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Bond Market News
Bank of East Asia, MGM China Launch $ Bonds; GM Financial, Barclays, Ford and others Price Bonds
May 6, 2026
US Treasury yields were broadly stable across the curve. The ISM Services PMI came in at 53.6, marginally lower than expectations of 53.7, with the New Orders subcomponent easing sharply to 53.5 from 60.6. On the geopolitical front, US President Donald Trump said that the Strait of Hormuz operation has been paused amid talks with Iran. Brent crude eased by ~5%, to trade at over $108/bbl.
Looking at US equity markets, the S&P and Nasdaq ended higher by 0.8-1%. US IG CDS spreads were 0.8bp wider and HY CDS spreads were 4.1bp tighter. European equity indices ended higher while the FTSE100 ended 1.4% lower. The iTraxx Main CDS spreads widened by 0.9bp and the Crossover spreads widened by 2.8bp. Asian equity markets have opened in the green this morning. Asia ex-Japan CDS spreads were 1bp tighter.
New Bond Issues
- Bank of East Asia $ 6NC5 at T+175bp area
- MGM China $750mn 7NC3 at 6.5% area
GM Financial raised ~$1.11bn via a two-part deal. It raised £300mn ($407mn) via a short 3Y bond at a yield of 5.374%, 15bp inside initial guidance of UKT+105bp area. It also raised €600mn (~$703mn) via a 6Y bond at a yield of 4.001%, 35bp inside initial guidance of MS+140bp area. The senior unsecured notes are rated Baa2/BBB/BBB. Proceeds will be used for general corporate purposes.
Barclays raised €1.75bn via a two-trancher. It raised €500mn via a 4NC3 bond at a yield of 3.58%, 30bp inside initial guidance of MS+100bp area. It also raised €1.25bn via a 11.5NC10.5 bond at a yield of 4.424%, 30bp inside initial guidance of MS+160bp area. The senior unsecured notes are rated Baa1/BBB+/A. Proceeds will be used for general corporate purposes and potentially to further strengthen the capital base of the group and/or its subsidiaries.
Ford Motor Credit raised €750mn via a 5.2Y bond at a yield of 4.483%, ~27.5bp inside initial guidance of MS+180/185bp area. The senior unsecured note is rated Ba1/BBB-/BBB-. Proceeds will be used for general corporate purposes.
Japfa raised $300mn via a 5NC2 bond at a yield of 8.25%, 25bp inside initial guidance of 8.5% area. The senior secured note is rated B1/B+ (Moody’s/Fitch). Proceeds will be used to refinance debt, fund its Interest Service Reserve Account (ISRA), for the payment of transaction expenses and for general corporate purposes.
ING Bank raised €3.25bn via a three-trancher. It raised:
- €1.25bn via a 2Y FRN at 3m Euribor + 38bp, ~24.5bp inside initial guidance of 3m Euribor + 60/65bp area
- €1bn via a 3Y bond at a yield of 3.281%, 25bp inside initial guidance of MS+65bp area
- €1bn via a 7Y bond at a yield of 3.691%, 25bp inside initial guidance of MS+95bp area
The senior unsecured notes are rated A2/A+/AA-. An amount equivalent to the net proceeds will be used to finance and/or refinance, in whole or in part, a portfolio of green loans under its green funding framework.
Alphabet raised €9bn via a six-trancher.
The senior unsecured notes are rated Aa2/AA+, and received orders of over €18.3bn, 2x issue size. Net proceeds together with the proceeds from any concurrent notes offering will be used for general corporate purposes, including the repayment of outstanding debt.
Rating Changes
- Moody’s Ratings upgrades Vedanta Resources’ CFR and Senior Unsecured Rating to Ba3; outlook positive
- Fitch Upgrades Argentina to ‘B-‘; Outlook Stable
- Fitch Upgrades Micron Technology to ‘BBB+’; Outlook Stable
- Moody’s Ratings downgrades AEGEA’s ratings; outlook remains on review for downgrade
- Fitch Revises Goldman Sachs’ Outlook to Positive; Affirms Long-Term IDR at ‘A’
- Starbucks Corp. Outlook Revised To Stable From Negative On Deleveraging And Improving Results; ‘BBB+’ Ratings Affirmed
New Bonds Pipeline
- City of Buenos Aires launches investor calls
- NAB A$ 5Y FRN and/or 15NC10 note
Term of the Day: Samurai Bonds
Samurai bonds are yen-denominated bonds issued by foreign entities in Japan. These bonds, which are subject to bond market regulations in Japan, are issued by foreign countries and corporations to attract Japanese investors. Another reason to issue Samurai bonds is to capitalize on lower interest rates in Japan compared to the issuer’s local market. Egypt plans to issue a $500mn Samurai bond.
Talking Heads
On US Can Lower Debt Cost by Going Bespoke – BofA
The department “has looked for ideas to help contain the long end… A window could allow Treasury to keep long-end sizes stable for an even longer period and meet demand on a reverse inquiry basis”
“If we see such second-round effects, we’ll act and raise rates to prevent inflation becoming broad and sustainable… For the moment, we don’t have sufficient signs of this propagation”
On Wall Street Trusting Bots With Biggest Corporate Bond Trades
Adam Jones, RBC Capital Management
“The voice trading business is really fading away… algo teams are getting bigger. They’re adding quant power and technology”
Mark Clegg, Allspring Global Investments
“For the first time in a long while, the buy side has the advantage in execution, and we’re leaning into it”
Zornitsa Todorova, Barclays
“It’s the natural evolution of the market, but I don’t necessarily see it, to be honest, as bad news for voice traders”
Top Gainers and Losers- 06-May-26*
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