 275bp. Bookrunners: Goldman Sachs & Co, JP Morgan & Co Inc, UBS, Wells Fargo Securities LLC
  • Sonic Capital 2021-1 issued a fixed-rate ABS backed by certificates in 2 tranches, for a total of US$ 575 m. Highest-rated tranche offering a yield to maturity of 2.19%, and the lowest-rated tranche a yield to maturity of 2.64%. Bookrunners: Credit Suisse, Goldman Sachs & Co, Morgan Stanley International Ltd, JP Morgan & Co Inc, Barclays Capital Group, Wells Fargo Securities LLC, Bank of America Merrill Lynch