Credit

Spreads Rise Across The US Credit Complex, But IG Bond Prices End Up On Duration Bid

In European single names, TUI and Air France are seeing their credit spreads widen again, with a weak rebound in travel now compounded by high crude oil prices

Published ET

Air France, TUI 5-Year EUR CDS Spreads | Source: Refinitiv

Air France, TUI 5-Year EUR CDS Spreads | Source: Refinitiv

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QUICK SUMMARY

  • S&P 500 Bond Index was up 0.31% today, with investment grade up 0.35% and high yield down -0.09% (YTD total return: -1.30%)
  • The iBoxx USD Liquid Investment Grade Total Return Index was up 0.38% today (Month-to-date: -0.45%; Year-to-date: -2.22%)
  • The iBoxx USD Liquid High Yield Total Return Index was down -0.27% today (Month-to-date: -0.58%; Year-to-date: 3.11%)
  • ICE BofA US Corporate Index (Investment Grade) spread to worst up 2.0 bp, now at 87.0 bp (YTD change: -11.0 bp)
  • ICE BofA US High Yield Index spread to worst up 9.0 bp, now at 344.0 bp (YTD change: -46.0 bp)
  • S&P/LSTA U.S. Leveraged Loan 100 Index down -0.02% today (YTD total return: +3.2%)
  • New issues: US$ 8.3bn in dollars and € 13.1bn in euros

US CORPORATE OPTION-ADJUSTED SPREAD (OAS) BY RATING

  • AAA up by 1 bp at 49 bp
  • AA unchanged at 56 bp
  • A unchanged at 72 bp
  • BBB up by 1 bp at 112 bp
  • BB up by 8 bp at 230 bp
  • B up by 9 bp at 377 bp
  • CCC up by 9 bp at 671 bp

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

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

CDS INDICES (mid-spreads)

  • Markit CDX.NA.IG 5Y up 1.1 bp, now at 94bp (YTD change: +3.2bp)
  • Markit CDX.NA.HY 5Y up 6.7 bp, now at 315bp (YTD change: +21.6bp)
  • Markit iTRAXX Europe unchanged at 53bp (YTD change: +5.1bp)
  • Markit iTRAXX Japan up 0.2 bp, now at 51bp (YTD change: -0.5bp)
  • Markit iTRAXX Asia Ex-Japan down 4.5 bp, now at 93bp (YTD change: +35.1bp)
CDX.NA IG & HY Credit Indices Mid Spreads | Sources: ϕpost, Refinitiv dataiTRAXX Credit Indices Mid Spreads | Sources: ϕpost, Refinitiv data

USD CDS SINGLE NAMES - LARGEST MOVES IN THE PAST WEEK

  • RR Donnelley & Sons Co (Country: US; rated: B2): down 215.8 bp to 341.0bp (1Y range: 341-776bp)
  • Apache Corp (Country: US; rated: Ba1): down 14.6 bp to 181.4bp (1Y range: 165-453bp)
  • Avis Budget Car Rental LLC (Country: US; rated: LGD2 - 17%): down 14.0 bp to 228.3bp (1Y range: 137-2,386bp)
  • American Axle & Manufacturing Inc (Country: US; rated: Ba1): down 11.9 bp to 424.7bp (1Y range: 336-449bp)
  • Tenet Healthcare Corp (Country: US; rated: B2): up 12.5 bp to 292.5bp (1Y range: 242-469bp)
  • Tegna Inc (Country: US; rated: Ba3): up 13.1 bp to 356.7bp (1Y range: 148-357bp)
  • Murphy Oil Corp (Country: US; rated: Ba3): up 13.8 bp to 339.6bp (1Y range: 280-763bp)
  • Avon Products Inc (Country: GB; rated: WR): up 14.1 bp to 210.8bp (1Y range: 160-255bp)
  • Calpine Corp (Country: US; rated: LGD5 - 88%): up 15.2 bp to 344.9bp (1Y range: 173-349bp)
  • Carnival Corp (Country: US; rated: LGD5 - 72%): up 17.7 bp to 408.6bp (1Y range: 291-1,214bp)
  • MBIA Insurance Corp (Country: US; rated: Caa1): up 17.8 bp to 566.5bp (1Y range: 515-635bp)
  • Transocean Inc (Country: KY; rated: Caa3): up 19.0 bp to 1,517.1bp (1Y range: 941-7,695bp)
  • Pitney Bowes Inc (Country: US; rated: LGD2 - 16%): up 28.3 bp to 516.9bp (1Y range: 363-517bp)

EURO CDS SINGLE NAMES - LARGEST MOVES IN THE PAST WEEK

  • Jaguar Land Rover Automotive PLC (Country: GB; rated: WD): down 44.6 bp to 406.2bp (1Y range: 339-806bp)
  • Rolls-Royce PLC (Country: GB; rated: BB-): down 9.0 bp to 184.0bp (1Y range: 181-447bp)
  • CMA CGM SA (Country: FR; rated: Ba3): up 7.6 bp to 357.1bp (1Y range: 259-734bp)
  • Next PLC (Country: GB; rated: BB): up 7.8 bp to 89.2bp (1Y range: 72-147bp)
  • Air France KLM SA (Country: FR; rated: B-): up 8.1 bp to 403.1bp (1Y range: 390-1,211bp)
  • Monitchem Holdco 3 SA (Country: LU; rated: B2): up 8.7 bp to 227.2bp (1Y range: 194-393bp)
  • Unilabs SubHolding AB (publ) (Country: SE; rated: B2): up 10.7 bp to 216.8bp (1Y range: -217bp)
  • TUI AG (Country: DE; rated: WR): up 10.7 bp to 644.2bp (1Y range: 609-1,799bp)
  • Altice Finco SA (Country: LU; rated: Caa1): up 20.0 bp to 479.0bp (1Y range: 333-479bp)
  • Ineos Group Holdings SA (Country: LU; rated: LGD5 - 88%): up 25.7 bp to 281.4bp (1Y range: 199-447bp)
  • Ladbrokes Coral Group Ltd (Country: GB; rated: WR): up 37.5 bp to 169.6bp (1Y range: 107-227bp)
  • Novafives SAS (Country: FR; rated: Caa1): up 46.2 bp to 776.0bp (1Y range: 660-1,205bp)
  • Iceland Bondco PLC (Country: GB; rated: LGD3 - 46%): up 70.5 bp to 635.2bp (1Y range: 358-635bp)
  • Casino Guichard Perrachon SA (Country: FR; rated: WR): up 75.6 bp to 667.5bp (1Y range: 464-1,181bp)
  • Boparan Finance PLC (Country: GB; rated: WR): up 98.5 bp to 1,207.0bp (1Y range: 528-1,207bp)

USD BOND ISSUES

  • Federal Home Loan Banks (Agency | Washington, United States | Rating: NR): US$400m Bond (US3130APJ550), fixed rate (1.25% coupon) maturing on 26 October 2026, priced at 100.00 (original spread of 117 bp), callable (5nc3m)
  • General Motors Financial Company Inc (Financial - Other | Fort Worth, Texas, United States | Rating: BBB-): US$1,000m Senior Note (US37045XDP87), fixed rate (2.40% coupon) maturing on 15 October 2028, priced at 99.75 (original spread of 105 bp), callable (7nc7)
  • General Motors Financial Company Inc (Financial - Other | Fort Worth, Texas, United States | Rating: BBB-): US$400m Senior Note (US37045XDN30), floating rate (SOFR + 62.0 bp) maturing on 15 October 2024, priced at 100.00, non callable
  • General Motors Financial Company Inc (Financial - Other | Fort Worth, Texas, United States | Rating: BBB-): US$850m Senior Note (US37045XDM56), fixed rate (1.20% coupon) maturing on 15 October 2024, priced at 99.96 (original spread of 60 bp), with a make whole call
  • Bpce SA (Banking | Paris, France | Rating: A): US$1,000m Note (US05583JAK88), floating rate maturing on 19 October 2027, priced at 100.00, callable (6nc5)
  • Bpce SA (Banking | Paris, France | Rating: A): US$750m Subordinated Note (US05578QAG82), floating rate maturing on 19 October 2042, priced at 100.00, callable (21nc20)
  • Bpce SA (Banking | Paris, France | Rating: A): US$1,000m Subordinated Note (US05578QAF00), floating rate maturing on 19 October 2032, priced at 100.00, callable (11nc10)
  • Canadian Imperial Bank of Commerce (Banking | Toronto, Ontario, Canada | Rating: A+): US$650m Senior Note (US13607HYF36), fixed rate (1.00% coupon) maturing on 18 October 2024, priced at 99.98 (original spread of 40 bp), with a make whole call
  • Canadian Imperial Bank of Commerce (Banking | Toronto, Canada | Rating: A+): US$700m Senior Note (US13607HYE60), floating rate (SOFR + 42.0 bp) maturing on 18 October 2024, priced at 100.00, non callable
  • IOI Investment (L) Bhd (Financial - Other | Putrajaya, Malaysia | Rating: NR): US$200m Unsecured Note (XS2399889893), fixed rate (2.13% coupon) maturing on 27 October 2026, priced at 100.00, non callable
  • IOI Investment (L) Bhd (Financial - Other | Putrajaya, Malaysia | Rating: NR): US$300m Unsecured Note (XS2399889976), fixed rate (3.00% coupon) maturing on 27 October 2031, priced at 100.00, non callable
  • Industrial and Commercial Bank of China Ltd (Hong Kong Branch) (Banking | China (Mainland) | Rating: NR): US$500m Unsecured Note (XS2381043350), fixed rate (1.25% coupon) maturing on 20 September 2026, priced at 100.00, non callable
  • Intesa Sanpaolo SpA (Banking | Torino, Italy | Rating: BBB-): US$200m Unsecured Note (XS2395954998), fixed rate (2.28% coupon) maturing on 14 October 2031, priced at 100.00, non callable

EUR BOND ISSUES

  • European Union (Supranational | Brussels, Belgium | Rating: AAA): €12,000m Senior Note (EU000A3K4C42), fixed rate (0.40% coupon) maturing on 4 February 2037, priced at 99.22 (original spread of 32 bp), non callable
  • Hera SpA (Gas Utility - Local Distrib | Bologna, Bologna, Italy | Rating: BBB): €500m Unsecured Note (XS2399933386), fixed rate (1.00% coupon) maturing on 25 April 2034, priced at 100.00, non callable
  • Instituto de Credito Oficial (Agency | Madrid, Spain | Rating: A-): €215m Note (XS2398289731), floating rate maturing on 20 October 2033, priced at 100.00, non callable
  • NRW Bank (Agency | Dusseldorf, Nordrhein-Westfalen, Germany | Rating: AA): €150m Inhaberschuldverschreibung (DE000NWB2PX0), fixed rate (0.02% coupon) maturing on 14 October 2033, priced at 100.00, callable (12nc1)
  • Single Platform Investment Repackaging Entity SA (Financial - Other | Luxembourg, Netherlands | Rating: NR): €200m Unsecured Note (XS2398391933), fixed rate (0.97% coupon) maturing on 25 May 2040, priced at 100.00, non callable

NEW LOANS

  • Fargo-Moorhead Area Diversion, signed a US$ 586m Revolving Credit Facility maturing on 01/20/23, to be used for project finance
  • Heubach GmbH, signed a US$ 610m Term Loan B maturing on 10/26/28, to be used for acquisition financing
  • CMI Marketing Inc, signed a US$ 385m Term Loan B, to be used for general corporate purposes. It matures on 03/22/28 and initial pricing is set at LIBOR +475bps
  • Produbanco, signed a US$ 150m Term Loan, to be used for general corporate purposes
  • Orsted A/S (BBB+), signed a € 2,000m Revolving Credit Facility maturing on 10/11/26, to be used for general corporate purposes

NEW ISSUES IN SECURITIZED CREDIT

  • SBA Series 2021-2 & 3 issued a fixed-rate ABS backed by certificates in 2 tranches, for a total of US$ 1,790 m. Highest-rated tranche offering a yield to maturity of 1.84%, and the lowest-rated tranche a yield to maturity of 2.61%. Bookrunners: Goldman Sachs & Co, JP Morgan & Co Inc, Barclays Capital Group, TD Securities (USA) Inc, Citigroup Global Markets Inc, Wells Fargo Securities LLC, Mizuho Securities USA Inc
  • Oceanview Mortgage Trust 2021-5 issued a fixed-rate RMBS in 5 tranches, for a total of US$ 467 m. Highest-rated tranche offering a yield to maturity of 2.08%, and the lowest-rated tranche a yield to maturity of 2.49%. Bookrunners: Wells Fargo Securities LLC
  • CSMC 2021-B33 issued a fixed-rate CMBS in 4 tranches, for a total of US$ 145 m. Highest-rated tranche offering a yield to maturity of 2.90%, and the lowest-rated tranche a yield to maturity of 3.61%. Bookrunners: Credit Suisse
  • RRE 10 Loan Management Designated Activity Company issued a floating-rate CLO in 5 tranches, for a total of € 523 m. Highest-rated tranche offering a spread over the floating rate of 100bp, and the lowest-rated tranche a spread of 615bp. Bookrunners: BNP Paribas SA