7%+ Club — High-Coupon Income

Coupon ≥ 7% and YTW ≥ 7%, price ≥ 80, excluding distressed names.

The "7%+ Club" screen isolates highincome opportunities by targeting USDdenominated corporate debt offering both a nominal coupon and YieldtoWorst (YTW) of 7% or higher, trading at cash prices at or above 80. This cohort addresses portfolio cashflow demands by capturing elevated baseline yields across industrial, financial, and commodity sectors without leaning into distressed pricing territory. Within this universe, idiosyncratic credit risk heavily dictates return profiles, highlighted by distressedrated Brazilian petrochemical player Braskem offering a 7.25% security at a 23.52% YTW, alongside distressed Ukrainian credits like Metinvest at a 25.235% YTW and DTEK Energy yielding 21.772%. Meanwhile, cyclical and communication names such as Staples and Consolidated Communications push the boundaries higher still, offering YTWs above 19% backed by doubledigit nominal coupons. Professional fixedincome allocators can leverage these dislocations to secure substantial carry, though bottomup credit selection remains paramount given the heavy representation of CCC and lowerrated credits. Balancing these doubledigit yields against fundamental headwinds allows portfolio managers to target asymmetric total return potential in a higherforlonger rate environment.

Results are limited to USD bonds with an amount outstanding of at least USD 200MM.