Credit Agricole Launches S$ Tier-2

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May 14, 2026

Credit Ratings
Macro News

US Treasury yields stayed broadly stable on Wednesday. US PPI Final Demand rose by 6.0% YoY in April, much higher than expectations of 4.8% and the prior month’s 4.3% print. The Core PPI rose by 5.2%, higher than expectations of 4.3% and the prior month’s 4.0% print. Separately, the US Treasury’s 30Y note auction saw weak demand, with a bid-to-cover ratio of 2.30x (softer than the prior auction’s 2.39x). The US Senate confirmed Kevin Warsh as the next Fed Chairman with a 54-45 vote.

Looking at US equity markets, the S&P and Nasdaq ended higher by 0.6% and 1.2% respectively. US IG CDS spreads were 0.3bp tighter and HY CDS spreads were 1.6bp tighter. European equity markets ended higher too. The iTraxx Main CDS spreads were 1.1bp tighter while the Crossover spreads tightened by 5.4bp. Asian equity markets have opened higher this morning. Asia ex-Japan CDS spreads were 0.3bp tighter.

New Bond Issues

Nan Fung Treasury $ 10Y at T+175bp area
Credit Agricole S$ 12NC7 Tier-2 at 3.6% area
Hanwha Q Cells $ 3Y at T+75bp area

Egypt raised $1bn via an 8Y social bond at a yield of 7.625%, 37.5bp inside initial guidance of 8% area. The senior unsecured note is rated B/B (S&P/Fitch), and received orders of over $3.9bn, 3.9x issue size. Proceeds will be used to finance or refinance one or more eligible social projects. The new bond is priced with a new issue premium of 15.5bp over its existing 7.3% bond due September 2033 that currently yields 7.47%.

Rolls-Royce raised €1bn via a dual-trancher. It raised €500mn via a 5Y bond at a yield of 3.465%, 38bp inside initial guidance of T+90bp area. It also raised €500mn via a 10Y bond at a yield of 3.944%, 38bp inside initial guidance of T+120bp area. The senior unsecured notes are rated A3/A- (Moody’s/Fitch). Proceeds will be used for general corporate purposes.

CBA raised €1.25bn via a 11NC10 Tier-2 bond at a yield of 4.454%, 27bp inside initial guidance of MS+160bp area. The subordinated note is rated A2/A-/A. Proceeds will be used for general corporate purposes.

Wells Fargo raised $6bn via a three-trancher. It raised:

$2.25bn via a 3NC2 bond at a yield of 4.577%, 25bp inside initial guidance of T+85bp area
$500mn via a 3NC2 FRN at SOFR+72bp vs. initial guidance of SOFR equivalent area
$3.25bn via a 6NC5 bond at a yield of 4.844%, 27bp inside initial guidance of T+100bp area

The senior unsecured notes are rated A1/BBB+/A+. Proceeds will be used for general corporate purposes.

Trans-Oil Group raised $300mn via a 3NC2 bond at a yield of 12.75% vs. initial guidance of high-12% area. The senior unsecured note is rated B/B+ (S&P/Fitch). The note is guaranteed by certain material subsidiaries representing ~82.2% of the group’s 2026 adjusted EBITDA and 86.6% of its total net assets. The note has a change of control put at 100. Proceeds will be used for financing the purchase of up to $200mn in principal of its 2029s under its concurrent tender offer, and to reduce trade finance debt.

New Bonds Pipeline

Republic of Congo offshore bond

Rating Changes

Fitch Upgrades Pampa to ‘B+’; Outlook Stable
Fitch Upgrades Wayfair to ‘BB-‘; Outlook Stable
Petroleos Mexicanos, Comision Federal de Electricidad Outlooks Revised To Negative On Same Action On Sovereign
Omniyat Holdings Ltd Outlook Revised To Negative On Weaker Market Prospects; ‘BB-‘ Ratings Affirmed

Term of the Day: SOFR

Secured Overnight Financing Rate (SOFR) is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities. SOFR is calculated as a volume-weighted median of three rates – tri-party repo data collected from BNY Mellon, General Collateral Financing (GCF) Repo transaction data and data on bilateral Treasury repo transactions cleared through FICC’s DVP service, which are obtained from DTCC Solutions LLC. SOFR was selected as the representative rate for use in USD derivatives, and was suggested as an alternative to LIBOR.

Talking Heads

On Credit Income Beats Chasing Spreads in Volatility – James Turner, BlackRock

“The returns from fixed income — because of where yields are — are at the highest they’ve been on a sustained basis for the best part of two decades and giving you attractive compounding returns… It’s a much more normal environment which is more akin to how fixed income should be”

On Favoring Holding Rates Steady for ‘Some Time’ – Susan Collins, Boston Fed President

“More than five years of above-target inflation has reduced my patience for ‘looking through’ another supply shock… The longer and more disruptive the conflict in the Middle East, the larger the inflationary impact”

On Stock Rally Can Cope With Rising Bond Yields – Max Kettner, HSBC Holdings

V-shaped recovery in earnings has seen company profits “inflect higher from a high base”… reporting season has been “crazy, just absolutely crazy”… strength in equities is “an everywhere story except for Europe”

Top Gainers and Losers- 14-May-26*