Below Par — Capital-Gain Kicker
Discounted USD coupon bonds (price ≤ 92) with a 2–7Y tenor and BB+ or better rating.
This quantitative screen identifies highconviction USDdenominated debt trading at exceptionally deep discounts (prices between 52.89 and 63.97) across a 2to7year tenor, engineered specifically to capture an aggressive capitalgain kicker alongside steady baseline carry. The selection heavily favors highgrade international financial institutions and utilities—including toptier Japanese, Korean, and New Zealand names like MUFG (5.36% coupon, 4.622% YTW) and KDB (4.64% coupon, 4.141% YTW)—offering resilient balancesheet quality paired with compelling priceappreciation potential as bonds converge toward par. Yield profiles vary sharply depending on idiosyncratic credit tiering, spanning secure investmentgrade carry in names such as KORELE (4.169% YTW) to distressedlevel doubledigit pricing anomalies like CSNABZ (19.578% YTW), creating distinct relativevalue entry points for institutional portfolios targeting asymmetric total returns.
| # | Issuer | ISIN | Coupon | YTW | Price | Maturity | Next Call | Rating | CUR | AMT OUT |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | CSN Resources S.A. | …AK60 | 5.875 | 19.578 | 55.25 | 2032-04-08 | 2027-04-08 | High Yield 1 | USD | 500MM |
| 2 | CSN Resources S.A. | …AJ97 | 4.625 | 19.538 | 55.8471429 | 2031-06-10 | 2026-11-22 | High Yield 1 | USD | 850MM |
| 3 | Coinbase Global Inc | …AB62 | 3.625 | 6.751 | 63.56 | 2031-10-01 | 2026-11-02 | BB- | USD | 737MM |
| 4 | Sumitomo Mitsui Financial Group Inc. | …DX56 | 5.07 | 4.634 | 58.81 | 2031-07-08 | 2030-07-08 | A- | USD | 900MM |
| 5 | Mitsubishi UFJ Financial Group Inc. | …DJ06 | 5.36 | 4.622 | 52.89 | 2031-04-24 | 2030-04-24 | A- | USD | 500MM |
| 6 | Sumitomo Mitsui Financial Group Inc. | …DR88 | 4.93 | 4.542 | 58.02 | 2030-04-15 | A- | USD | 800MM | |
| 7 | ASB Bank Ltd. | …AJ81 | 4.78 | 4.384 | 63.97 | 2030-10-29 | AA- | USD | 300MM | |
| 8 | Korea Electric Power Corp. | …AP77 | 4.5 | 4.169 | 57.29 | 2028-11-12 | AA | USD | 600MM | |
| 9 | Korea Development Bank | …EJ36 | 4.64 | 4.141 | 59.37 | 2030-02-03 | AA | USD | 900MM | |
| 10 | China Construction Bank Corporation, Hong Kong Branch | …1625 | 4.48 | 4.084 | 55.85 | 2030-05-28 | Inv Grade 3 | USD | 500MM |
Results are limited to USD bonds with an amount outstanding of at least USD 200MM.