QUICK SUMMARY

• S&P 500 Bond Index was up 0.57% today, with investment grade up 0.59% and high yield up 0.46% (YTD total return: +0.12%)
• The iBoxx USD Liquid Investment Grade Total Return Index was up 0.748% today (Month-to-date: 1.12%; Year-to-date: -0.33%)
• The iBoxx USD Liquid High Yield Total Return Index was up 0.392% today (Month-to-date: 0.63%; Year-to-date: 4.05%)
• ICE BofA US Corporate Index (Investment Grade) spread to worst unchanged at 87.0 bp (YTD change: -11.0 bp)
• ICE BofA US High Yield Index spread to worst down -7.0 bp, now at 328.0 bp (YTD change: -62.0 bp)
• S&P/LSTA U.S. Leveraged Loan 100 Index up 0.05% today (YTD total return: +3.2%)

US CORPORATE OPTION-ADJUSTED SPREAD (OAS) BY RATING

• AAA down by -1 bp at 47 bp
• AA unchanged at 56 bp
• A unchanged at 72 bp
• BBB down by -1 bp at 111 bp
• BB down by -4 bp at 216 bp
• B down by -11 bp at 357 bp
• CCC down by -3 bp at 652 bp

CDS INDICES (mid-spreads)

• Markit CDX.NA.IG 5Y down 0.8 bp, now at 89bp (YTD change: -1.5bp)
• Markit CDX.NA.HY 5Y down 5.5 bp, now at 287bp (YTD change: -5.8bp)
• Markit iTRAXX Europe down 1.0 bp, now at 48bp (YTD change: 0.0bp)
• Markit iTRAXX Japan down 0.3 bp, now at 47bp (YTD change: -4.3bp)
• Markit iTRAXX Asia Ex-Japan up 5.1 bp, now at 86bp (YTD change: +28.1bp)

UPDATED HISTORICAL HIGH YIELD DEFAULT RATES

TOP BONDS MOVES IN THE PAST WEEK - USD HY

• Issuer: YPF SA (Buenos Aires, Argentina) | Coupon: 6.95% | Maturity: 21/7/2027 | Rating: CCC | ISIN: USP989MJBL47 | Z-spread up by 127.0 bp to 1,480.2 bp, with the yield to worst at 15.2% and the bond now trading down to 68.8 cents on the dollar (1Y price range: 56.6-76.3).
• Issuer: Vedanta Resources Finance II PLC (London, United Kingdom) | Coupon: 8.95% | Maturity: 11/3/2025 | Rating: B- | ISIN: USG9T27HAD62 | Z-spread up by 87.6 bp to 880.0 bp, with the yield to worst at 9.3% and the bond now trading down to 97.9 cents on the dollar (1Y price range: 93.5-102.4).
• Issuer: StoneCo Ltd (George Town, Cayman Islands) | Coupon: 3.95% | Maturity: 16/6/2028 | Rating: BB- | ISIN: USG85158AA43 | Z-spread up by 78.8 bp to 456.3 bp, with the yield to worst at 5.6% and the bond now trading down to 89.9 cents on the dollar (1Y price range: 89.0-100.0).
• Issuer: Gemdale Ever Prosperity Investment Ltd (Hong Kong) | Coupon: 4.95% | Maturity: 12/8/2024 | Rating: BB- | ISIN: XS2357443410 | Z-spread up by 71.6 bp to 757.3 bp, with the yield to worst at 7.8% and the bond now trading down to 92.1 cents on the dollar (1Y price range: 93.3-102.0).
• Issuer: JSM Global SARL (Luxembourg, Luxembourg) | Coupon: 4.75% | Maturity: 20/10/2030 | Rating: BB | ISIN: USL5788AAA99 | Z-spread up by 67.7 bp to 418.9 bp, with the yield to worst at 5.4% and the bond now trading down to 94.3 cents on the dollar (1Y price range: 94.1-107.7).
• Issuer: Kondor Finance PLC (London, United Kingdom) | Coupon: 7.63% | Maturity: 8/11/2026 | Rating: B | ISIN: XS2077601610 | Z-spread up by 59.8 bp to 740.9 bp, with the yield to worst at 8.1% and the bond now trading down to 97.1 cents on the dollar (1Y price range: 96.8-105.9).
• Issuer: WeWork Companies Inc (New York City, New York (US)) | Coupon: 7.88% | Maturity: 1/5/2025 | Rating: CCC- | ISIN: USU96217AA99 | Z-spread up by 51.4 bp to 702.3 bp, with the yield to worst at 7.5% and the bond now trading down to 100.3 cents on the dollar (1Y price range: 67.5-104.8).
• Issuer: Ultrapar International SA (Luxembourg, Luxembourg) | Coupon: 5.25% | Maturity: 6/10/2026 | Rating: BB+ | ISIN: USL9412AAA53 | Z-spread up by 47.3 bp to 276.4 bp, with the yield to worst at 3.6% and the bond now trading down to 106.3 cents on the dollar (1Y price range: 106.0-112.3).
• Issuer: JSW Steel Ltd (Mumbai, India) | Coupon: 3.95% | Maturity: 5/4/2027 | Rating: BB- | ISIN: USY44680RV38 | Z-spread up by 45.2 bp to 308.2 bp, with the yield to worst at 4.1% and the bond now trading down to 98.5 cents on the dollar (1Y price range: 94.6-100.8).
• Issuer: Southeast Supply Header LLC (Houston, Texas (US)) | Coupon: 4.25% | Maturity: 15/6/2024 | Rating: BB- | ISIN: USU83854AB29 | Z-spread down by 46.7 bp to 178.1 bp, with the yield to worst at 2.0% and the bond now trading up to 104.1 cents on the dollar (1Y price range: 98.4-104.2).
• Issuer: Turkiye Cumhuriyeti Ziraat Bankasi AS (Ankara, Turkey) | Coupon: 5.38% | Maturity: 2/3/2026 | Rating: B | ISIN: XS2274089288 | Z-spread down by 47.5 bp to 501.9 bp, with the yield to worst at 5.7% and the bond now trading up to 97.8 cents on the dollar (1Y price range: 91.8-102.0).
• Issuer: Akbank TAS (Turkey) | Coupon: 6.80% | Maturity: 6/2/2026 | Rating: B | ISIN: XS2131335270 | Z-spread down by 54.6 bp to 473.9 bp (CDS basis: 28.9bp), with the yield to worst at 5.6% and the bond now trading up to 104.1 cents on the dollar (1Y price range: 98.1-108.6).
• Issuer: Ecobank Transnational Incorporated SA (LOME, Togo) | Coupon: 9.50% | Maturity: 18/4/2024 | Rating: B- | ISIN: XS1826862556 | Z-spread down by 82.9 bp to 521.6 bp, with the yield to worst at 5.4% and the bond now trading up to 108.3 cents on the dollar (1Y price range: 106.5-109.8).

TOP BONDS MOVES IN THE PAST WEEK - EUR HY

• Issuer: Teva Pharmaceutical Finance Netherlands II BV (Amsterdam, Netherlands) | Coupon: 1.63% | Maturity: 15/10/2028 | Rating: BB- | ISIN: XS1439749364 | Z-spread up by 61.0 bp to 368.4 bp, with the yield to worst at 3.5% and the bond now trading down to 88.0 cents on the dollar (1Y price range: 87.1-92.6).
• 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 58.7 bp to 233.3 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: Telecom Italia Finance SA (Luxembourg, Luxembourg) | Coupon: 7.75% | Maturity: 24/1/2033 | Rating: BB | ISIN: XS0161100515 | Z-spread up by 42.9 bp to 305.7 bp (CDS basis: -31.1bp), with the yield to worst at 3.0% and the bond now trading down to 142.9 cents on the dollar (1Y price range: 139.1-149.5).
• Issuer: Nemak SAB de CV (San Pedro Garza Garcia, Mexico) | Coupon: 2.25% | Maturity: 20/7/2028 | Rating: BB+ | ISIN: XS2362994068 | Z-spread up by 37.5 bp to 307.0 bp, with the yield to worst at 2.8% and the bond now trading down to 95.5 cents on the dollar (1Y price range: 94.8-100.8).
• Issuer: Saipem Finance International BV (Amsterdam, Netherlands) | Coupon: 3.13% | Maturity: 31/3/2028 | Rating: BB- | ISIN: XS2325696628 | Z-spread up by 25.9 bp to 324.6 bp (CDS basis: 61.1bp), with the yield to worst at 3.0% and the bond now trading down to 99.8 cents on the dollar (1Y price range: 98.5-102.9).
• Issuer: Ford Motor Credit Company LLC (Dearborn, Michigan (US)) | Coupon: 2.39% | Maturity: 17/2/2026 | Rating: BB | ISIN: XS2013574384 | Z-spread down by 39.9 bp to 160.2 bp (CDS basis: -31.8bp), with the yield to worst at 1.3% and the bond now trading up to 104.1 cents on the dollar (1Y price range: 96.7-105.5).
• Issuer: Adler Group SA (Senningerberg, Luxembourg) | Coupon: 3.25% | Maturity: 5/8/2025 | Rating: BB- | ISIN: XS2010029663 | Z-spread down by 94.1 bp to 507.8 bp, with the yield to worst at 4.7% and the bond now trading up to 94.7 cents on the dollar (1Y price range: 81.0-105.4).
• Issuer: TechnipFMC PLC (London, United Kingdom) | Coupon: 4.50% | Maturity: 30/6/2025 | Rating: BB | ISIN: XS2197326437 | Z-spread down by 118.0 bp to 199.9 bp (CDS basis: 10.9bp), with the yield to worst at 1.5% and the bond now trading up to 109.0 cents on the dollar (1Y price range: 103.4-109.0).

SELECTED RECENT EUR BOND ISSUES

• Deutsche Apotheker und Aerztebank eG (Banking | Dusseldorf, Nordrhein-Westfalen, Germany | Rating: A+): €216m Note (XS2407542666), floating rate (EU03MLIB + 60.0 bp) maturing on 12 November 2024, priced at 100.52, non callable
• Gamma Bondco SARL (Financial - Other | Luxembourg | Rating: NR): €400m Note (XS2407361109), fixed rate (8.13% coupon) maturing on 15 November 2026, priced at 100.00 (original spread of 868 bp), callable (5nc2)
• Hamburg Commercial Bank AG (Banking | Hamburg, Hamburg, Germany | Rating: BBB): €250m Schiffspfandbrief (Covered Bond) (DE000HCB0BD8), floating rate (EU03MLIB + 33.0 bp) maturing on 11 November 2025, priced at 100.00, non callable
• VIA Outlets BV (Retail Stores - Other | Amsterdam, Noord-Holland, Netherlands | Rating: NR): €600m Senior Note (XS2407027031), fixed rate (1.75% coupon) maturing on 15 November 2028, priced at 99.38 (original spread of 230 bp), callable (7nc7)

NEW LOANS

• Spectacle Gary Holding (B), signed a US$ 415m Term Loan B, to be used for general corporate purposes. It matures on 11/18/28.
• Driven Brands Inc, signed a US$ 500m Term Loan B, to be used for general corporate purposes. It matures on 11/17/28 and initial pricing is set at LIBOR +325bps
• Brooks Automation Inc (BB-), signed a US$ 205m Term Loan, to be used for leveraged buyout. It matures on 11/22/29.
• Brooks Automation Inc (BB-), signed a US$ 825m Term Loan B, to be used for leveraged buyout. It matures on 11/22/28.
• S&S Holdings LLC (B), signed a US$ 150m Term Loan B, to be used for acquisition financing. It matures on 03/11/28 and initial pricing is set at LIBOR +500bps
• TRC Cos Inc (B), signed a US$ 210m Term Loan and a $ 635m Term Loan B.

NEW ISSUES IN SECURITIZED CREDIT

• Morgan Stanley Capital I Trust 2021-Plza issued a fixed-rate CMBS in 3 tranches, for a total of US$ 272 m. Highest-rated tranche offering a yield to maturity of 2.43%, and the lowest-rated tranche a yield to maturity of 2.70%. Bookrunners: Morgan Stanley International Ltd
• STWD Trust 2021-LIH issued a floating-rate CMBS in 9 tranches, for a total of US$ 378 m. Highest-rated tranche offering a spread over the floating rate of 86bp, and the lowest-rated tranche a spread of 570bp. Bookrunners: Goldman Sachs & Co, Barclays Capital Group