QUICK SUMMARY

• S&P 500 Bond Index was down -0.04% today, with investment grade down -0.03% and high yield down -0.14% (YTD total return: +0.61%)
• The iBoxx USD Liquid Investment Grade Total Return Index was down -0.048% today (Month-to-date: 0.28%; Year-to-date: 0.13%)
• The iBoxx USD Liquid High Yield Total Return Index was down -0.15% today (Month-to-date: -0.12%; Year-to-date: 3.11%)
• ICE BofA US Corporate Index (Investment Grade) spread to worst unchanged at 88.0 bp (YTD change: -10.0 bp)
• ICE BofA US High Yield Index spread to worst up 6.0 bp, now at 354.0 bp (YTD change: -36.0 bp)
• S&P/LSTA U.S. Leveraged Loan 100 Index down -0.02% today (YTD total return: +1.9%)

US CORPORATE OPTION-ADJUSTED SPREAD (OAS) BY RATING

• AAA up by 1 bp at 51 bp
• AA unchanged at 59 bp
• A unchanged at 74 bp
• BBB up by 1 bp at 115 bp
• BB up by 4 bp at 242 bp
• B up by 6 bp at 398 bp
• CCC up by 9 bp at 659 bp

CDS INDICES (mid-spreads)

• Markit CDX.NA.IG 5Y down 0.2 bp, now at 50bp (YTD change: -0.3bp)
• Markit CDX.NA.HY 5Y down 1.4 bp, now at 293bp (YTD change: -0.3bp)
• Markit iTRAXX Europe up 0.2 bp, now at 47bp (YTD change: -1.3bp)
• Markit iTRAXX Japan down 0.1 bp, now at 47bp (YTD change: -4.7bp)
• Markit iTRAXX Asia Ex-Japan down 0.4 bp, now at 91bp (YTD change: +32.5bp)

LARGEST USD CORPORATE CDS MOVES IN THE PAST WEEK

• Talen Energy Supply LLC (Country: US; rated: BB-): down 149.8 bp to 3,031.5bp (1Y range: 875-2,714bp)
• Avis Budget Group Inc (Country: US; rated: CCC): down 26.6 bp to 267.9bp (1Y range: 236-665bp)
• Domtar Corp (Country: US; rated: Baa3): down 17.4 bp to 237.2bp (1Y range: 64-262bp)
• Murphy Oil Corp (Country: US; rated: Ba3): down 16.4 bp to 340.2bp (1Y range: 280-763bp)
• DISH DBS Corp (Country: US; rated: B2): down 14.8 bp to 329.8bp (1Y range: 323-545bp)
• Petroleos Mexicanos (Country: MX; rated: Ba3): down 14.8 bp to 388.8bp (1Y range: 364-589bp)
• Bombardier Inc (Country: CA; rated: Caa2): down 13.0 bp to 436.5bp (1Y range: 436-1,912bp)
• Avon Products Inc (Country: GB; rated: WR): down 12.5 bp to 203.1bp (1Y range: 160-463bp)
• Realogy Group LLC (Country: US; rated: B3): down 11.8 bp to 300.1bp (1Y range: 294-538bp)
• Carnival Corp (Country: US; rated: LGD5 - 72%): up 28.4 bp to 461.2bp (1Y range: 291-1,214bp)
• American Airlines Group Inc (Country: US; rated: B2): up 29.2 bp to 725.4bp (1Y range: 596-3,280bp)
• Genworth Holdings Inc (Country: US; rated: Caa1): up 39.2 bp to 514.8bp (1Y range: 447-830bp)
• Staples Inc (Country: US; rated: B2): up 77.1 bp to 982.2bp (1Y range: 652-1,965bp)
• Transocean Inc (Country: KY; rated: Caa3): up 177.9 bp to 1,868.1bp (1Y range: 941-7,695bp)

LARGEST EURO CORPORATE CDS MOVES IN THE PAST WEEK

• TUI AG (Country: DE; rated: LGD4 - 50%): down 63.2 bp to 745.3bp (1Y range: 590-1,799bp)
• Banca Monte dei Paschi di Siena SpA (Country: IT; rated: NP): down 29.0 bp to 195.0bp (1Y range: 188-272bp)
• Premier Foods Finance PLC (Country: ; rated: B1): down 20.1 bp to 183.9bp (1Y range: 141-273bp)
• Lagardere SA (Country: FR; rated: B): down 20.0 bp to 215.3bp (1Y range: 213-350bp)
• Thyssenkrupp AG (Country: DE; rated: B1): down 15.9 bp to 265.1bp (1Y range: 206-479bp)
• Deutsche Lufthansa AG (Country: DE; rated: Ba2): down 12.6 bp to 262.4bp (1Y range: 236-421bp)
• Ineos Group Holdings SA (Country: LU; rated: LGD5 - 88%): down 9.6 bp to 203.9bp (1Y range: 199-447bp)
• ArcelorMittal SA (Country: LU; rated: Ba1): down 6.8 bp to 120.0bp (1Y range: 119-248bp)
• Cable & Wireless Ltd (Country: GB; rated: WR): down 6.6 bp to 79.5bp (1Y range: 74-143bp)
• UPC Holding BV (Country: NL; rated: LGD6 - 93%): down 6.6 bp to 219.0bp (1Y range: 211-315bp)
• Louis Dreyfus Co BV (Country: NL; rated: ): down 5.9 bp to 108.9bp (1Y range: -104bp)
• Glencore International AG (Country: CH; rated: WR): down 5.9 bp to 110.1bp (1Y range: 104-194bp)
• Altice Finco SA (Country: LU; rated: Caa1): up 5.8 bp to 349.2bp (1Y range: 317-477bp)
• Novafives SAS (Country: FR; rated: Caa1): up 31.3 bp to 877.1bp (1Y range: 716-1,205bp)
• Boparan Finance PLC (Country: GB; rated: WR): up 41.7 bp to 984.4bp (1Y range: 478-994bp)

USD BOND ISSUES

• Ashland LLC (Chemicals | Covington, Kentucky, United States | Rating: BB+): US$450m Senior Note (US04433LAA08), fixed rate (3.38% coupon) maturing on 1 September 2031, priced at 100.00 (original spread of 220 bp), callable (10nc10)
• Century Communities Inc (Building Products | Greenwood Village, Colorado, United States | Rating: BB-): US$500m Senior Note (US156504AM47), fixed rate (3.88% coupon) maturing on 15 August 2029, priced at 100.00, callable (8nc7)
• ERP Operating LP (Real Estate Investment Trust | Chicago, Illinois, United States | Rating: A-): US$500m Unsecured Note (US26884ABN28), fixed rate (1.85% coupon) maturing on 1 August 2031, priced at 99.49 (original spread of 73 bp), callable (10nc10)
• Federal Farm Credit Banks Funding Corp (Agency | Jersey City, New Jersey, United States | Rating: AA+): US$200m Bond (US3133EMZ542), floating rate (SOFR + 2.5 bp) maturing on 10 August 2023, priced at 100.00, non callable
• Federal Farm Credit Banks Funding Corp (Agency | Jersey City, New Jersey, United States | Rating: AA+): US$215m Bond (US3133EMZ708), fixed rate (0.48% coupon) maturing on 10 February 2025, priced at 100.00 (original spread of 42 bp), callable (4nc3m)
• Invitation Homes Operating Partnership LP (Financial - Other | Dallas, Texas, United States | Rating: BBB-): US$650m Senior Note (US46188BAA08), fixed rate (2.00% coupon) maturing on 15 August 2031, priced at 98.40 (original spread of 100 bp), callable (10nc10)
• JPMorgan Chase & Co (Banking | New York City, New York, United States | Rating: A-): US$1,250m Senior Note (US46647PCM68), floating rate maturing on 9 August 2025, priced at 100.00 (original spread of 32 bp), callable (4nc3)
• MDC Holdings Inc (Home Builders | Denver, Colorado, United States | Rating: BB+): US$350m Senior Note (US552676AV06), fixed rate (3.97% coupon) maturing on 6 August 2061, priced at 100.00 (original spread of 210 bp), callable (40nc40)
• MSCI Inc (Financial - Other | New York City, New York, United States | Rating: BB+): US$700m Senior Note (US55354GAQ38), fixed rate (3.25% coupon) maturing on 15 August 2033, priced at 100.00 (original spread of 208 bp), callable (12nc6)
• PACCAR Financial Corp (Financial - Other | Bellevue, Washington, United States | Rating: A+): US$300m Senior Note (US69371RR407), fixed rate (0.50% coupon) maturing on 9 August 2024, priced at 99.95 (original spread of 20 bp), non callable
• Rockwell Automation Inc (Conglomerate/Diversified Mfg | Milwaukee, Wisconsin, United States | Rating: A): US$450m Senior Note (US773903AL39), fixed rate (1.75% coupon) maturing on 15 August 2031, priced at 99.78 (original spread of 60 bp), callable (10nc10)
• Rockwell Automation Inc (Conglomerate/Diversified Mfg | Milwaukee, Wisconsin, United States | Rating: A): US$450m Senior Note (US773903AM12), fixed rate (2.80% coupon) maturing on 15 August 2061, priced at 99.76 (original spread of 95 bp), callable (40nc40)
• Rockwell Automation Inc (Conglomerate/Diversified Mfg | Milwaukee, Wisconsin, United States | Rating: A): US$600m Senior Note (US773903AK55), fixed rate (0.35% coupon) maturing on 15 August 2023, priced at 99.95 (original spread of 20 bp), callable (2nc1)
• Altice Financing SA (Financial - Other | Luxembourg, Luxembourg | Rating: B): US$1,925m Note (US02154CAH60), fixed rate (5.75% coupon) maturing on 15 August 2029, priced at 100.00 (original spread of 472 bp), callable (8nc3)
• Ashtead Capital Inc (Leasing | Fort Mill, South Carolina, United Kingdom | Rating: NR): US$750m Senior Note (US045054AP84), fixed rate (2.45% coupon) maturing on 12 August 2031, priced at 99.75 (original spread of 130 bp), callable (10nc10)
• Ashtead Capital Inc (Leasing | Fort Mill, South Carolina, United Kingdom | Rating: NR): US$550m Senior Note (USU04503AH81), fixed rate (1.50% coupon) maturing on 12 August 2026, priced at 99.74 (original spread of 90 bp), callable (5nc5)
• Bank of China Ltd (Hong Kong Branch) (Banking | China (Mainland) | Rating: A+): US$500m Senior Note (XS2369293886), floating rate (SOFR + 48.0 bp) maturing on 10 August 2024, priced at 100.00, non callable
• Bng Bank NV (Agency | S-Gravenhage, Zuid-Holland, Netherlands | Rating: AAA): US$500m Unsecured Note (XS2373155295), floating rate maturing on 5 August 2026, priced at 103.93 (original spread of 3 bp), non callable
• Deutsche Bank Luxembourg SA (Banking | Luxembourg, Germany | Rating: BBB+): US$667m Unsecured Note (XS2374420839) zero coupon maturing on 2 December 2026, priced at 100.00, non callable
• GFL Environmental Inc (Service - Other | Vaughan, Ontario, Canada | Rating: B-): US$550m Senior Note (US36168QAP90), fixed rate (4.38% coupon) maturing on 15 August 2029, priced at 100.00 (original spread of 334 bp), callable (8nc3)
• National Bank of Canada (Banking | Montreal, Quebec, Canada | Rating: A-): US$500m Senior Note (US63307A2P94), fixed rate (0.75% coupon) maturing on 6 August 2024, priced at 99.95 (original spread of 45 bp), non callable
• National Bank of Canada (Banking | Montreal, Quebec, Canada | Rating: A-): US$300m Senior Note (US63307A2Q77), floating rate (SOFR + 49.0 bp) maturing on 6 August 2024, priced at 100.00, non callable
• UBS AG (Banking | Zurich, Zuerich, Switzerland | Rating: A+): US$2,000m Senior Note (USH42097CM73), fixed rate (1.49% coupon) maturing on 10 August 2027, priced at 100.00 (original spread of 85 bp), callable (6nc5)
• UBS AG (Banking | Zurich, Zuerich, Switzerland | Rating: A-): US$2,000m Senior Note (US902613AH15), fixed rate (1.49% coupon) maturing on 10 August 2027, priced at 100.00 (original spread of 85 bp), callable (6nc5)
• UBS AG (London Branch) (Banking | London, Switzerland | Rating: A+): US$1,000m Senior Note (US902674YL82), floating rate (SOFR + 45.0 bp) maturing on 9 August 2024, non callable
• UBS AG (London Branch) (Banking | London, Switzerland | Rating: A+): US$1,000m Senior Note (US902674YK00), fixed rate (0.70% coupon) maturing on 9 August 2024, priced at 99.60 (original spread of 40 bp), non callable
• Value Success International Ltd (Financial - Other | Tortola, China (Mainland) | Rating: NR): US$500m Unsecured Note (XS2372974746), fixed rate (2.50% coupon) maturing on 10 August 2026, priced at 100.00, non callable
• Value Success International Ltd (Financial - Other | Tortola, China (Mainland) | Rating: BBB): US$550m Senior Note (XS2372975040), fixed rate (2.85% coupon) maturing on 12 August 2031, priced at 99.92 (original spread of 186 bp), non callable

EUR BOND ISSUES

• Altice Financing SA (Financial - Other | Luxembourg, Luxembourg | Rating: NR): €700m Note (XS2373430854), fixed rate (4.25% coupon) maturing on 15 August 2029, priced at 100.00 (original spread of 488 bp), callable (8nc3)
• Barclays Bank PLC (Banking | London, United Kingdom | Rating: A+): €250m Senior Note (XS2372741137) zero coupon maturing on 14 August 2023, priced at 100.00, callable (2nc1m)

NEW LOANS

• Herschend Family Ent Corp, signed a US$ 475m Term Loan B, to be used for general corporate purposes.
• Ecopetrol SA (BB+), signed a US$ 1,200m Delayed Draw Term Loan, to be used for general corporate purposes. It matures on 08/03/24 and initial pricing is set at LIBOR +125bps
• Unified Women's Healthcare LLC (B-), signed a US$ 130m Term Loan B, to be used for acquisition financing. It matures on 12/18/27 and initial pricing is set at LIBOR +425bps
• Ancestry.com, signed a US$ 350m Term Loan B, maturing on 12/04/27. Initial pricing is set at LIBOR +325bps

NEW ISSUES IN SECURITIZED CREDIT

• U.S. Auto Funding Trust 2021-1 issued a fixed-rate ABS backed by auto receivables in 5 tranches, for a total of US$ 331 m. Highest-rated tranche offering a yield to maturity of 0.79%, and the lowest-rated tranche a yield to maturity of 6.23%. Bookrunners: Credit Suisse
• ZH Trust 2021-1 issued a fixed-rate RMBS in 2 tranches, for a total of US$ 450 m. Highest-rated tranche offering a yield to maturity of 2.25%, and the lowest-rated tranche a yield to maturity of 3.26%. Bookrunners: Credit Suisse, Goldman Sachs & Co, Citigroup Global Markets Inc
• Textainer Marine Containers Vii Ltd Series 2021-3 issued a fixed-rate ABS backed by certificates in 2 tranches, for a total of US$ 599 m. Highest-rated tranche offering a yield to maturity of 1.94%, and the lowest-rated tranche a yield to maturity of 2.43%. Bookrunners: PNC Capital Markets, RBC Capital Markets, Wells Fargo Securities LLC, Bank of America Merrill Lynch