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 paper trading below 65 cents on the dollar across a 2to7year tenor, isolating an asymmetric opportunity to capture significant capital appreciation alongside baseline income as these issues unwind toward par. The opportunity set cleanly bifurcates between pristine highgrade sovereignlinked names—such as Korea Development Bank (AA rated, 4.141% YTW) and major Japanese financials like MUFG (A rated, 4.622% YTW)—offering highconviction spread convergence, and higherbeta carry vehicles. On the tactical end, distressed and specialsituation issuers like CSN Resources (trading mid50s with yields approaching 19.5%) provide aggressive totalreturn alpha, contrasting with highbeta US fintech exposure like Coinbase (BB rated, 6.751% YTW) to balance duration risk against credit dispersion.
| # | 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.