Credit

US Corporate Spreads Unchanged In IG, Lower Across HY

The widening in the cash spreads of domestic-focused transportation and travel-related companies looks overdone if the US experience with the delta variant is similar to the UK (short-lived with low mortality)

Published ET

Royal Caribbean Cruises July 2026 Bond (USV7780TAF04) Has Not Performed Well Recently But Could Rebound | Source: Refinitiv

Royal Caribbean Cruises July 2026 Bond (USV7780TAF04) Has Not Performed Well Recently But Could Rebound | Source: Refinitiv

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QUICK SUMMARY

  • The iBoxx USD Liquid Investment Grade Total Return Index was down -0.366% today (Month-to-date: -0.05%; Year-to-date: -0.20%)
  • The iBoxx USD Liquid High Yield Total Return Index was up 0.035% today (Month-to-date: -0.17%; Year-to-date: 3.06%)
  • ICE BofA US Corporate Index (Investment Grade) spread to worst unchanged at 89.0 bp (YTD change: -9.0 bp)
  • ICE BofA US High Yield Index spread to worst down -4.0 bp, now at 351.0 bp (YTD change: -39.0 bp)
  • S&P/LSTA U.S. Leveraged Loan 100 Index up 0.01% today (YTD total return: +1.9%)

US CORPORATE OPTION-ADJUSTED SPREAD (OAS) BY RATING

  • AAA unchanged at 51 bp
  • AA unchanged at 59 bp
  • A unchanged at 74 bp
  • BBB unchanged at 115 bp
  • BB down by -5 bp at 236 bp
  • B down by -6 bp at 395 bp
  • CCC down by -3 bp at 663 bp

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

ICE BofAML US Corporate STW IG & HY | Sources: ϕpost, Refinitiv data ICE BofAML US Corporate STW By Rating | Sources: ϕpost, Refinitiv data

CDS INDICES (mid-spreads)

  • Markit CDX.NA.IG 5Y down 0.7 bp, now at 50bp (YTD change: -0.3bp)
  • Markit CDX.NA.HY 5Y down 7.3 bp, now at 289bp (YTD change: -4.6bp)
  • Markit iTRAXX Europe down 0.4 bp, now at 46bp (YTD change: -1.7bp)
  • Markit iTRAXX Japan unchanged at 47bp (YTD change: -4.7bp)
  • Markit iTRAXX Asia Ex-Japan up 0.4 bp, now at 90bp (YTD change: +32.3bp)
CDX NA IG & HY Credit Spreads | Sources: ϕpost, Refinitiv dataiTRAXX Indices Mid Spreads | Sources: ϕpost, Refinitiv data

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: 875-2,611bp)
  • 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: 426-1,912bp)
  • Avon Products Inc (Country: GB; rated: WR): down 12.5 bp to 203.1bp (1Y range: 160-458bp)
  • 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: 596-2,968bp)
  • Genworth Holdings Inc (Country: US; rated: Caa1): up 39.2 bp to 514.8bp (1Y range: 447-805bp)
  • Staples Inc (Country: US; rated: B2): up 77.1 bp to 982.2bp (1Y range: 652-1,929bp)
  • Transocean Inc (Country: KY; rated: Caa3): up 177.9 bp to 1,868.1bp (1Y range: 941-7,695bp)

TOP BONDS MOVES IN THE PAST WEEK - USD HY

  • Issuer: NCL Corporation Ltd (Miami, Bermuda) | Coupon: 5.88% | Maturity: 15/3/2026 | Rating: CCC+ | ISIN: USG6436QAL08 | Z-spread up by 66.0 bp to 564.2 bp, with the yield to worst at 6.3% and the bond now trading down to 98.0 cents on the dollar (1Y price range: 98.0-105.3).
  • Issuer: Royal Caribbean Cruises Ltd (Miami) | Coupon: 4.25% | Maturity: 1/7/2026 | Rating: B | ISIN: USV7780TAF04 | Z-spread up by 58.5 bp to 464.2 bp (CDS basis: -34.9bp), with the yield to worst at 5.2% and the bond now trading down to 95.0 cents on the dollar (1Y price range: 94.2-100.9).
  • 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 52.9 bp to 742.2 bp, with the yield to worst at 7.6% and the bond now trading down to 100.0 cents on the dollar (1Y price range: 67.5-104.8).
  • Issuer: Wynn Las Vegas LLC (Las Vegas, Nevada (US)) | Coupon: 5.25% | Maturity: 15/5/2027 | Rating: B+ | ISIN: USU98347AL87 | Z-spread up by 44.0 bp to 390.3 bp, with the yield to worst at 4.6% and the bond now trading down to 102.3 cents on the dollar (1Y price range: 101.5-108.1).
  • Issuer: Carnival Corp (Miami, Panama) | Coupon: 5.75% | Maturity: 1/3/2027 | Rating: B | ISIN: USP2121VAL82 | Z-spread up by 36.4 bp to 494.6 bp (CDS basis: -19.2bp), with the yield to worst at 5.6% and the bond now trading down to 99.8 cents on the dollar (1Y price range: 99.1-106.5).
  • Issuer: TBC bank'i SS (Tbilisi, Georgia) | Coupon: 5.75% | Maturity: 19/6/2024 | Rating: BB- | ISIN: XS1843434363 | Z-spread up by 35.6 bp to 291.9 bp, with the yield to worst at 3.0% and the bond now trading down to 106.5 cents on the dollar (1Y price range: 104.0-110.0).
  • Issuer: Ultrapar International SA (Luxembourg, Luxembourg) | Coupon: 5.25% | Maturity: 6/10/2026 | Rating: BB+ | ISIN: USL9412AAA53 | Z-spread down by 31.4 bp to 230.3 bp, with the yield to worst at 2.9% and the bond now trading up to 110.3 cents on the dollar (1Y price range: 106.3-112.3).
  • Issuer: Dilijan Finance BV (Amsterdam, Netherlands) | Coupon: 6.50% | Maturity: 28/1/2025 | Rating: B+ | ISIN: XS2080321198 | Z-spread down by 33.2 bp to 621.1 bp, with the yield to worst at 6.3% and the bond now trading up to 99.5 cents on the dollar (1Y price range: 93.6-101.0).
  • Issuer: Periama Holdings LLC (Baytown, Texas (US)) | Coupon: 5.95% | Maturity: 19/4/2026 | Rating: BB- | ISIN: XS2224065289 | Z-spread down by 38.5 bp to 347.2 bp, with the yield to worst at 3.9% and the bond now trading up to 107.5 cents on the dollar (1Y price range: 104.1-109.3).
  • Issuer: Seazen Group Ltd (Shanghai, Cayman Islands) | Coupon: 6.00% | Maturity: 12/8/2024 | Rating: BB+ | ISIN: XS2215175634 | Z-spread down by 40.8 bp to 504.2 bp, with the yield to worst at 5.1% and the bond now trading up to 101.5 cents on the dollar (1Y price range: 100.5-105.8).
  • Issuer: ZF North America Capital Inc (Northville, Michigan (US)) | Coupon: 4.75% | Maturity: 29/4/2025 | Rating: BB+ | ISIN: USU98737AC03 | Z-spread down by 44.8 bp to 134.7 bp, with the yield to worst at 1.7% and the bond now trading up to 110.0 cents on the dollar (1Y price range: 106.3-110.1).
  • Issuer: Banistmo SA (PANAMA CITY, Panama) | Coupon: 3.65% | Maturity: 19/9/2022 | Rating: BB+ | ISIN: USP15383AC95 | Z-spread down by 47.4 bp to 179.8 bp, with the yield to worst at 1.9% and the bond now trading up to 101.9 cents on the dollar (1Y price range: 101.2-103.5).
  • Issuer: YPF SA (Buenos Aires, Argentina) | Coupon: 6.95% | Maturity: 21/7/2027 | Rating: CCC | ISIN: USP989MJBL47 | Z-spread down by 49.1 bp to 1,436.2 bp, with the yield to worst at 14.5% and the bond now trading up to 70.0 cents on the dollar (1Y price range: 56.6-72.0).

USD BOND ISSUES

  • Amgen Inc (Pharmaceuticals | Thousand Oaks, California, United States | Rating: A-): US$1,150m Senior Note (US031162DA53), fixed rate (2.80% coupon) maturing on 15 August 2041, priced at 99.70 (original spread of 105 bp), callable (20nc20)
  • Amgen Inc (Pharmaceuticals | Thousand Oaks, California, United States | Rating: A-): US$1,250m Senior Note (US031162DB37), fixed rate (1.65% coupon) maturing on 15 August 2028, priced at 99.91 (original spread of 65 bp), callable (7nc7)
  • Amgen Inc (Pharmaceuticals | Thousand Oaks, California, United States | Rating: A-): US$1,350m Senior Note (US031162DC10), fixed rate (3.00% coupon) maturing on 15 January 2052, priced at 99.39 (original spread of 115 bp), callable (30nc30)
  • Amgen Inc (Pharmaceuticals | Thousand Oaks, California, United States | Rating: A-): US$1,250m Senior Note (US031162CZ14), fixed rate (2.00% coupon) maturing on 15 January 2032, priced at 99.33 (original spread of 85 bp), callable (10nc10)
  • Commonwealth Edison Co (Utility - Other | Chicago, Illinois, United States | Rating: A): US$450m First Mortgage Bond (US202795JU55), fixed rate (2.75% coupon) maturing on 1 September 2051, priced at 99.98 (original spread of 87 bp), callable (30nc30)
  • Crocs Inc (Textiles/Apparel/Shoes | Broomfield, Colorado, United States | Rating: B+): US$350m Senior Note (USU13133AB60), fixed rate (4.13% coupon) maturing on 15 August 2031, priced at 100.00 (original spread of 291 bp), callable (10nc5)
  • Crocs Inc (Textiles/Apparel/Shoes | Broomfield, Colorado, United States | Rating: BB-): US$350m Senior Note (US227046AB51), fixed rate (4.13% coupon) maturing on 15 August 2031, priced at 100.00 (original spread of 291 bp), callable (10nc5)
  • Ford Motor Credit Company LLC (Financial - Other | Dearborn, Michigan, United States | Rating: BB+): US$1,500m Senior Note (US345397B777), fixed rate (2.70% coupon) maturing on 10 August 2026, priced at 100.00 (original spread of 198 bp), callable (5nc5)
  • Franklin Resources Inc (Financial - Other | San Mateo, California, United States | Rating: A): US$350m Senior Note (US354613AM38), fixed rate (2.95% coupon) maturing on 12 August 2051, priced at 99.37 (original spread of 110 bp), callable (30nc30)
  • Goldman Sachs Finance Corp International Ltd (Financial - Other | Saint Helier, United States | Rating: NR): US$14,000m Unsecured Note (XS2093998735), fixed rate (7.00% coupon) maturing on 9 August 2024, priced at 100.00, non callable
  • Mid-America Apartments LP (Real Estate Investment Trust | Germantown, Tennessee, United States | Rating: BBB+): US$300m Senior Note (US59523UAT43), fixed rate (1.10% coupon) maturing on 15 September 2026, priced at 99.55 (original spread of 47 bp), callable (5nc5)
  • Mid-America Apartments LP (Real Estate Investment Trust | Germantown, Tennessee, United States | Rating: BBB+): US$300m Senior Note (US59523UAU16), fixed rate (2.88% coupon) maturing on 15 September 2051, priced at 98.59 (original spread of 107 bp), callable (30nc30)
  • Southern California Edison Co (Utility - Other | Rosemead, California, United States | Rating: BBB): US$450m First & Refunding Mortgage Bond (US842400HK26), fixed rate (0.98% coupon) maturing on 1 August 2024, priced at 99.99 (original spread of 60 bp), with a make whole call
  • Tanger Properties LP (Real Estate Investment Trust | Greensboro, North Carolina, United States | Rating: BBB-): US$400m Senior Note (US875484AL13), fixed rate (2.75% coupon) maturing on 1 September 2031, priced at 98.55 (original spread of 170 bp), callable (10nc10)
  • Upwork Inc (Information/Data Technology | San Francisco, California, United States | Rating: NR): US$500m Bond (US91688FAA21), fixed rate (0.25% coupon) maturing on 15 August 2026, priced at 100.00, non callable, convertible
  • Westlake Chemical Corp (Chemicals | Houston, Texas, United States | Rating: BBB): US$300m Senior Note (US960413AX07), fixed rate (0.88% coupon) maturing on 15 August 2024, priced at 99.85 (original spread of 55 bp), callable (3nc1)
  • Westlake Chemical Corp (Chemicals | Houston, Texas, United States | Rating: BBB): US$450m Senior Note (US960413BA94), fixed rate (3.38% coupon) maturing on 15 August 2061, priced at 96.92 (original spread of 165 bp), callable (40nc40)
  • Westlake Chemical Corp (Chemicals | Houston, Texas, United States | Rating: BBB): US$350m Senior Note (US960413AY89), fixed rate (2.88% coupon) maturing on 15 August 2041, priced at 97.97 (original spread of 125 bp), callable (20nc20)
  • Aeropuerto Internacional de Tocumen SA (Transportation - Other | Panama City, Panama | Rating: NR): US$1,300m Note (US00787CAE21), fixed rate (5.13% coupon) maturing on 11 August 2061, priced at 100.00, 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
  • Gemdale Ever Prosperity Investment Ltd (Financial - Other | China (Mainland) | Rating: NR): US$480m Senior Note (XS2357443410), fixed rate (4.95% coupon) maturing on 12 August 2024, priced at 99.86, non callable
  • Zhejiang Baron (BVI) Company Ltd (Financial - Other | Tortola, China (Mainland) | Rating: NR): US$200m Senior Note (XS2357111090), fixed rate (2.25% coupon) maturing on 12 August 2024, priced at 100.00, non callable

EUR BOND ISSUES

  • Volkswagen Financial Services AG (Financial - Other | Braunschweig, Niedersachsen, Germany | Rating: BBB+): €1,000m Senior Note (XS2374595044), fixed rate (0.13% coupon) maturing on 12 February 2027, priced at 99.62 (original spread of 98 bp), non callable
  • Volkswagen Financial Services AG (Financial - Other | Braunschweig, Niedersachsen, Germany | Rating: BBB+): €750m Senior Note (XS2374594823), fixed rate (0.38% coupon) maturing on 12 February 2030, priced at 99.05 (original spread of 113 bp), non callable
  • Volkswagen Financial Services AG (Financial - Other | Braunschweig, Niedersachsen, Germany | Rating: BBB+): €750m Senior Note (XS2374595127) zero coupon maturing on 12 February 2025, priced at 100.09 (original spread of 80 bp), non callable
  • WMG Acquisition Corp (Electronics | New York City, New York, United States | Rating: NR): €445m Note (XS2367081523), fixed rate (2.25% coupon) maturing on 15 August 2031, priced at 100.00 (original spread of 275 bp), callable (10nc5)

NEW LOANS

  • Berlin Packaging LLC (B), signed a US$ 1,070m Term Loan B, to be used for general corporate purposes. It matures on 03/11/28 and initial pricing is set at LIBOR +375bps
  • Lumos Networks Corp, signed a US$ 360m Term Loan B and a US$ 110m Term Loan, to be used for recapitalization.

NEW ISSUES IN SECURITIZED CREDIT

  • Ready Capital Mortgage Financing 2021-Fl6 LLC issued a floating-rate CMBS in 6 tranches, for a total of US$ 543 m. Highest-rated tranche offering a spread over the floating rate of 95bp, and the lowest-rated tranche a spread of 290bp. Bookrunners: Credit Suisse, JP Morgan & Co Inc, Deutsche Bank Securities Inc