Below Par — Capital-Gain Kicker

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

The Below Par theme screens USD coupon bonds priced at or below 92 with 2–7 year tenors, isolating issues where convergence toward par can add a capitalgain kicker on top of coupon income. The deepest discounts offer the most striking yields: CSN's 4.625% 2031 trades at 52.57 for a 21.35% yieldtoworst, so price recovery would drive a meaningful share of total return. Higherquality names provide a more measured entry point. CRWV's 9.75% 2031, rated B and priced at 78.47, yields 16.29%, while Aegea's 9% 2031 offers 14.54% at 83.01 in the utilities sector. Relative value depends on how much credit risk investors accept for each point of yield. Xerox's 13.5% 2031 yields 17.48% at 88.04 but carries a CCC rating, and OB's 10% 2030 yields 26.81% at 64.81, a reminder that yield rises steeply as ratings fall, so position sizing should reflect that tradeoff.

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