Below Par — Capital-Gain Kicker

Discounted USD coupon bonds (price ≤ 92) with a 2–7Y tenor and BB+ or better rating.

This screen targets deepdiscount USDdenominated fixedincome assets trading at 92 or below with twotosevenyear tenors, capturing a compelling totalreturn profile driven by both carry and convergence to par. By focusing on instruments with depressed cash prices, portfolios can secure substantial capital appreciation potential alongside reliable coupon income. Highgrade issuers dominate the upper tiers of the screening matrix, offering institutional investors exceptional credit backing paired with asymmetric return upside. Names like Korea Development Bank (KDB) at a 4.14% YTW and MUFG at a 4.62% YTW combine investmentgrade security with deepdiscount convexity rarely found in core sovereign or quasisovereign buckets. Pockets of distress and high beta create distinct relativevalue opportunities further down the screen, led by select emergingmarket basic materials and US financial credits like Coinbase (COIN) offering a 6.75% YTW. This blend of pristine international banks and opportunistic yields allows portfolio managers to tailor duration risk while optimizing capitalgain kickers across varied macro environments.

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