Credit

High Yield Cash Spreads Widen Slightly, But Bonds Rise With Lower Rates

A decent amount of corporate bond issuance again today, with Coinbase printing US$ 2bn in 2 tranches (upsized from initial target of $1.5bn)

Published ET

USD Domestic Z-Spreads Curves Out To 30 Years For IG  & HY Bonds | Sources: ϕpost, Refinitiv data

USD Domestic Z-Spreads Curves Out To 30 Years For IG & HY Bonds | Sources: ϕpost, Refinitiv data


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QUICK SUMMARY

  • S&P 500 Bond Index was up 0.33% today, with investment grade up 0.36% and high yield up 0.12% (YTD total return: +0.66%)
  • ICE BofA US Corporate Index (Investment Grade) spread to worst unchanged at 86.0 bp (YTD change: -12.0 bp)
  • ICE BofA US High Yield Index spread to worst up 1.0 bp, now at 324.0 bp (YTD change: -66.0 bp)
  • S&P/LSTA U.S. Leveraged Loan 100 Index up 0.02% today (YTD total return: +2.9%)
  • New issues: US$ 26.9bn in dollars and € 11.7bn in euros

US CORPORATE OPTION-ADJUSTED SPREAD (OAS) BY RATING

  • AAA unchanged at 48 bp
  • AA up by 1 bp at 58 bp
  • A unchanged at 72 bp
  • BBB unchanged at 112 bp
  • BB up by 2 bp at 213 bp
  • B up by 1 bp at 359 bp
  • CCC down by -1 bp at 645 bp

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

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

CDS INDICES (mid-spreads)

  • Markit CDX.NA.IG 5Y up 0.2 bp, now at 88bp (YTD change: -2.6bp)
  • Markit CDX.NA.HY 5Y up 1.2 bp, now at 276bp (YTD change: -17.4bp)
  • Markit iTRAXX Europe down 0.3 bp, now at 44bp (YTD change: -3.5bp)
  • Markit iTRAXX Japan down 0.3 bp, now at 42bp (YTD change: -9.0bp)
  • Markit iTRAXX Asia Ex-Japan down 0.3 bp, now at 65bp (YTD change: +7.4bp)
CDX.NA IG & HY Credit Indices Mid Spreads | Sources: ϕpost, Refinitiv dataiTRAXX Credit Indices Mid Spreads | Sources: ϕpost, Refinitiv data

USD BOND ISSUES

  • Bank of America Corp (Banking | Charlotte, United States | Rating: A-): US$2,000m Subordinated Note (US06051GKC23), fixed rate (2.48% coupon) maturing on 21 September 2036, priced at 100.00 (original spread of 120 bp), callable (15nc10)
  • Carlisle Companies Inc (Conglomerate/Diversified Mfg | Scottsdale, United States | Rating: BBB): US$550m Senior Note (US142339AL49), fixed rate (2.20% coupon) maturing on 1 March 2032, priced at 99.52 (original spread of 97 bp), callable (10nc10)
  • Coinbase Global Inc (Financial - Other | Wilmington, United States | Rating: BB+): US$1,000m Senior Note (US19260QAD97), fixed rate (3.63% coupon) maturing on 1 October 2031, priced at 100.00 (original spread of 235 bp), callable (10nc5)
  • Coinbase Global Inc (Financial - Other | Wilmington, United States | Rating: BB+): US$1,000m Senior Note (US19260QAC15), fixed rate (3.38% coupon) maturing on 1 October 2028, priced at 100.00 (original spread of 231 bp), callable (7nc3)
  • Fidelity National Financial Inc (Property and Casualty Insurance | Jacksonville, United States | Rating: BBB): US$450m Senior Note (US31620RAL96), fixed rate (3.20% coupon) maturing on 17 September 2051, priced at 99.77 (original spread of 137 bp), callable (30nc30)
  • LCM Investments Holdings II LLC (Financial - Other | Tampa, United States | Rating: BB-): US$300m Senior Note (USU5140GAB78), fixed rate (4.88% coupon) maturing on 1 May 2029, priced at 102.00 (original spread of 347 bp), callable (8nc3)
  • Pacific Life Global Funding (Financial - Other | Newport Beach, United States | Rating: NR): US$300m Note (US6944PL2H11), fixed rate (1.60% coupon) maturing on 21 September 2028, priced at 99.83 (original spread of 55 bp), non callable
  • BP Capital Markets America Inc (Financial - Other | Chicago, United Kingdom | Rating: NR): US$1,250m Senior Note (US10373QBS84), fixed rate (3.00% coupon) maturing on 17 March 2052, priced at 100.00 (original spread of 117 bp), callable (31nc30)
  • CBOM Finance PLC (Financial - Other | Dublin, Ireland | Rating: BB): US$500m Loan Participation Note (US12504PAJ93), fixed rate (3.88% coupon) maturing on 21 September 2026, priced at 100.00 (original spread of 310 bp), non callable
  • Chile, Government of (Sovereign | Chile | Rating: A-): US$1,000m Senior Note (US168863DU93), fixed rate (3.25% coupon) maturing on 21 September 2071, priced at 95.94 (original spread of 158 bp), non callable
  • Cooperativa Nacional de Productores de Leche (Consumer Products | Montevideo, Uruguay | Rating: NR): US$5,000m Bond (UYONCO158US1), fixed rate (2.00% coupon) maturing on 20 December 2024, priced at 100.00, callable (3nc1m)
  • HPHT Finance 21 II Ltd (Financial - Other | Hong Kong | Rating: NR): US$500m Senior Note (XS2387263440), fixed rate (1.50% coupon) maturing on 17 September 2026, priced at 99.42 (original spread of 77 bp), callable (5nc5)
  • Hyundai Capital America (Financial - Other | Irvine, South Korea | Rating: BBB+): US$800m Senior Note (US44891CCA99), fixed rate (2.10% coupon) maturing on 15 September 2028, priced at 99.89 (original spread of 105 bp), callable (7nc7)
  • Hyundai Capital America (Financial - Other | Irvine, South Korea | Rating: BBB+): US$1,200m Senior Note (US44891ABY29), fixed rate (1.00% coupon) maturing on 17 September 2024, priced at 99.82 (original spread of 63 bp), with a make whole call
  • Hyundai Capital America (Financial - Other | Irvine, South Korea | Rating: BBB+): US$1,000m Senior Note (US44891ABZ93), fixed rate (1.65% coupon) maturing on 17 September 2026, priced at 99.96 (original spread of 88 bp), callable (5nc5)
  • LFS Topco LLC (Financial - Other | Lawrenceville | Rating: NR): US$300m Senior Note (US50203TAA43), fixed rate (5.88% coupon) maturing on 15 October 2026, priced at 100.00, callable (5nc2)
  • Marubeni Corp (Conglomerate/Diversified Mfg | Chiyoda-Ku, Japan | Rating: BBB): US$500m Senior Note (XS2387660280), fixed rate (1.58% coupon) maturing on 17 September 2026, priced at 100.00 (original spread of 75 bp), non callable
  • Natixis SA (Banking | Paris, France | Rating: A): US$180m Unsecured Note (XS2303548635) zero coupon maturing on 8 October 2051, non callable
  • Nomura International Funding Pte Ltd (Financial - Other | Singapore | Rating: NR): US$2,000m Unsecured Note (XS2218254899), floating rate maturing on 1 October 2036, priced at 100.00, non callable
  • Nordic Investment Bank (Supranational | Helsinki, Finland | Rating: AAA): US$1,000m Senior Note (US65562QBS30), fixed rate (0.38% coupon) maturing on 20 September 2024, priced at 99.66 (original spread of 7 bp), non callable
  • Norinchukin Bank (Banking | Chiyoda-Ku, Japan | Rating: A+): US$500m Senior Note (US656029AH80), fixed rate (2.08% coupon) maturing on 22 September 2031, priced at 100.00 (original spread of 80 bp), non callable
  • Norinchukin Bank (Banking | Chiyoda-Ku, Japan | Rating: A): US$500m Senior Note (USJ5901UAC65), fixed rate (1.28% coupon) maturing on 22 September 2026, priced at 100.00 (original spread of 50 bp), non callable
  • Norinchukin Bank (Banking | Chiyoda-Ku, Japan | Rating: A+): US$500m Senior Note (US656029AG08), fixed rate (1.28% coupon) maturing on 22 September 2026, priced at 100.00 (original spread of 50 bp), non callable
  • Norinchukin Bank (Banking | Chiyoda-Ku, Japan | Rating: A): US$500m Senior Note (USJ5901UAD49), fixed rate (2.08% coupon) maturing on 22 September 2031, priced at 100.00 (original spread of 80 bp), non callable
  • Ontario Teachers Finance Trust (Financial - Other | Toronto, Canada | Rating: NR): US$2,000m Senior Note (US68329AAK43), fixed rate (0.88% coupon) maturing on 21 September 2026, priced at 99.48 (original spread of 10 bp), non callable
  • Perfect Point Ventures Ltd (Financial - Other | Rating: NR): US$300m Senior Note (XS2380365424), fixed rate (5.20% coupon) maturing on 20 September 2025, priced at 100.00, callable (4nc2)
  • Sinochem Offshore Capital Co Ltd (Financial - Other | China (Mainland) | Rating: NR): US$600m Senior Note (XS2387357341), fixed rate (1.50% coupon) maturing on 23 September 2026, priced at 99.59, callable (5nc5)
  • Sinochem Offshore Capital Co Ltd (Financial - Other | China (Mainland) | Rating: NR): US$500m Senior Note (XS2387368975), fixed rate (2.38% coupon) maturing on 23 September 2031, priced at 99.70, callable (10nc10)
  • Sinochem Offshore Capital Co Ltd (Financial - Other | China (Mainland) | Rating: NR): US$400m Senior Note (XS2387356459), fixed rate (1.00% coupon) maturing on 23 September 2024, priced at 99.78, callable (3nc3)
  • eHi Car Services Ltd (Service - Other | Shanghai | Rating: B): US$300m Senior Note (XS2384059122), fixed rate (7.00% coupon) maturing on 21 September 2026, priced at 98.97 (original spread of 644 bp), callable (5nc3)

EUR BOND ISSUES

  • Adecco International Financial Services BV (Financial - Other | Zaltbommel, Switzerland | Rating: BBB+): €500m Senior Note (XS2386592567), fixed rate (0.50% coupon) maturing on 21 September 2031, priced at 99.91 (original spread of 86 bp), callable (10nc10)
  • Adecco International Financial Services BV (Financial - Other | Zaltbommel, Switzerland | Rating: BBB+): €500m Senior Note (XS2386592484), fixed rate (0.13% coupon) maturing on 21 September 2028, priced at 99.34 (original spread of 79 bp), callable (7nc7)
  • Caixa Geral de Depositos SA (Banking | Lisbon, Portugal | Rating: NR): €500m Note (PTCGDCOM0037), fixed rate (0.38% coupon) maturing on 21 September 2027, priced at 99.85 (original spread of 107 bp), callable (6nc5)
  • Elis SA (Service - Other | Saint-Cloud, France | Rating: BB): €200m Bond (FR0014005HZ5), fixed rate (1.63% coupon) maturing on 3 April 2028, priced at 100.13, callable (7nc6)
  • European Union (Supranational | Brussels, Bruxelles-Capitale, Belgium | Rating: AAA): €9,000m Senior Note (EU000A3KWCF4) zero coupon maturing on 4 October 2028, priced at 101.99 (original spread of 21 bp), non callable
  • Hamburg Commercial Bank AG (Banking | Hamburg, Germany | Rating: BBB): €500m Inhaberschuldverschreibung (DE000HCB0A86), floating rate maturing on 22 September 2026, priced at 99.80 (original spread of 124 bp), callable (5nc4)
  • Nationale Nederlanden Bank NV (Banking | S-Gravenhage, Netherlands | Rating: A-): €500m Note (XS2388449758), fixed rate (0.50% coupon) maturing on 21 September 2028, priced at 99.80 (original spread of 109 bp), non callable

NEW LOANS

  • Big Truck Rental LLC, signed a US$ 143m Revolving Credit Facility maturing on 09/30/26, to be used for general corporate purposes and working capital.

NEW ISSUES IN SECURITIZED CREDIT

  • GLS Auto Receivables Issuer Trust 2021-3 issued a fixed-rate ABS backed by auto receivables in 5 tranches, for a total of US$ 569 m. Highest-rated tranche offering a yield to maturity of 0.42%, and the lowest-rated tranche a yield to maturity of 3.20%. Bookrunners: Citigroup Global Markets Inc, Wells Fargo Securities LLC
  • Freddie Mac Spc Series K-F121 issued a floating-rate Agency CMBS in 1 tranche offering a spread over the floating rate of 18bp, for a total of US$ 780 m. Bookrunners: Credit Suisse, Citigroup Global Markets Inc
  • Santander Retail Auto Lease Trust 2021-C issued a floating-rate ABS backed by auto receivables in 7 tranches, for a total of US$ 1,890 m. Bookrunners: JP Morgan & Co Inc, Deutsche Bank Securities Inc, RBC Capital Markets, SG Americas Securities LLC
  • Hyundai Auto Lease Securitization Trust 2021-C issued a fixed-rate ABS backed by auto receivables in 5 tranches, for a total of US$ 1,418 m. Highest-rated tranche offering a yield to maturity of 0.12%, and the lowest-rated tranche a yield to maturity of 0.76%. Bookrunners: JP Morgan & Co Inc, Barclays Capital Group, RBC Capital Markets, Mizuho Securities USA Inc, MUFG Securities Americas Inc
  • World Omni Select Auto Trust 2021-A issued a fixed-rate ABS backed by auto receivables in 6 tranches, for a total of US$ 987 m. Highest-rated tranche offering a yield to maturity of 0.10%, and the lowest-rated tranche a yield to maturity of 1.44%. Bookrunners: Mizuho Securities USA Inc, MUFG Securities Americas, Truist Securities Inc, TD Securities (USA) LLC