Below Par — Capital-Gain Kicker

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

This theme screens USD fixedrate bonds priced at or below 92 with 2–7 year tenors. It targets investors who want capital gains from prices converging toward par, on top of running coupon income. Discounted prices lift yieldtoworst well above coupon levels, so the return profile depends heavily on the price path as well as the coupon. Ottobock's 10% 2030 notes, priced at 64.81, yield 26.8% to worst, and CSN's 4.625% 2031 bonds, priced near 50.5, yield 22.5%. These offer the widest yields in the set and the largest pulltopar potential. Their CCClevel credit profile and Brazilian basicmaterials exposure, however, mean the compensation comes with meaningfully higher default and spread risk. For a more contained risk profile, CoreWeave's 9.75% 2031 notes are rated B, yield 16.3% at 78.5, and sit in a technology sector with stronger credit metrics. Aegea's 9% 2031 bonds, priced at 83, yield 14.6% and offer utilitysector cashflow visibility. Both combine a meaningful discount with relatively lower credit risk, making them useful relativevalue comparisons against the deeperdiscount names.

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