Credit

HY Cash Spreads Tightened Further, Though USD Corporate Bonds Fell On Higher Rates

A monster offering priced today by aircraft leasing company AerCap (US$21bn in 9 tranches), as part of the financing of its acquisition of GE Capital Aviation Services

Published ET

American Airlines 5Y USD CDS Spread Is Dropping, While Air France 5Y EUR CDS Spread Is Rising | Source: Refinitiv

American Airlines 5Y USD CDS Spread Is Dropping, While Air France 5Y EUR CDS Spread Is Rising | Source: Refinitiv

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QUICK SUMMARY

  • S&P 500 Bond Index was down -0.17% today, with investment grade down -0.19% and high yield down -0.01% (YTD total return: -1.68%)
  • The iBoxx USD Liquid Investment Grade Total Return Index was down -0.233% today (Month-to-date: -0.90%; Year-to-date: -2.66%)
  • The iBoxx USD Liquid High Yield Total Return Index was down -0.057% today (Month-to-date: -0.22%; Year-to-date: 3.49%)
  • 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 down -5.0 bp, now at 320.0 bp (YTD change: -70.0 bp)
  • S&P/LSTA U.S. Leveraged Loan 100 Index unchanged today (YTD total return: +3.2%)
  • New issues: US$ 29.1bn in dollars and € 3.0bn in euros

US CORPORATE OPTION-ADJUSTED SPREAD (OAS) BY RATING

  • AAA unchanged at 47 bp
  • AA unchanged at 55 bp
  • A unchanged at 71 bp
  • BBB unchanged at 110 bp
  • BB down by -5 bp at 207 bp
  • B down by -4 bp at 350 bp
  • CCC down by -3 bp at 643 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 IG & HY Spreads | Sources: ϕpost, Refinitiv data

CDS INDICES (mid-spreads)

  • Markit CDX.NA.IG 5Y up 0.5 bp, now at 91bp (YTD change: +0.1bp)
  • Markit CDX.NA.HY 5Y up 2.8 bp, now at 298bp (YTD change: +5.0bp)
  • Markit iTRAXX Europe up 0.3 bp, now at 50bp (YTD change: +2.2bp)
  • Markit iTRAXX Japan down 0.2 bp, now at 48bp (YTD change: -2.9bp)
  • Markit iTRAXX Asia Ex-Japan up 1.6 bp, now at 85bp (YTD change: +26.6bp)
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

  • Transocean Inc (Country: KY; rated: Caa3): down 40.1 bp to 1,475.7bp (1Y range: 941-7,695bp)
  • American Airlines Group Inc (Country: US; rated: B2): down 31.1 bp to 698.7bp (1Y range: 596-2,968bp)
  • Office Depot Inc (Country: US; rated: WR): down 27.5 bp to 407.8bp (1Y range: 408-583bp)
  • Macy's Inc (Country: US; rated: Ba2): down 26.2 bp to 266.1bp (1Y range: 190-1,201bp)
  • Nordstrom Inc (Country: US; rated: Ba1): down 20.9 bp to 267.8bp (1Y range: 211-684bp)
  • Beazer Homes USA Inc (Country: US; rated: B2): down 20.8 bp to 353.4bp (1Y range: 231-388bp)
  • Radian Group Inc (Country: US; rated: BBB-): down 14.7 bp to 158.7bp (1Y range: 152-305bp)
  • MGIC Investment Corp (Country: US; rated: A2): down 13.9 bp to 129.7bp (1Y range: 118-222bp)
  • Petroleo Brasileiro SA Petrobras (Country: BR; rated: Ba1): up 16.1 bp to 249.8bp (1Y range: 175-266bp)
  • Staples Inc (Country: US; rated: B2): up 20.1 bp to 1,056.0bp (1Y range: 652-1,306bp)
  • Calpine Corp (Country: US; rated: LGD5 - 88%): up 27.2 bp to 371.7bp (1Y range: 173-372bp)
  • Tegna Inc (Country: US; rated: Ba3): up 28.2 bp to 388.8bp (1Y range: 148-389bp)

EURO CDS SINGLE NAMES - LARGEST MOVES IN THE PAST WEEK

  • Ineos Group Holdings SA (Country: LU; rated: LGD5 - 88%): down 15.6 bp to 264.3bp (1Y range: 199-447bp)
  • Lagardere SA (Country: FR; rated: B): down 8.1 bp to 147.3bp (1Y range: 147-350bp)
  • Iceland Bondco PLC (Country: GB; rated: LGD3 - 46%): up 7.5 bp to 622.3bp (1Y range: 358-641bp)
  • Air France KLM SA (Country: FR; rated: B-): up 7.7 bp to 409.3bp (1Y range: 390-1,211bp)
  • Altice Finco SA (Country: LU; rated: Caa1): up 8.1 bp to 449.9bp (1Y range: 333-481bp)
  • Rexel SA (Country: FR; rated: WR): up 9.7 bp to 136.9bp (1Y range: -137bp)
  • Jaguar Land Rover Automotive PLC (Country: GB; rated: WD): up 11.8 bp to 385.5bp (1Y range: 339-806bp)
  • TUI AG (Country: DE; rated: B3-PD): up 30.4 bp to 665.6bp (1Y range: 607-1,799bp)
  • Boparan Finance PLC (Country: GB; rated: WR): up 62.4 bp to 1,238.2bp (1Y range: 528-1,238bp)
  • Casino Guichard Perrachon SA (Country: FR; rated: WR): up 79.2 bp to 700.0bp (1Y range: 464-1,181bp)

USD BOND ISSUES

  • Banner Health (Health Care Facilities | Phoenix, United States | Rating: NR): US$322m Bond (US06654DAG25), fixed rate (2.91% coupon) maturing on 1 January 2042, priced at 100.00 (original spread of 101 bp), callable (20nc20)
  • Federal Farm Credit Banks Funding Corp (Agency | Jersey City, United States | Rating: AA+): US$125m Bond (US3133ENCJ73), fixed rate (1.16% coupon) maturing on 27 October 2026, priced at 100.00 (original spread of -4 bp), non callable
  • Federal Farm Credit Banks Funding Corp (Agency | Jersey City, United States | Rating: AA+): US$215m Bond (US3133ENCM03), floating rate (SOFR + 3.0 bp) maturing on 27 October 2023, priced at 100.00, callable (2nc1)
  • Federal Home Loan Banks (Agency | Washington, Washington Dc, United States | Rating: NR): US$250m Bond (US3130APN842), fixed rate (2.02% coupon) maturing on 28 October 2031, priced at 100.00, callable (10nc1)
  • Federal Home Loan Banks (Agency | Washington, United States | Rating: NR): US$110m Bond (US3130APN438), fixed rate (0.63% coupon) maturing on 27 October 2026, priced at 100.00 (original spread of 17 bp), callable (5nc2)
  • Kosmos Energy Ltd (Oil and Gas | Dallas, United States | Rating: B+): US$400m Senior Note (USU5007TAD73), fixed rate (7.75% coupon) maturing on 1 May 2027, priced at 100.00 (original spread of 648 bp), callable (6nc2)
  • AerCap Ireland Capital DAC (Financial - Other | Ireland | Rating: BBB-): US$1,500m Senior Note (US00774MAY12), fixed rate (3.40% coupon) maturing on 29 October 2033, priced at 99.57 (original spread of 175 bp), callable (12nc12)
  • AerCap Ireland Capital DAC (Financial - Other | Ireland | Rating: BBB-): US$3,750m Senior Note (US00774MAV72), fixed rate (2.45% coupon) maturing on 29 October 2026, priced at 99.83 (original spread of 125 bp), callable (5nc5)
  • AerCap Ireland Capital DAC (Financial - Other | Ireland | Rating: BBB-): US$4,000m Senior Note (US00774MAX39), fixed rate (3.30% coupon) maturing on 30 January 2032, priced at 99.62 (original spread of 165 bp), callable (10nc10)
  • AerCap Ireland Capital DAC (Financial - Other | Ireland | Rating: BBB-): US$1,000m Senior Note (US00774MBB00), fixed rate (1.75% coupon) maturing on 29 October 2024, priced at 99.88 (original spread of 100 bp), callable (3nc1)
  • AerCap Ireland Capital DAC (Financial - Other | Ireland | Rating: BBB-): US$1,750m Senior Note (US00774MAT27), fixed rate (1.15% coupon) maturing on 29 October 2023, priced at 100.00 (original spread of 70 bp), with a special call
  • AerCap Ireland Capital DAC (Financial - Other | Ireland | Rating: BBB-): US$1,500m Senior Note (US00774MAZ86), fixed rate (3.85% coupon) maturing on 29 October 2041, priced at 99.77 (original spread of 175 bp), callable (20nc20)
  • AerCap Ireland Capital DAC (Financial - Other | Ireland | Rating: BBB-): US$3,250m Senior Note (US00774MAU99), fixed rate (1.65% coupon) maturing on 29 October 2024, priced at 99.88 (original spread of 90 bp), callable (3nc3)
  • Caisse Amortissement de la Dette Sociale (Agency | Paris, Ile-De-France, France | Rating: AA): US$3,000m Senior Note (XS2402074277), fixed rate (1.25% coupon) maturing on 28 October 2026, priced at 99.69 (original spread of 12 bp), non callable
  • Fidelity Bank PLC (Banking | Victoria Island, Lagos, Nigeria | Rating: B-): US$400m Senior Note (US316044AC04), fixed rate (7.63% coupon) maturing on 28 October 2026, priced at 98.98 (original spread of 659 bp), non callable
  • Huzhou City Investment Development Group Co Ltd (Financial - Other | Huzhou, Zhejiang, China (Mainland) | Rating: BBB-): US$200m Senior Note (XS2388293487), fixed rate (2.95% coupon) maturing on 28 October 2026, priced at 100.00, non callable
  • Industrial and Commercial Bank of China Ltd (Hong Kong Branch) (Banking | China (Mainland) | Rating: NR): US$1,000m Senior Note (XS2381043350), fixed rate (1.63% coupon) maturing on 28 October 2026, priced at 99.98 (original spread of 45 bp), non callable
  • Industrial and Commercial Bank of China Ltd (Singapore Branch) (Banking | China (Mainland) | Rating: NR): US$1,050m Senior Note (XS2384565508), fixed rate (1.00% coupon) maturing on 28 October 2024, priced at 99.81 (original spread of 30 bp), non callable
  • Nomura International Funding Pte Ltd (Financial - Other | Singapore | Rating: NR): US$5,000m Unsecured Note (XS2218201262), floating rate maturing on 1 November 2031, priced at 100.00, non callable
  • Zhaoqing Guolian Investment Holding Co Ltd (Financial - Other | Zhaoqing, China (Mainland) | Rating: BBB-): US$300m Senior Note (XS2401032490), fixed rate (2.68% coupon) maturing on 26 October 2024, priced at 100.00, non callable

EUR BOND ISSUES

  • Banca Carige SpA Cassa di Risparmio di Genova e Imperia (Banking | Genoa, Italy | Rating: CCC): €750m Obbligazione Bancaria Garantita (Covered Bond) (IT0005461626), fixed rate (0.63% coupon) maturing on 28 October 2028, priced at 99.65 (original spread of 99 bp), non callable
  • Bausparkasse Schwaebisch Hall Bausparkasse der Volksbanken und Raiffeisenbanken AG (Banking | Schwaebisch Hall, Germany | Rating: A+): €500m Hypothekenpfandbrief (Covered Bond) (DE000A3MP6H1), fixed rate (0.20% coupon) maturing on 28 October 2031, priced at 99.40 (original spread of 37 bp), non callable
  • Industrial and Commercial Bank of China Ltd (Luxembourg Branch) (Banking | Luxembourg, China (Mainland) | Rating: NR): €500m Senior Note (XS2384014705), fixed rate (0.13% coupon) maturing on 28 October 2024, priced at 99.79 (original spread of 80 bp), non callable
  • JP Morgan Structured Products BV (Financial - Other | Amsterdam, Noord-Holland, United States | Rating: NR): €215m Unsecured Note (XS2168724875) zero coupon maturing on 3 November 2056, priced at 100.00, non callable
  • Paganini Bidco SpA (Financial - Other | Rome, Roma, Jersey | Rating: B): €765m Note (XS2401961151), floating rate (EU03MLIB + 425.0 bp) maturing on 30 October 2028, priced at 99.75, callable (7nc1)
  • Werfenlife SA (Health Care Facilities | L'Hospitalet De Llobregat, Spain | Rating: BBB-): €300m Senior Note (XS2392462730), fixed rate (0.50% coupon) maturing on 28 October 2026, priced at 99.45 (original spread of 104 bp), callable (5nc5)