We use cookies to improve your experience. By using BondbloX, you agree to our use of cookies.
Bond Market News
HSBC, DB, SocGen, Studio City and Others Price Bonds
May 8, 2026
US Treasury yields rose by ~4bp across the curve. Brent crude prices inched higher amid reports of the US and Iran trading strikes. However, US President Donald Trump said that the ceasefire is still in effect. Separately, Minneapolis Fed President Neel Kashkari and Cleveland Fed President Beth Hammack noted that their dissents in the April FOMC were primarily due to the Fed’s statement signaling that the next move on interest rates was likely a down move.
Looking at US equity markets, the S&P and Nasdaq ended lower by 0.4% and 0.1% respectively. US IG CDS spreads were 0.8bp wider and HY CDS spreads were 6.2bp wider. European equity markets ended lower. The iTraxx Main CDS spreads widened by 0.8bp and the Crossover spreads widened by 3.7bp. Asian equity markets have opened lower this morning. Asia ex-Japan CDS spreads were 1.3bp tighter.
New Bond Issues
HSBC raised $4.5bn via a two-part deal. It raised $2.25bn via a 4NC3 bond at a yield of 4.711%, 32bp inside initial guidance of T+110bp area. It also raised $2.25bn via an 8NC7 bond at a yield of 5.208%, 30bp inside initial guidance of T+130bp area. The senior unsecured notes are rated A3/A-/A+. Proceeds will be used for general corporate purposes.
Studio City raised $300mn via a 5NC2 bond at a yield of 6.125%, 37.5bp inside initial guidance of 6.50% area. The senior secured note is rated Ba3/B+. Proceeds, along with cash on hand will be used to repurchase its bonds due 2027s under its concurrent tender offer.
PIF raised $7bn via a three-trancher. It raised:
- $2.75bn via a 3Y at a yield of 4.892%, 35bp inside initial guidance of T+130bp area
- $1.75bn via a 7Y bond at a yield of 5.269%, 30bp inside initial guidance of T+135bp area
- $2.5bn via a 30Y bond at a yield of 6.333%, 35bp inside initial guidance of MS+170bp area
The senior unsecured notes are rated Aa3/A+ (Moody’s/Fitch). Gaci First Investment Co is the issuer. Proceeds will be used for general corporate purposes.
Deutsche Bank raised €1.25bn via a PerpNC10 AT1 bond at a yield of 6.75%, 50bp inside initial guidance of 7.25% area. The junior subordinated note is rated Ba2/BB/BB+, and received orders of over €6.75bn, 5.4x issue size. If not called by 30 April 2036, the coupon will reset to the 5Y Mid-Swap plus 385.5bp. A trigger event would occur if the CET1 ratio on a consolidated basis falls below 5.125%.
SocGen raised €750mn via a PerpNC6 AT1 bond at a yield of 6.0%, 50bp inside initial guidance of 6.5% area. The junior subordinated note is rated Ba2/BB/BB+. If not called by 13 February 2032, the coupon will reset to the 5Y Mid-Swap plus 325.4bp.
Islamic Development Bank raised $1bn via a 5Y FRN sukuk at SOFR MS+52bp, 3bp inside initial guidance of SOFR MS+55bp area. The senior unsecured note is rated Aaa/AAA/AAA, and received orders of over $2.65bn, 2.65x issue size.
Hong Kong raised €750mn via a 8Y green bond at a yield of 3.119%, 32bp inside initial guidance of MS+40bp area. The senior unsecured note is rated Aa3/AA+/AA-. Proceeds will be used to finance/refinance projects aligning with its green framework.
Golomt Bank raised $450mn via a 3Y bond at a yield of 8.125%, 37.5bp inside initial guidance of 8.50% area. The senior unsecured note is rated B+/B+. Proceeds will be used to fund the purchase of the notes under its concurrent tender offer, alongside related costs and expenses.
Kraft Heinz raised €1bn via a two-trancher. It raised €500mn via a 5Y bond at a yield of 3.695%, ~34.5bp inside initial guidance of MS+120/125bp area. It also raised €500mn via an 8Y bond at a yield of 4.065%, ~34.5bp inside initial guidance of MS+145/150bp area. The senior unsecured notes are rated Baa2/BBB/BBB. Proceeds will be used to fund the purchase of its notes due 2046 and 2049 under its tender offer.
Rating Changes
- Fitch Upgrades AmeriGas Partners, L.P.’s IDR to ‘BB-‘ Following Equity Contribution; Outlook Stable
- Moody’s Ratings upgrades AmeriGas’ CFR to Ba3, positive outlook; affirms UGI International’s Ba2 CFR, stable outlook
- Far East Horizon ‘BBB-‘ Ratings Affirmed; Removed From CreditWatch Negative; Outlook Stable
- Moody’s Ratings affirms Baa1 senior unsecured rating of Howmet Aerospace, changes outlook to positive
New Bonds Pipeline
- Korea Credit Guarantee Fund $ 3Y bond
Term of the Day: Cocoa Bonds
Cocoa bonds are bonds currently issued by Ghana to fund cocoa purchases from farmers. Being the world’s second-largest cocoa grower, Ghana is planning to raise $1bn via a domestic cocoa bond issuance. The bond(s) will be denominated in cedi, easing the country’s reliance on dollar funding and foreign lenders. This comes amid sharp swings in cocoa prices over the last few years.
Talking Heads
On Junk-Bond Craze in Emerging Markets Is Strongest in Eight Years
Nick Eisinger, JPMorgan Asset Management
“Under a more supportive macro environment, EM HY could outperform EM IG given the higher spread differential, with IG spreads now looking quite tight”
On finding stability in longer-run inflation views in April
Beth Hammack, Cleveland Fed President
“On the inflation side we have been missing our 2% objective for the past five years, and with the pressures that we see right now coming from the conflict in Iran, it could mean that those pricing pressures are going to be more persistent”
John Williams, New York Fed President
“This is critically important, because well-anchored expectations have proven to be invaluable to ensuring price stability during unexpected shocks and extreme uncertainty”
On US Yields at 5% Tug Traders Between Dip-Buying Greed and Fear
Brij Khurana, Wellington Management
“The back-end seems relatively sticky at the 5% level and we’ll see whether that holds… bond market is reacting to the inflation pressures of the war, but also to the substantial growth that we’ve gotten in the last few months”
John Canavan, Oxford Economics
“Even if the Strait is reopened, any initial relief rally may be short-lived”
Krishna Guha, Evercore ISI
“We think market pricing remains too hawkish. A deal with oil moving lower is consistent with Fed cuts delayed not derailed”
Top Gainers and Losers- 08-May-26*
Go back to Latest bond Market News
Related Posts:
Our Awards
BondbloX Pte. Ltd. is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.