Energy & Energy Transition

Energy, oil & gas and renewables issuers.

The energy theme spans oil and gas and renewableslinked issuers across ten USD bonds, with the screen dominated by Venezuelan, Russian and other emergingmarket names. Here, yield, price and credit quality diverge sharply, so the relativevalue case depends heavily on which part of the curve and capital structure an investor is examining. Headline yields are extreme: PDVSA 6% 2026 at 40.25 shows a YTW of roughly 9,980%, and PDVSA 5.375% 2027 at 16.79 roughly 1,176%. These figures reflect distressed pricing close to maturity and sanctionsdriven uncertainty rather than sustainable carry, so they should be read as stress signals, not income. The midtable names offer more interpretable relative value. CNECN 5.75% 2028 at 40.38 (about 60.3% YTW), SCCPWR 4% 2032 at 13.05 (about 54.0%) and LUKOIL 2.8% 2027 at 82.42 (about 49.6%) all trade well above investmentgrade energy peers. Sanctions, sovereign and liquidity risk dominate the spread, however, so yield inputs and pricing should be verified before any positioning.

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