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HLX – Helix Energy Solutions Group
Action: Buy 2029 9.750% Bond CUSIP: 42330PAL1 (7.325% YTW, 6.215% iYTW)

Aggregate Credit Market and Credit Fundamental Review
Since the Fed started communicating plans to aggressively raise rates in the face of inflationary pressures in 2022, the Fed has consistently been hawkish. The over 500bps increase in interest rates from mid-2021 lows pushed the aggregate corporate cost to borrow to the high end of levels seen in the prior bull market. However, recent rate cuts have begun to ease credit market risk pricing, with borrowing costs declining and reopening opportunities for corporate growth and improved refinancing decisions. As lower rates take effect, corporate cash flow and cash buffers may begin to recover. Additionally, improved bank credit access and loosened credit spreads may help support growth momentum.