Below Par — Capital-Gain Kicker
Discounted USD coupon bonds (price ≤ 92) with a 2–7Y tenor and BB+ or better rating.
This month’s screen targets USDdenominated paper trading firmly below par (prices clustered in the 50s and low 60s), offering institutional fixedincome investors a compelling totalreturn setup that pairs dependable coupon income with a significant pulltopar capitalgain kicker over a 2 to 7year horizon. The opportunity set spans highgrade global financials and utilities—such as the MUFG 2031 yielding 4.62% and KDB's 2030 issue offering a 4.14% YTW—providing toptier credit profiles alongside select highbeta names like Coinbase, whose 2031 maturity delivers an elevated 6.75% yield. By isolating assets with strict constraints on duration and creditworthiness, this screen highlights mispriced deep discounts across both developed and emerging markets, creating tactical entry points for portfolios seeking asymmetric upside without compromising on issuer quality.
| # | Issuer | ISIN | Coupon | YTW | Price | Maturity | Next Call | Rating | CUR | AMT OUT |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | CSN Resources S.A. | …AJ97 | 4.625 | 19.675 | 55.446 | 2031-06-10 | 2026-11-15 | High Yield 1 | USD | 850MM |
| 2 | CSN Resources S.A. | …AK60 | 5.875 | 19.612 | 55.086 | 2032-04-08 | 2027-04-08 | High Yield 1 | USD | 500MM |
| 3 | Coinbase Global Inc | …AB62 | 3.625 | 6.751 | 63.46 | 2031-10-01 | 2026-10-26 | BB- | USD | 737MM |
| 4 | Sumitomo Mitsui Financial Group Inc. | …DX56 | 5.06 | 4.634 | 58.67 | 2031-07-08 | 2030-07-08 | A- | USD | 900MM |
| 5 | Mitsubishi UFJ Financial Group Inc. | …DJ06 | 5.35 | 4.622 | 52.74 | 2031-04-24 | 2030-04-24 | A- | USD | 500MM |
| 6 | Sumitomo Mitsui Financial Group Inc. | …DR88 | 4.92 | 4.542 | 57.87 | 2030-04-15 | A- | USD | 800MM | |
| 7 | Korea Electric Power Corp. | …AP77 | 4.49 | 4.169 | 56.99 | 2028-11-12 | AA | USD | 600MM | |
| 8 | Korea Development Bank | …EJ36 | 4.63 | 4.141 | 59.23 | 2030-02-03 | AA | USD | 900MM | |
| 9 | Merck & Co., Inc | …BV65 | 4.4498 | 4.093 | 56.97 | 2029-03-15 | A+ | USD | 500MM | |
| 10 | China Construction Bank Corporation, Hong Kong Branch | …1625 | 4.4703 | 4.084 | 55.71 | 2030-05-28 | Inv Grade 3 | USD | 500MM |
Results are limited to USD bonds with an amount outstanding of at least USD 200MM.