Credit

US Corporate Bonds Rose To End The Week, Mostly Helped By The Move Lower In Rates

Total volumes of issuance for US corporate bonds this week (IFR Markets data): US$400m in a single tranche for HY, US$29.0bn in 40 Tranches for IG

Published ET

Leveraged Loans Did Better Than High Yield Bonds During The Recent Downturn | Source: Credit Suisse

Leveraged Loans Did Better Than High Yield Bonds During The Recent Downturn | Source: Credit Suisse

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QUICK SUMMARY

  • S&P 500 Bond Index was up 0.49% today, with investment grade up 0.52% and high yield up 0.28% (YTD total return: -0.22%)
  • ICE BofA US Corporate Index (Investment Grade) spread to worst unchanged at 101.0 bp (YTD change: +3.0 bp)
  • ICE BofA US High Yield Index spread to worst up 2.0 bp, now at 376.0 bp (YTD change: -14.0 bp)
  • S&P/LSTA U.S. Leveraged Loan 100 Index up 0.11% today (YTD total return: +2.8%)

US CORPORATE OPTION-ADJUSTED SPREAD (OAS) BY RATING

  • AAA down by -3 bp at 58 bp
  • AA unchanged at 67 bp
  • A down by -1 bp at 83 bp
  • BBB down by -1 bp at 127 bp
  • BB up by 2 bp at 253 bp
  • B up by 2 bp at 403 bp
  • CCC down by -4 bp at 711 bp

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

OAS Changes By Rating This Week | Sources: phipost.com, FactSet dataICE BofAML US Corporate IG & HY Spreads | Sources: phipost.com, Refinitiv data

CDS INDICES (mid-spreads)

  • Markit CDX.NA.IG 5Y up 1.0 bp, now at 98bp (YTD change: +7.0bp)
  • Markit CDX.NA.HY 5Y up 4.2 bp, now at 329bp (YTD change: +35.9bp)
  • Markit iTRAXX Europe up 0.3 bp, now at 58bp (YTD change: +9.7bp)
  • Markit iTRAXX Japan down 0.6 bp, now at 51bp (YTD change: -0.3bp)
  • Markit iTRAXX Asia Ex-Japan down 1.2 bp, now at 93bp (YTD change: +35.0bp)
CDX.NA IG & HY Credit Indices Mid Spreads | Sources: phipost.com, Refinitiv dataiTRAXX Credit Indices Mid Spreads | Sources: phipost.com, Refinitiv data

USD CDS SINGLE NAMES - LARGEST MOVES IN THE PAST WEEK

  • RR Donnelley & Sons Co (Country: US; rated: B2): down 33.7 bp to 132.8bp (1Y range: 133-712bp)
  • Brazil, Federative Republic of (Government) (Country: BR; rated: B): down 19.7 bp to 238.8bp (1Y range: 141-263bp)
  • Petroleo Brasileiro SA Petrobras (Country: BR; rated: Ba1): down 18.4 bp to 288.1bp (1Y range: 175-303bp)
  • Macy's Inc (Country: US; rated: Ba2): up 17.2 bp to 232.5bp (1Y range: 181-651bp)
  • Genworth Holdings Inc (Country: US; rated: B2): up 18.7 bp to 378.7bp (1Y range: 335-681bp)
  • iStar Inc (Country: US; rated: BBB-): up 19.2 bp to 309.0bp (1Y range: 199-324bp)
  • Carnival Corp (Country: US; rated: LGD5 - 72%): up 20.6 bp to 537.7bp (1Y range: 291-572bp)
  • Bombardier Inc (Country: CA; rated: Caa1): up 21.7 bp to 464.2bp (1Y range: 395-1,912bp)
  • American Airlines Group Inc (Country: US; rated: B2): up 26.4 bp to 848.0bp (1Y range: 596-1,355bp)
  • Turkey, Republic of (Government) (Country: TR; rated: BB): up 38.0 bp to 542.4bp (1Y range: 283-542bp)
  • Royal Caribbean Cruises Ltd (Country: US; rated: LGD4 - 59%): up 40.6 bp to 469.3bp (1Y range: 299-726bp)
  • Staples Inc (Country: US; rated: B2): up 73.2 bp to 1,209.7bp (1Y range: 652-1,210bp)
  • Ghana, Republic of (Government) (Country: GH; rated: B): up 81.1 bp to 840.0bp (1Y range: 646-840bp)
  • Transocean Inc (Country: KY; rated: Caa3): up 411.7 bp to 2,726.3bp (1Y range: 941-3,803bp)
  • Talen Energy Supply LLC (Country: US; rated: B3): up 1280.3 bp to 4,007.7bp (1Y range: 875-5,047bp)

EURO CDS SINGLE NAMES - LARGEST MOVES IN THE PAST WEEK

  • Novafives SAS (Country: FR; rated: Caa1): down 74.5 bp to 692.9bp (1Y range: 660-976bp)
  • Casino Guichard Perrachon SA (Country: FR; rated: WR): down 57.5 bp to 736.7bp (1Y range: 464-779bp)
  • Unilabs SubHolding AB (publ) (Country: SE; rated: B2): down 41.5 bp to 152.0bp (1Y range: -152bp)
  • TUI AG (Country: DE; rated: B3-PD): down 37.6 bp to 799.6bp (1Y range: 607-946bp)
  • Boparan Finance PLC (Country: GB; rated: WR): down 30.4 bp to 1,343.7bp (1Y range: 528-1,564bp)
  • Premier Foods Finance PLC (Country: GB; rated: B1): down 21.4 bp to 237.2bp (1Y range: 154-273bp)
  • Ladbrokes Coral Group Ltd (Country: GB; rated: WR): down 19.4 bp to 198.4bp (1Y range: 107-227bp)
  • Telecom Italia SpA (Country: IT; rated: Ba2): down 19.3 bp to 251.6bp (1Y range: 149-270bp)
  • Iceland Bondco PLC (Country: GB; rated: LGD3 - 46%): down 19.0 bp to 642.6bp (1Y range: 358-661bp)
  • Deutsche Lufthansa AG (Country: DE; rated: Ba2): down 16.9 bp to 301.2bp (1Y range: 209-348bp)
  • Cable & Wireless Ltd (Country: GB; rated: WR): down 9.0 bp to 42.3bp (1Y range: 42-143bp)
  • Air France KLM SA (Country: FR; rated: B-): down 7.4 bp to 462.5bp (1Y range: 386-699bp)
  • Hammerson PLC (Country: GB; rated: Baa3): up 10.3 bp to 200.4bp (1Y range: 166-352bp)
  • Banca Monte dei Paschi di Siena SpA (Country: IT; rated: NP): up 11.4 bp to 256.9bp (1Y range: 145-272bp)
  • thyssenkrupp AG (Country: DE; rated: B1): up 14.2 bp to 226.9bp (1Y range: 205-300bp)