US Headline & Core CPI Rise in May; Danantara Launches $ Bonds

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June 11, 2026

Credit Ratings
Macro News

US Treasury yields rose marginally across the curve. On the data front, US headline CPI rose by 4.2% in May, inline with expectations and higher than April’s 3.8%. The Core CPI print rose by 2.9%, again inline with expectations and higher than April’s 2.8%. On the geopolitical front, the US and Iran attacked each other amid a second day of strikes, as tensions escalated. Brent crude rose by nearly 2%.

Looking at equity markets, the S&P and Nasdaq ended lower by 1.6% and 2% respectively. US IG CDS spreads widened by 1bp and HY CDS spreads widened 4.4bp. European equity markets ended broadly lower. European IG CDS spreads were 0.1bp wider and Crossover spreads widened by 1.4bp. Asian equity markets have opened lower this morning. Asia ex-Japan CDS spreads widened by 1.6bp.

New Bond Issues

Danantara $ 5Y/10Y at 5.7%/6.3% areas
ICBC (Dubai) 3Y $ SOFR+90bp area

Barclays raised €3bn via a two-trancher. It raised €1.75bn via a 2Y FRN at 3m Euribor+38bp, 22bp inside initial guidance of 3m Euribor+60bp area. It also raised €1.25bn via a 3Y bond at a yield of 3.32%, 25bp inside initial guidance of MS+70bp area. The senior unsecured notes are rated A1/A+/AA-. Proceeds will be used for general corporate purposes of the issuer and its subsidiaries. Proceeds will be used for the repayment of short-term borrowings and for general corporate purposes.

BNP Paribas Cardif SA raised €700mn via a PerpNC7.5 RT1 bond at a yield of 6.125%, 37.5bp inline with initial guidance of 6.50% area. The junior subordinated noteis rated BBB- (S&P). A trigger event would occur if the solvency capital ratio (SCR) is equal to or less than 75%, or the medical cost ratio (MCR) is equal to or less than 100% or, the SCR ratio is less than 100% but higher than 75% for a continuous period of 3 months from the date when non-compliance with the SCR was first observed.

QBE Insurance raised €500mn via a 11NC6 Tier-2 bond at a yield of 4.293%, ~27.5bp inside initial guidance of MS+160/165bp area. The subordinated note is rated BBB+/BBB+, and received orders of over €1.8bn, 3.6x issue size.

American Express raised €750mn via an 8NC7 bond at a yield of 3.835%, 25bp inside initial guidance of MS+110bp area. The senior unsecured note is rated A2/A-/A. Proceeds will be used for general corporate purposes.

New Bonds Pipeline

Vedanta Resources $ long 5Y, long 7Y, long 10Y bonds

Rating Changes

Argentina Long-Term Ratings Raised To ‘B-‘ On Better Access To Financing; Outlook Stable
Ukraine-Based Metinvest B.V. Upgraded To ‘CCC+’ On Repayment Of Bond; Outlook Negative
Georgia Capital JSC Upgraded To ‘BB’ On Continued Deleveraging And Solid Asset Performance; Outlook Stable
Moody’s Ratings changes Vulcan Materials Company’s outlook to positive from stable, affirms Baa2/P-2 ratings
Fitch Revises Outlook on Bally’s Corporation to Negative; Affirms at ‘B-‘

Term of the Day: Restricted Tier 1 (RT1) Bonds

Restricted Tier 1 (RT1) bonds are junior subordinated securities issued by insurers that qualify as capital under Europe’s insurance regulation (known as Solvency II). To qualify as Tier 1 capital, the bonds must be perpetual, no step-up in coupon and a contractual trigger to principal write-down or equity conversion. According to the Solvency II directive, RT1s will automatically convert into equity or be written down upon three events:

– Breach of the Solvency Capital Requirement (SCR), which defines the capital required to ensure that the insurance company can meet its obligations over the next 12 months, for more than three months
– Drop of solvency ratio below 75% of the SCR
– Breach of the Minimum Capital Requirement (MCR), which is the threshold below which the national regulator would intervene”

Talking Heads

On Warning that a Wave of Defaults Is Coming for Low-Quality Borrowers – Pimco

“The credit loss cycle is upon us… the default cycle is reasserting itself, and we expect significantly higher losses in lower-quality credit such as leveraged and private direct lending… increased instances of maturity extensions and payment-in-kind structures that allow borrowers to repay debt with more debt… a more genuine default cycle is now unfolding”

On Seeing May as CPI ‘High-Water Mark’ With Fed Set to Hold – JPMorgan

“Essentially we’re going to get a 12-zero vote to do nothing… Inflation is higher than they want. But I think there’s a good chance that this month, May, will actually turn out to be the high-water mark for inflation in this cycle… It’s not nice seeing a four-handle”

On Investors Growing More Selective on Data Center Bonds – Citi

“This divergence highlights that project-specific factors beyond tenant credit quality… As the first IG private data center financing of its kind, Beignet likely priced with a premium reflecting the novelty of the structure”

Top Gainers and Losers- 11-Jun-26*