ISM Manufacturing Rises; Macquarie, Rabobank and others Price Bonds

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June 2, 2026

Credit Ratings
Macro News

US Treasury yields were broadly steady across the curve. The US ISM Manufacturing PMI for May came in at 54.0, beating expectations of 53.0, marking its highest level in four years. On the geopolitical front, reports indicated that talks between the US and Iran had halted. However, US President Donald Trump later said that talks were progressing at a “rapid pace”. Meanwhile, Trump reportedly asked Israel’s Prime Minister Benjamin Netanyahu to not attack Beirut, which the latter is said to have accepted. Trump also said he spoke with Hezbollah leaders, with both Hezbollah and Israel agreeing to stop attacks against each other.

Looking at equity markets, the S&P and Nasdaq ended higher by 0.3% and 0.4% respectively. US IG CDS spreads widened by 0.3bp and HY CDS spreads widened by 2.5bp. European equity markets ended lower. European IG CDS spreads were 0.7bp wider and Crossover spreads widened by 3.6bp. Asian equity markets have opened mixed this morning. Asia ex-Japan CDS spreads tightened by 0.5bp.

New Bond Issues

Macquarie Bank raised $1.25bn via a 11NC10 Tier-2 bond at a yield of 5.819%, 25bp inside initial guidance of T+160bp area. The subordinated note is rated A3/BBB+/BBB+. Proceeds will be used for general corporate purposes.

Prudential Financial raised $750mn via a 30NC10 bond at a yield of 6.25%, 37.5bp inside initial guidance of 6.625% area. The junior subordinated note is rated Baa1/BBB+/BBB. Proceeds will be used for general corporate purposes, which may include the buyback of its 4.5% 2047s.

Rabobank raised $1.75bn via a three-trancher. It raised:

$700mn via a 2Y bond at a yield of 4.345%, 25bp inside initial guidance of T+55bp area
$450mn via a 2Y FRN at SOFR+41bp vs. initial guidance of SOFR equivalent area
$600mn via a 10Y bond at a yield of 5.119%, 25bp inside initial guidance of T+90bp area

The senior preferred notes are rated Aa3/A+/AA-. Proceeds will be used for general corporate purposes.

Goodyear raised $1.05bn via a 6NC3 bond at a yield of 8.875%, inside initial guidance of low-mid 9% area. The senior unsecured note is rated B2/B+/BB-. Proceeds will be used to repay its 4.875% 2027s, with any remaining net proceeds to be used for general corporate purposes.

Akbank raised $500mn via a 10.5NC5.5 Tier-2 bond at a yield of 8.25%, 25bp inside initial guidance of 8.50% area. The subordinated note is rated B (Fitch).

Lloyds raised £750mn via a 7NC6 bond at a yield of 5.553%, 17bp inside initial guidance of T+115bp area. The senior unsecured note is rated A3/A-/A+.

Noble Finance raised $800mn via an 8NC3 bond at a yield of 6.25%, inside initial guidance of mid-6% area. The senior unsecured note is rated Ba3/BB-/BB-. Proceeds together with cash on hand, will be used to fund a conditional call for its 8.5% 2030s.

New Bonds Pipeline

Hong Kong Telecommunications $ 10Y bond

Rating Changes

Dell Technologies Inc. Upgraded To ‘BBB+’ From ‘BBB’ On Surging AI Demand; Outlook Stable
Moody’s Ratings upgrades ratings of four non-financial corporates following update to sovereign linkages’ methodology
Moody’s Ratings upgrades Noble Finance’s CFR to Ba2, assigns Ba3 rating to new notes
Fitch Upgrades Uber’s IDR to ‘A-‘; Outlook Stable
Fitch Upgrades Volcan’s IDRs to ‘B+’; Outlook Stable
Fitch Upgrades Transportadora de Gas del Sur’s LC IDR to ‘B’; Affirms FC IDR at ‘B-‘; Outlook Stable
Fitch Upgrades Cleco Power’s IDR to ‘BBB+’; Affirms Cleco Holdings’ Ratings
Sammaan Capital Upgraded To ‘BB-/B’ On Likely Improvement In Business Stability; Outlook Stable
Moody’s Ratings upgrades Protective’s ratings following update of cross-sector methodology, outlook stable
Moody’s Ratings upgrades Ericsson ratings to Baa3; stable outlook
Beazer Homes USA Inc. Downgraded To ‘B-‘ Due To Elevated Leverage; Negative Outlook Affirmed
Moody’s Ratings downgrades JetBlue’s CFR to Caa2; outlook negative
Moody’s Ratings downgrades Bally’s Corporation’s CFR to B3
Moody’s Ratings changes Siemens Energy’s outlook to positive from stable, affirms the Baa1 ratings
Moody’s Ratings changes EQT’s outlook to positive, Baa3 rating affirmed
Tronox Holdings PLC Outlook Revised To Positive From Negative On Higher Pricing; Ratings Affirmed

Term of the Day: PMI

PMIs or Purchasing Managers’ Index are an index composed of a monthly survey of purchasing managers/supply chain managers across industries. This is a diffusion index, a statistical measure of summarizing the common tendency of a series – if there are more number of values rising than falling, the index is above 50 and the index goes below 50 if the falling values exceed those rising. For PMIs, a value below 50 indicates contraction and a value above 50 shows expansion. These surveys are taken over different areas of the supply chain business: New Orders, Employment, Inventories, Supplier Deliveries and Production covering imports, exports, prices and backlogs. In most countries, Markit publishes the PMI numbers while other organizations publish them too. Markit generally publishes the month’s PMIs in last week of the month.

Talking Heads

On warning that politicizing the Fed would cost public trust – Jerome Powell, Fed Governor

“Democratic institutions take much time, effort, and patience to build but can be torn down all too quickly… “If any administration finds a way to remove Fed officials over policy differences, then ⁠future administrations will do so as well. The public would lose faith…”

On Raising 10Y Treasury Yield Forecast on Fed View – Deutsche Bank

“The change reflects our revised baseline view that the Fed is done cutting and on-hold at long-run nominal neutral through the forecast horizon… Risks relative to that policy baseline are tilted toward hikes. Our outlook for duration is moderately bearish.”

On Japan risking return to stagnation without early rate hike – Makoto Sakurai, ex-BOJ member

“Given broadening price pressures from the Iran war, stagflation is inevitable. There’s a serious risk of the BOJ falling behind the curve. Forgoing a rate hike in June is unthinkable… If the BOJ holds reservations over raising rates now, it will be forced to do so at a rapid pace later and hurt the economy”

Top Gainers and Losers- 02-Jun-26*