Credit

Compared To The Weakness In Stocks, Credit Was Rather Stable, With Just A Little Widening In HY Cash Spreads

A small amount of corporate bond issuance to start the week, with RBC's US$ 2.75bn in 4 tranches the largest investment grade deal priced today

Published ET

Southeast Supply Header (USU83854AB29), an operator of natural gas pipelines has seen its OAS drop with the huge NG rally | Source: Refinitiv

Southeast Supply Header (USU83854AB29), an operator of natural gas pipelines has seen its OAS drop with the huge NG rally | Source: Refinitiv

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QUICK SUMMARY

  • S&P 500 Bond Index was down -0.08% today, with investment grade down -0.09% and high yield down -0.05% (YTD total return: -0.69%)
  • The iBoxx USD Liquid Investment Grade Total Return Index was down -0.163% today (Month-to-date: 0.31%; Year-to-date: -1.47%)
  • The iBoxx USD Liquid High Yield Total Return Index was down -0.105% today (Month-to-date: -0.09%; Year-to-date: 3.62%)
  • ICE BofA US Corporate Index (Investment Grade) spread to worst unchanged at 85.0 bp (YTD change: -13.0 bp)
  • ICE BofA US High Yield Index spread to worst up 1.0 bp, now at 336.0 bp (YTD change: -54.0 bp)
  • S&P/LSTA U.S. Leveraged Loan 100 Index up 0.03% today (YTD total return: +3.1%)
  • New issues: US$ 4.3bn in dollars and € 1.0bn in euros

US CORPORATE OPTION-ADJUSTED SPREAD (OAS) BY RATING

  • AAA unchanged at 47 bp
  • AA unchanged at 56 bp
  • A unchanged at 71 bp
  • BBB up by 1 bp at 111 bp
  • BB up by 2 bp at 225 bp
  • B unchanged at 369 bp
  • CCC up by 3 bp at 659 bp

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

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

CDS INDICES (mid-spreads)

  • Markit CDX.NA.IG 5Y up 0.9 bp, now at 92bp (YTD change: +bp)
  • Markit CDX.NA.HY 5Y up 5.5 bp, now at 303bp (YTD change: +bp)
  • Markit iTRAXX Europe unchanged at 51bp (YTD change: +3.1bp)
  • Markit iTRAXX Japan up 1.2 bp, now at 49bp (YTD change: -2.0bp)
  • Markit iTRAXX Asia Ex-Japan up 3.8 bp, now at 90bp (YTD change: +31.5bp)
CDX.NA IH & HY Credit Indices Mid Spreads | Sources: ϕpost, Refinitiv dataiTRAXX Credit Indices Mid Spreads | Sources: ϕpost, Refinitiv data

TOP BONDS MOVES IN THE PAST WEEK - USD HY

  • Issuer: AAG FH LP (Toronto, Canada) | Coupon: 9.75% | Maturity: 15/7/2024 | Rating: B- | ISIN: USC33027AA82 | Z-spread up by 67.0 bp to 1,047.2 bp, with the yield to worst at 10.6% and the bond now trading down to 97.0 cents on the dollar (1Y price range: 96.0-99.8).
  • Issuer: YPF SA (Buenos Aires, Argentina) | Coupon: 7.00% | Maturity: 15/12/2047 | Rating: CCC | ISIN: USP989MJBN03 | Z-spread up by 65.6 bp to 912.3 bp, with the yield to worst at 10.8% and the bond now trading down to 65.9 cents on the dollar (1Y price range: 48.0-72.0).
  • Issuer: Seazen Group Ltd (Shanghai, Cayman Islands) | Coupon: 6.00% | Maturity: 12/8/2024 | Rating: BB+ | ISIN: XS2215175634 | Z-spread up by 62.5 bp to 713.9 bp, with the yield to worst at 7.2% and the bond now trading down to 96.0 cents on the dollar (1Y price range: 96.0-105.8).
  • Issuer: Metinvest BV (S-GRAVENHAGE, Netherlands) | Coupon: 8.50% | Maturity: 23/4/2026 | Rating: B | ISIN: XS1806400708 | Z-spread up by 60.4 bp to 493.3 bp, with the yield to worst at 5.6% and the bond now trading down to 110.1 cents on the dollar (1Y price range: 105.0-115.1).
  • Issuer: Yapi ve Kredi Bankasi AS (Turkey) | Coupon: 5.85% | Maturity: 21/6/2024 | Rating: B | ISIN: XS1634372954 | Z-spread up by 55.5 bp to 455.0 bp, with the yield to worst at 4.9% and the bond now trading down to 102.0 cents on the dollar (1Y price range: 97.8-104.0).
  • Issuer: Turkiye Vakiflar Bankasi TAO (Turkey) | Coupon: 5.25% | Maturity: 5/2/2025 | Rating: B | ISIN: XS2112797290 | Z-spread up by 49.2 bp to 491.5 bp, with the yield to worst at 5.2% and the bond now trading down to 99.1 cents on the dollar (1Y price range: 94.0-101.0).
  • Issuer: Kondor Finance PLC (London, United Kingdom) | Coupon: 7.63% | Maturity: 8/11/2026 | Rating: B | ISIN: XS2077601610 | Z-spread up by 42.6 bp to 711.4 bp, with the yield to worst at 7.7% and the bond now trading down to 98.6 cents on the dollar (1Y price range: 97.8-105.9).
  • Issuer: SoftBank Group Corp (Minato-ku, Japan) | Coupon: 4.00% | Maturity: 6/7/2026 | Rating: BB+ | ISIN: XS2361252971 | Z-spread up by 35.5 bp to 369.3 bp, with the yield to worst at 4.5% and the bond now trading down to 97.2 cents on the dollar (1Y price range: 97.5-100.5).
  • Issuer: Oi SA em Recuperacao Judicial (Rio de Janeiro, Brazil) | Coupon: 10.00% | Maturity: 27/7/2025 | Rating: CCC+ | ISIN: USP7354PAA23 | Z-spread down by 34.1 bp to 1,108.3 bp, with the yield to worst at 11.2% and the bond now trading up to 95.4 cents on the dollar (1Y price range: 93.8-107.0).
  • Issuer: Southeast Supply Header LLC (Houston, Texas (US)) | Coupon: 4.25% | Maturity: 15/6/2024 | Rating: BB- | ISIN: USU83854AB29 | Z-spread down by 39.1 bp to 237.4 bp, with the yield to worst at 2.5% and the bond now trading up to 103.2 cents on the dollar (1Y price range: 98.4-103.4).
  • Issuer: Banco Safra SA (Cayman Islands Branch) (George Town, Cayman Islands) | Coupon: 4.13% | Maturity: 8/2/2023 | Rating: BB- | ISIN: US05964TAQ22 | Z-spread down by 46.8 bp to 148.3 bp, with the yield to worst at 1.5% and the bond now trading up to 103.1 cents on the dollar (1Y price range: 102.3-104.8).

TOP BONDS MOVES IN THE PAST WEEK - EUR HY

  • Issuer: Adler Group SA (Senningerberg, Luxembourg) | Coupon: 2.75% | Maturity: 13/11/2026 | Rating: BB+ | ISIN: XS2248826294 | Z-spread up by 119.2 bp to 608.1 bp, with the yield to worst at 5.7% and the bond now trading down to 86.6 cents on the dollar (1Y price range: 83.7-103.2).
  • Issuer: Akropolis Group UAB (Vilnius, Lithuania) | Coupon: 2.88% | Maturity: 2/6/2026 | Rating: BB+ | ISIN: XS2346869097 | Z-spread up by 33.1 bp to 378.7 bp, with the yield to worst at 3.4% and the bond now trading down to 97.1 cents on the dollar (1Y price range: 96.4-99.4).
  • Issuer: CyrusOne LP (Dallas, Texas (US)) | Coupon: 1.45% | Maturity: 22/1/2027 | Rating: BB+ | ISIN: XS2089972629 | Z-spread up by 30.9 bp to 153.6 bp, with the yield to worst at 1.3% and the bond now trading down to 100.5 cents on the dollar (1Y price range: 100.3-103.1).
  • Issuer: SoftBank Group Corp (Minato-Ku, Japan) | Coupon: 3.38% | Maturity: 6/7/2029 | Rating: BB+ | ISIN: XS2361255057 | Z-spread up by 23.4 bp to 439.2 bp, with the yield to worst at 4.2% and the bond now trading down to 93.8 cents on the dollar (1Y price range: 93.8-99.9).
  • Issuer: Standard Industries Inc (Parsippany, New Jersey (US)) | Coupon: 2.25% | Maturity: 21/11/2026 | Rating: B+ | ISIN: XS2080766475 | Z-spread up by 17.7 bp to 295.3 bp, with the yield to worst at 2.6% and the bond now trading down to 97.6 cents on the dollar (1Y price range: 96.7-102.9).
  • Issuer: Nexi SpA (Milan, Italy) | Coupon: 1.63% | Maturity: 30/4/2026 | Rating: BB- | ISIN: XS2332589972 | Z-spread up by 17.0 bp to 188.5 bp, with the yield to worst at 1.5% and the bond now trading down to 99.9 cents on the dollar (1Y price range: 98.3-101.1).
  • Issuer: Renault SA (Boulogne-Billancourt, France) | Coupon: 2.38% | Maturity: 25/5/2026 | Rating: BB | ISIN: FR0014000NZ4 | Z-spread up by 14.3 bp to 240.2 bp (CDS basis: -67.8bp), with the yield to worst at 2.1% and the bond now trading down to 100.9 cents on the dollar (1Y price range: 99.5-102.9).
  • Issuer: Webuild SpA (Milan, Italy) | Coupon: 5.88% | Maturity: 15/12/2025 | Rating: BB- | ISIN: XS2271356201 | Z-spread up by 14.3 bp to 311.0 bp, with the yield to worst at 2.6% and the bond now trading down to 110.7 cents on the dollar (1Y price range: 99.6-111.6).
  • Issuer: Petroleos Mexicanos (Miguel Hidalgo, Mexico) | Coupon: 3.75% | Maturity: 16/4/2026 | Rating: BB- | ISIN: XS1057659838 | Z-spread up by 14.2 bp to 394.7 bp (CDS basis: -53.7bp), with the yield to worst at 3.6% and the bond now trading down to 100.2 cents on the dollar (1Y price range: 95.9-103.3).
  • Issuer: Teva Pharmaceutical Finance Netherlands II BV (Amsterdam, Netherlands) | Coupon: 1.88% | Maturity: 31/3/2027 | Rating: BB- | ISIN: XS1211044075 | Z-spread down by 44.2 bp to 323.3 bp, with the yield to worst at 2.9% and the bond now trading up to 94.1 cents on the dollar (1Y price range: 90.5-95.4).

USD BOND ISSUES

  • Canpack SA (Industrials - Other | Krakow, United States | Rating: BB): US$800m Senior Note (US13806CAA09), fixed rate (3.88% coupon) maturing on 15 November 2029, priced at 100.00, callable (8nc3)
  • Citigroup Global Markets Holdings Inc (Securities | New York City, United States | Rating: BBB+): US$272m Unsecured Note (XS2307369012) zero coupon maturing on 15 October 2026, non callable
  • Landeskreditbank Baden Wuerttemberg Foerderbank (Agency | Karlsruhe, Germany | Rating: AA+): US$500m Senior Note (XS2396652682), fixed rate (1.38% coupon) maturing on 12 October 2028, priced at 99.84 (original spread of 18 bp), non callable
  • Royal Bank of Canada (Banking | Toronto, Ontario, Canada | Rating: A): US$1,000m Senior Note (US78016EZX83), fixed rate (0.75% coupon) maturing on 7 October 2024, priced at 99.87 (original spread of 30 bp), non callable
  • Royal Bank of Canada (Banking | Toronto, Canada | Rating: A): US$350m Senior Note (US78016EYD39), floating rate (SOFR + 59.0 bp) maturing on 2 November 2026, priced at 100.00, non callable
  • Royal Bank of Canada (Banking | Toronto, Canada | Rating: A): US$500m Senior Note (US78016EZY66), floating rate (SOFR + 34.0 bp) maturing on 7 October 2024, priced at 100.00, non callable
  • Royal Bank of Canada (Banking | Toronto, Canada | Rating: A): US$900m Senior Note (US78016EZZ32), fixed rate (1.40% coupon) maturing on 2 November 2026, priced at 99.89 (original spread of 48 bp), with a make whole call

EUR BOND ISSUES

  • International Bank for Reconstruction and Development (Supranational | Washington, Washington Dc, United States | Rating: AAA): €500m Unsecured Note (XS2391787319), floating rate maturing on 5 October 2033, priced at 100.00, non callable
  • International Bank for Reconstruction and Development (Supranational | Washington, Washington Dc, United States | Rating: AAA): €150m Unsecured Note (XS2395954642), floating rate maturing on 17 October 2033, priced at 100.00, non callable
  • Sacyr SA (Home Builders | Madrid, Madrid, Spain | Rating: NR): €150m Unsecured Note (XS2393950741), fixed rate (3.25% coupon) maturing on 2 April 2024, priced at 100.00, non callable
  • Single Platform Investment Repackaging Entity SA (Financial - Other | Luxembourg, Netherlands | Rating: NR): €200m Unsecured Note (XS2392591207), fixed rate (0.87% coupon) maturing on 25 May 2040, priced at 100.00, non callable

NEW LOANS

  • EyeCare Partners LLC (B), signed a US$ 400m Term Loan B, to be used for acquisition financing. It matures on 10/14/28 and initial pricing is set at LIBOR +400bps

NEW ISSUES IN SECURITIZED CREDIT

  • OPG Trust 2021-Port issued a floating-rate CMBS in 8 tranches, for a total of US$ 1,350 m. Highest-rated tranche offering a spread over the floating rate of 65bp, and the lowest-rated tranche a spread of 340bp. Bookrunners: Goldman Sachs & Co, Morgan Stanley International Ltd, Deutsche Bank Securities Inc, Citigroup Global Markets Inc