QUICK SUMMARY

• S&P 500 Bond Index was up 0.27% today, with investment grade up 0.28% and high yield up 0.12% (YTD total return: -1.09%)
• The iBoxx USD Liquid Investment Grade Total Return Index was up 0.425% today (Month-to-date: -0.05%; Year-to-date: -1.83%)
• The iBoxx USD Liquid High Yield Total Return Index was up 0.039% today (Month-to-date: -0.29%; Year-to-date: 3.41%)
• 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 -2.0 bp, now at 326.0 bp (YTD change: -64.0 bp)
• S&P/LSTA U.S. Leveraged Loan 100 Index down -0.01% today (YTD total return: +3.2%)

US CORPORATE OPTION-ADJUSTED SPREAD (OAS) BY RATING

• AAA down by -1 bp at 47 bp
• AA down by -1 bp at 55 bp
• A unchanged at 71 bp
• BBB unchanged at 110 bp
• BB down by -1 bp at 213 bp
• B down by -2 bp at 356 bp
• CCC down by -7 bp at 647 bp

CDS INDICES (mid-spreads)

• Markit CDX.NA.IG 5Y down 0.2 bp, now at 90bp (YTD change: -0.1bp)
• Markit CDX.NA.HY 5Y down 2.7 bp, now at 298bp (YTD change: +5.3bp)
• Markit iTRAXX Europe down 1.2 bp, now at 49bp (YTD change: +1.0bp)
• Markit iTRAXX Japan down 0.2 bp, now at 48bp (YTD change: -3.0bp)
• Markit iTRAXX Asia Ex-Japan down 2.2 bp, now at 81bp (YTD change: +22.9bp)

TOP BONDS MOVES IN THE PAST WEEK - USD HY

• Issuer: Seazen Group Ltd (Shanghai, Cayman Islands) | Coupon: 6.00% | Maturity: 12/8/2024 | Rating: BB+ | ISIN: XS2215175634 | Z-spread up by 98.0 bp to 896.8 bp, with the yield to worst at 9.2% and the bond now trading down to 91.4 cents on the dollar (1Y price range: 87.1-105.8).
• Issuer: JSM Global SARL (Luxembourg, Luxembourg) | Coupon: 4.75% | Maturity: 20/10/2030 | Rating: BB | ISIN: USL5788AAA99 | Z-spread up by 45.7 bp to 384.4 bp, with the yield to worst at 5.3% and the bond now trading down to 95.4 cents on the dollar (1Y price range: 95.3-107.7).
• Issuer: BRF SA (ITAJAI, Brazil) | Coupon: 3.95% | Maturity: 22/5/2023 | Rating: BB- | ISIN: USP1905CAD22 | Z-spread up by 43.6 bp to 259.6 bp, with the yield to worst at 2.7% and the bond now trading down to 101.4 cents on the dollar (1Y price range: 100.3-104.6).
• Issuer: Turkiye Vakiflar Bankasi TAO (Turkey) | Coupon: 5.50% | Maturity: 1/10/2026 | Rating: B+ | ISIN: XS2386558113 | Z-spread up by 41.1 bp to 559.2 bp, with the yield to worst at 6.6% and the bond now trading down to 94.9 cents on the dollar (1Y price range: 94.9-99.9).
• Issuer: StoneCo Ltd (George Town, Cayman Islands) | Coupon: 3.95% | Maturity: 16/6/2028 | Rating: BB- | ISIN: USG85158AA43 | Z-spread up by 40.8 bp to 401.0 bp, with the yield to worst at 5.2% and the bond now trading down to 91.9 cents on the dollar (1Y price range: 91.8-100.0).
• Issuer: Turkiye Sinai Kalkinma Bankasi AS (Istanbul, Turkey) | Coupon: 5.88% | Maturity: 14/1/2026 | Rating: B- | ISIN: XS2281369301 | Z-spread up by 38.8 bp to 546.7 bp, with the yield to worst at 6.2% and the bond now trading down to 97.8 cents on the dollar (1Y price range: 93.5-103.1).
• Issuer: Ultrapar International SA (Luxembourg, Luxembourg) | Coupon: 5.25% | Maturity: 6/6/2029 | Rating: BB+ | ISIN: USL9412AAB37 | Z-spread up by 37.5 bp to 331.6 bp, with the yield to worst at 4.6% and the bond now trading down to 103.3 cents on the dollar (1Y price range: 102.6-112.1).
• Issuer: Banco BTG Pactual SA (Cayman Islands Branch) (Cayman Islands) | Coupon: 5.50% | Maturity: 31/1/2023 | Rating: BB- | ISIN: US05971BAD10 | Z-spread up by 36.2 bp to 216.5 bp, with the yield to worst at 2.3% and the bond now trading down to 103.7 cents on the dollar (1Y price range: 103.5-107.3).
• Issuer: Klabin Austria GmbH (Wien, Austria) | Coupon: 3.20% | Maturity: 12/1/2031 | Rating: BB+ | ISIN: USA35155AE99 | Z-spread up by 35.7 bp to 280.7 bp, with the yield to worst at 4.3% and the bond now trading down to 91.0 cents on the dollar (1Y price range: 90.3-100.4).
• Issuer: Rede d'Or Finance SARL (Luxembourg, Luxembourg) | Coupon: 4.50% | Maturity: 22/1/2030 | Rating: BB | ISIN: USL7915TAA09 | Z-spread up by 35.2 bp to 330.4 bp, with the yield to worst at 4.7% and the bond now trading down to 97.8 cents on the dollar (1Y price range: 97.5-104.9).
• Issuer: Banco Safra SA (Cayman Islands Branch) (George Town, Cayman Islands) | Coupon: 4.13% | Maturity: 8/2/2023 | Rating: BB- | ISIN: US05964TAQ22 | Z-spread up by 35.2 bp to 194.3 bp, with the yield to worst at 2.1% and the bond now trading down to 102.3 cents on the dollar (1Y price range: 102.3-104.8).
• Issuer: Southeast Supply Header LLC (Houston, Texas (US)) | Coupon: 4.25% | Maturity: 15/6/2024 | Rating: BB- | ISIN: USU83854AB29 | Z-spread down by 39.5 bp to 267.5 bp, with the yield to worst at 3.0% and the bond now trading up to 101.8 cents on the dollar (1Y price range: 98.4-103.7).
• Issuer: Gemdale Ever Prosperity Investment Ltd (Hong Kong) | Coupon: 4.95% | Maturity: 12/8/2024 | Rating: BB- | ISIN: XS2357443410 | Z-spread down by 130.5 bp to 480.7 bp, with the yield to worst at 5.2% and the bond now trading up to 98.4 cents on the dollar (1Y price range: 93.3-102.0).

TOP BONDS MOVES IN THE PAST WEEK - EUR HY

• Issuer: Banca Monte dei Paschi di Siena SpA (Siena, Italy) | Coupon: 1.88% | Maturity: 9/1/2026 | Rating: CCC+ | ISIN: XS2270393379 | Z-spread up by 27.5 bp to 224.2 bp, with the yield to worst at 1.9% and the bond now trading down to 99.0 cents on the dollar (1Y price range: 93.7-102.9).
• Issuer: Deutsche Lufthansa AG (Cologne, Germany) | Coupon: 2.88% | Maturity: 11/2/2025 | Rating: BB- | ISIN: XS2296201424 | Z-spread up by 22.8 bp to 262.5 bp (CDS basis: -80.7bp), with the yield to worst at 2.2% and the bond now trading down to 101.3 cents on the dollar (1Y price range: 97.9-103.7).
• Issuer: International Consolidated Airlines Group SA (London, Spain) | Coupon: 2.75% | Maturity: 25/3/2025 | Rating: B+ | ISIN: XS2322423455 | Z-spread up by 19.3 bp to 317.4 bp, with the yield to worst at 2.8% and the bond now trading down to 99.2 cents on the dollar (1Y price range: 97.9-101.3).
• Issuer: Telecom Italia SpA (Rome, Italy) | Coupon: 5.25% | Maturity: 17/3/2055 | Rating: BB | ISIN: XS0214965963 | Z-spread up by 16.6 bp to 395.9 bp (CDS basis: -97.8bp), with the yield to worst at 4.0% and the bond now trading down to 115.7 cents on the dollar (1Y price range: 114.2-126.9).
• Issuer: Akropolis Group UAB (Vilnius, Lithuania) | Coupon: 2.88% | Maturity: 2/6/2026 | Rating: BB+ | ISIN: XS2346869097 | Z-spread down by 17.0 bp to 373.6 bp, with the yield to worst at 3.5% and the bond now trading up to 96.7 cents on the dollar (1Y price range: 96.2-99.4).
• Issuer: Atlantia SpA (Rome, Italy) | Coupon: 1.63% | Maturity: 3/2/2025 | Rating: BB- | ISIN: XS1558491855 | Z-spread down by 19.8 bp to 110.3 bp (CDS basis: -25.9bp), with the yield to worst at 0.7% and the bond now trading up to 102.3 cents on the dollar (1Y price range: 98.8-103.0).
• Issuer: SoftBank Group Corp (Minato-Ku, Japan) | Coupon: 2.88% | Maturity: 6/1/2027 | Rating: BB+ | ISIN: XS2361254597 | Z-spread down by 22.0 bp to 367.6 bp, with the yield to worst at 3.5% and the bond now trading up to 96.5 cents on the dollar (1Y price range: 94.4-100.0).
• Issuer: Adler Group SA (Senningerberg, Luxembourg) | Coupon: 1.88% | Maturity: 14/1/2026 | Rating: BB- | ISIN: XS2283224231 | Z-spread down by 34.8 bp to 534.4 bp, with the yield to worst at 5.1% and the bond now trading up to 87.6 cents on the dollar (1Y price range: 77.0-99.6).

SELECTED RECENT USD BOND ISSUES

• Ally Financial Inc (Financial - Other | Detroit, Michigan, United States | Rating: BBB-): US$750m Senior Note (US02005NBP42), fixed rate (2.20% coupon) maturing on 2 November 2028, priced at 98.64 (original spread of 95 bp), callable (7nc7)
• Federal Farm Credit Banks Funding Corp (Agency | Jersey City, United States | Rating: AA+): US$127m Bond (US3133ENCS72), fixed rate (2.20% coupon) maturing on 1 November 2033, priced at 100.00 (original spread of 208 bp), callable (12nc1)
• Federal Farm Credit Banks Funding Corp (Agency | Jersey City, United States | Rating: AA+): US$495m Bond (US3133ENCY41), floating rate (SOFR + 4.0 bp) maturing on 2 November 2023, priced at 100.00, callable (2nc1)
• Federal Farm Credit Banks Funding Corp (Agency | Jersey City, United States | Rating: AA+): US$110m Bond (US3133ENDA55), fixed rate (1.74% coupon) maturing on 1 November 2028, priced at 100.00 (original spread of 164 bp), callable (7nc3m)
• Kinder Morgan Inc (Gas Utility - Pipelines | Houston, Texas, United States | Rating: BBB): US$500m Senior Note (US49456BAU52), fixed rate (1.75% coupon) maturing on 15 November 2026, priced at 99.83 (original spread of 60 bp), callable (5nc5)
• Roblox Corp (Information/Data Technology | San Mateo, California, United States | Rating: BB): US$1,000m Senior Note (US771049AA15), fixed rate (3.88% coupon) maturing on 1 May 2030, priced at 100.00 (original spread of 234 bp), callable (9nc3)
• Dah Sing Bank Ltd (Banking | Hong Kong | Rating: BBB+): US$300m Subordinated Note (XS2393542548), fixed rate (3.00% coupon) maturing on 2 November 2031, priced at 99.39 (original spread of 195 bp), callable (10nc5)
• EI Sukuk Company Ltd (Financial - Other | George Town, United Arab Emirates | Rating: NR): US$500m Islamic Sukuk (Hybrid) (XS2392596180), fixed rate (2.08% coupon) maturing on 2 November 2026, priced at 100.00 (original spread of 80 bp), non callable
• Erste Abwicklungsanstalt (Agency | Dusseldorf, Germany | Rating: AA): US$1,000m Senior Note (XS2403919702), fixed rate (0.88% coupon) maturing on 30 October 2024, priced at 99.89 (original spread of 14 bp), non callable
• Gray Escrow II Inc (Financial - Other | Rating: BB-): US$1,300m Senior Note (US389286AA34), fixed rate (5.38% coupon) maturing on 15 November 2031, priced at 100.00 (original spread of 376 bp), callable (10nc5)
• ICBCIL Finance Co Ltd (Financial - Other | China (Mainland) | Rating: A): US$600m Senior Note (XS2393949065), fixed rate (1.63% coupon) maturing on 2 November 2024, priced at 99.92 (original spread of 88 bp), non callable
• Royal Bank of Canada (Banking | Toronto, Ontario, Canada | Rating: A): US$1,500m Senior Note (US78016EYH43), fixed rate (2.30% coupon) maturing on 3 November 2031, priced at 99.88 (original spread of 70 bp), with a make whole call

SELECTED RECENT EUR BOND ISSUES

• Almaviva The Italian Innovation Company SpA (Information/Data Technology | Rome, Roma, Italy | Rating: B+): €350m Note (XS2403514552), fixed rate (4.88% coupon) maturing on 30 October 2026, priced at 100.00 (original spread of 531 bp), callable (5nc2)
• Canadian Imperial Bank of Commerce (Banking | Toronto, Canada | Rating: A+): €250m Covered Bond (Other) (XS2404257854), fixed rate (0.01% coupon) maturing on 7 October 2026, priced at 100.09 (original spread of 45 bp), non callable
• Hamburg Commercial Bank AG (Banking | Hamburg, Germany | Rating: BBB): €500m Hypothekenpfandbrief (Covered Bond) (DE000HCB0BC0), fixed rate (0.10% coupon) maturing on 2 November 2028, priced at 99.89 (original spread of 46 bp), non callable
• Hessen, State of (Official and Muni | Wiesbaden, Germany | Rating: AA+): €500m Inhaberschuldverschreibung (DE000A1RQD92), fixed rate (0.13% coupon) maturing on 10 October 2031, priced at 99.51 (original spread of 30 bp), non callable
• Procter & Gamble Co (Consumer Products | Cincinnati, United States | Rating: AA-): €600m Senior Note (XS2404214020), fixed rate (0.90% coupon) maturing on 4 November 2041, priced at 99.51 (original spread of 91 bp), with a make whole call
• Procter & Gamble Co (Consumer Products | Cincinnati, United States | Rating: AA-): €500m Senior Note (XS2404213485), fixed rate (0.35% coupon) maturing on 5 May 2030, priced at 99.87 (original spread of 60 bp), with a make whole call
• Skandinaviska Enskilda Banken AB (Banking | Stockholm, Sweden | Rating: A+): €500m Subordinated Note (XS2404247384), fixed rate (0.75% coupon) maturing on 3 November 2031, priced at 99.60 (original spread of 129 bp), callable (10nc5)
• Swedbank AB (Banking | Sundbyberg, Sweden | Rating: A+): €1,000m Note (XS2404027935), fixed rate (0.25% coupon) maturing on 2 November 2026, priced at 99.99 (original spread of 71 bp), non callable