Energy & Energy Transition

Energy, oil & gas and renewables issuers.

This screen is led by stressed, largely unrated energy credits, and the headline yields reflect distress rather than value. PDVSA 6% 2026, at a 30,197% YTW on a 35.5 price, is not a meaningful return measure and should be read as a signal of default expectations. Excluding the outliers, CNECN 5.75% 2028 (60.3% YTW, price 40.48) and SCCPWR 4% 2032 (54.2% YTW, price 13) show the market pricing substantial recovery risk. Their spreads compensate for uncertainty, not for stable carry. LUKOIL 2.8% 2027 offers a 49.6% YTW at an 82.59 price, a materially higher price than most of the list, which points to a different risk profile. Its Russiadomiciled exposure and sanctions backdrop, however, demand separate credit work before it is compared on relative value with the rest of the theme.

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