Credit

Spreads Tighten Across The Credit Complex On Friday

Weekly totals for new USD bond issuance (IFR data): US$ 9.07bn in 19 Tranches for IG, $ 4.32bn in 6 Tranches for HY

Published ET

American Airlines 5Y USD CDS Spreads Widened Again This Week | Source: Refinitiv

American Airlines 5Y USD CDS Spreads Widened Again This Week | Source: Refinitiv

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QUICK SUMMARY

  • The iBoxx USD Liquid Investment Grade Total Return Index was up 0.055% today (Month-to-date: -0.45%; Year-to-date: -0.60%)
  • The iBoxx USD Liquid High Yield Total Return Index was up 0.090% today (Month-to-date: -0.34%; Year-to-date: 2.88%)
  • ICE BofA US Corporate Index (Investment Grade) spread to worst unchanged at 91.0 bp (YTD change: -7.0 bp)
  • ICE BofA US High Yield Index spread to worst down -6.0 bp, now at 350.0 bp (YTD change: -40.0 bp)
  • S&P/LSTA U.S. Leveraged Loan 100 Index down -0.01% today (YTD total return: +2.1%)

US CORPORATE OPTION-ADJUSTED SPREAD (OAS) BY RATING

  • AAA down by -1 bp at 53 bp
  • AA up by 1 bp at 62 bp
  • A down by -1 bp at 75 bp
  • BBB unchanged at 117 bp
  • BB down by -4 bp at 235 bp
  • B down by -8 bp at 394 bp
  • CCC down by -2 bp at 666 bp

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

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

CDS INDICES (mid-spreads)

  • Markit CDX.NA.IG 5Y down 0.8 bp, now at 50bp (YTD change: -0.4bp)
  • Markit CDX.NA.HY 5Y down 5.0 bp, now at 292bp (YTD change: -1.0bp)
  • Markit iTRAXX Europe down 0.2 bp, now at 47bp (YTD change: -0.9bp)
  • Markit iTRAXX Japan up 0.3 bp, now at 46bp (YTD change: -5.3bp)
  • Markit iTRAXX Asia Ex-Japan up 0.1 bp, now at 74bp (YTD change: +15.6bp)
CDX NA IG & HY Mid Spreads| Sources: ϕpost, Refinitiv dataiTRAXX Indices Mid Spreads| Sources: ϕpost, Refinitiv data

LARGEST USD CORPORATE CDS MOVES IN THE PAST WEEK

  • Macy's Inc (Country: US; rated: WD): down 52.1 bp to 277.7bp (1Y range: 224-1,253bp)
  • Bombardier Inc (Country: CA; rated: Caa1): down 38.3 bp to 387.9bp (1Y range: 395-1,912bp)
  • Apache Corp (Country: US; rated: WD): down 21.6 bp to 216.8bp (1Y range: 168-453bp)
  • NOVA Chemicals Corp (Country: CA; rated: Discontinued): down 20.0 bp to 238.7bp (1Y range: 243-394bp)
  • NRG Energy Inc (Country: US; rated: Ba1): down 19.5 bp to 144.5bp (1Y range: 108-219bp)
  • Carnival Corp (Country: US; rated: LGD5 - 72%): down 17.6 bp to 416.9bp (1Y range: 291-1,214bp)
  • Beazer Homes USA Inc (Country: US; rated: B2): down 16.2 bp to 333.7bp (1Y range: 231-363bp)
  • Sealed Air Corp (Country: US; rated: Ba1): down 13.6 bp to 120.6bp (1Y range: 83-170bp)
  • Nordstrom Inc (Country: US; rated: WR): down 12.7 bp to 231.7bp (1Y range: 211-684bp)
  • Sprint Communications Inc (Country: US; rated: Ba2): down 12.7 bp to 61.6bp (1Y range: 62-108bp)
  • Pitney Bowes Inc (Country: US; rated: LGD2 - 16%): up 16.7 bp to 424.0bp (1Y range: 363-546bp)
  • Genworth Holdings Inc (Country: US; rated: Caa1): up 18.1 bp to 553.2bp (1Y range: 447-737bp)
  • American Airlines Group Inc (Country: US; rated: B2): up 42.2 bp to 772.1bp (1Y range: 596-2,968bp)
  • Transocean Inc (Country: KY; rated: Caa3): up 117.4 bp to 2,302.5bp (1Y range: 941-7,695bp)
  • Talen Energy Supply LLC (Country: US; rated: BB-): up 2190.0 bp to 4,791.1bp

LARGEST EURO CORPORATE CDS MOVES IN THE PAST WEEK

  • Casino Guichard Perrachon SA (Country: FR; rated: WR): down 15.7 bp to 542.8bp (1Y range: 494-1,210bp)
  • Boparan Finance PLC (Country: GB; rated: WR): down 13.8 bp to 996.0bp (1Y range: 478-1,006bp)
  • TUI AG (Country: DE; rated: LGD4 - 50%): down 12.2 bp to 724.7bp (1Y range: 590-1,799bp)
  • UPC Holding BV (Country: NL; rated: LGD6 - 93%): down 9.9 bp to 199.3bp (1Y range: 201-315bp)
  • Renault SA (Country: FR; rated: A-): down 9.6 bp to 168.0bp (1Y range: 166-277bp)
  • Novafives SAS (Country: FR; rated: Caa1): down 7.6 bp to 879.3bp (1Y range: 716-1,205bp)
  • Premier Foods Finance PLC (Country: ; rated: B1): down 4.6 bp to 172.9bp (1Y range: 141-273bp)
  • Ardagh Packaging Finance PLC (Country: IE; rated: B1): down 4.5 bp to 209.9bp (1Y range: 188-272bp)
  • Marks and Spencer PLC (Country: GB; rated: Ba1): down 4.5 bp to 184.3bp (1Y range: 174-349bp)
  • Virgin Media Finance PLC (Country: GB; rated: WR): up 5.1 bp to 238.8bp (1Y range: 222-325bp)
  • Iceland Bondco PLC (Country: GB; rated: LGD3 - 46%): up 6.2 bp to 454.2bp (1Y range: 358-698bp)
  • Hammerson PLC (Country: GB; rated: Baa3): up 8.8 bp to 174.1bp (1Y range: 169-604bp)
  • Altice Finco SA (Country: LU; rated: Caa1): up 9.3 bp to 369.2bp (1Y range: 317-477bp)
  • Deutsche Lufthansa AG (Country: DE; rated: Ba2): up 9.5 bp to 256.4bp (1Y range: 236-421bp)
  • SSE PLC (Country: GB; rated: BBB-): up 10.5 bp to 51.7bp (1Y range: 41-55bp)

USD BOND ISSUES

  • Federal Home Loan Banks (Agency | Washington, United States | Rating: NR): US$175m Bond (US3130ANTC45), fixed rate (1.10% coupon) maturing on 28 September 2026, priced at 100.00 (original spread of 103 bp), callable (5nc1m)
  • Sylvamo Corp (Industrials - Other | Memphis, United States | Rating: BB): US$450m Senior Note (US87133LAA89), fixed rate (7.00% coupon) maturing on 1 September 2029, priced at 100.00 (original spread of 623 bp), callable (8nc3)
  • Anhui Transportation Holding Group HK Ltd (Transportation - Other | China (Mainland) | Rating: NR): US$400m Senior Note (XS2374621493), fixed rate (1.62% coupon) maturing on 26 August 2026, priced at 99.78 (original spread of 90 bp), non callable
  • Asian Development Bank (Supranational | Mandaluyong, Philippines | Rating: AAA): US$1,000m Senior Note (US04517PBG63), floating rate (SOFR + 18.0 bp) maturing on 27 August 2026, priced at 104.14, non callable
  • Pilgrim's Pride Corp Of West Virginia Inc (Food Processors | Greeley, Brazil | Rating: BB+): US$900m Senior Note (USU72068AH93), fixed rate (3.50% coupon) maturing on 1 March 2032, priced at 100.00 (original spread of 225 bp), callable (11nc5)
  • Pilgrims Pride Corp (Food Processors | Greeley, Brazil | Rating: BB+): US$900m Senior Note (US72147KAG31), fixed rate (3.50% coupon) maturing on 1 March 2032, priced at 100.00 (original spread of 225 bp), callable (11nc5)
  • SDG Finance Ltd (Financial - Other | China (Mainland) | Rating: NR): US$300m Bond (XS2379669299), fixed rate (2.40% coupon) maturing on 25 August 2024, priced at 100.00, non callable
  • SDG Finance Ltd (Financial - Other | China (Mainland) | Rating: NR): US$300m Bond (XS2378344456), fixed rate (2.80% coupon) maturing on 25 August 2026, priced at 100.00, non callable

EUR BOND ISSUES

  • Traton Finance Luxembourg SA (Financial - Other | Strassen, Germany | Rating: NR): €300m Inhaberschuldverschreibung (DE000A3KT6Q0), floating rate (EU03MLIB + 75.0 bp) maturing on 29 August 2023, non callable

NEW LOANS

  • Straive, signed a US$ 400m Revolving Credit / Term Loan maturing on 08/19/26, to be used for a leveraged buyout.
  • Kenan Advantage Group Inc (CCC), signed a US$ 115m Term Loan B, to be used for refinancing. It matures on 03/24/26 and initial pricing is set at LIBOR +375bps
  • Kenan Advantage Group Inc (CCC), signed a US$ 300m Term Loan, to be used for refinancing. It matures on 08/20/27 and initial pricing is set at LIBOR +725bps
  • Giti Tire Pte Ltd, signed a US$ 200m Term Loan, to be used for working capital, refinancing / return bank debt. It matures on 08/19/26 and initial pricing is set at LIBOR +375bps

NEW ISSUES IN SECURITIZED CREDIT

  • VOLT 2021-CF1 issued a fixed-rate RMBS in 2 tranches, for a total of US$ 94 m. Highest-rated tranche offering a yield to maturity of 1.99%, and the lowest-rated tranche a yield to maturity of 3.97%. Bookrunners: Goldman Sachs & Co
  • Morgan Stanley Residential Mortgage Loan Trust 2021-5 issued a floating-rate RMBS in 5 tranches, for a total of US$ 458 m. Bookrunners: Morgan Stanley International Ltd