Bond markets

19 August 2026, 13:45 UTC Chief Investment Office GWM Investment Research

News, views & trades Bond markets Authors: Helen Habegger, Credit Analyst, UBS Switzerland AG; Rochus Baumgartner, Co-Head CIO Credit, UBS Switzerland AG; Ivan Tiutiunnikov, CFA, Analyst, UBS AG London Branch; Geoff Wan, CFA, Analyst, UBS AG London Branch; Ingo Stößel, CFA, Analyst, UBS Switzerland AG; Claudia Sigl, Analyst, UBS Switzerland AG; Elena Guglielmin, Analyst, UBS Switzerland AG; Alexandra Bossert, CFA, Analyst, UBS Switzerland AG; Mustaq Rahaman, Analyst, UBS AG London Branch; Peter Din, Analyst, UBS Switzerland AG; Csaba Molnár, CFA, Analyst, UBS Switzerland AG; Sebastian Petrich, Analyst, UBS Switzerland AG; Fabrice Schwarzmann, CFA, Analyst, UBS Switzerland AG; Martim Ramada, CFA, Analyst, UBS Switzerland AG; Lidia Casini, Analyst, UBS Switzerland AG

• As the 2Q26 earnings season draws to a close, this edition of News, views & trades reflects on recent earnings results and other developments affecting credit profiles across our coverage universe.

• We revise our issuer credit outlooks to Improving from Stable on Entegris, McKesson, Occidental Petroleum, and Sandoz, to Stable from Improving on Bank of Ireland, Panasonic, Tesco, and Teva, and to Stable from Deteriorating on Telstra and UK Power Networks.

• We also remove Tesco from our Core list. • We highlight bond opportunities across our coverage universe, including instruments from Dassault, Source: Dreamstime Rakuten, and Vonovia. CIO Global Wealth Management (GWM) may include • For a deeper discussion of our preferred positioning and securities in this report that have not been registered under highest-conviction trade ideas, please refer to Conviction Federal US registration rules and individual state registration calls to put cash to work, published on 12 August 2026. rules (commonly known as "Blue Sky" laws) or may not be eligible for investment under the policy of GWM Americas.

The 2Q26 earnings season has provided insight into Figure 1 - Issuers mentioned in this note corporate performance, financial trends, and management expectations across sectors. Beyond earnings, issuers in our coverage remain subject to rating actions, M&A activity, and other credit-relevant developments. In this edition of News, views & trades, we bring together the developments most relevant to credit investors and assess their implications for issuer credit quality and bond valuations.

Source: UBS, as of 19 August 2026

This report has been prepared by UBS Switzerland AG, UBS AG London Branch. Analyst certification and required disclosures begin on page 45. UBSFS accepts responsibility for the contents of this report. U.S. persons who receive this report and wish to effect any transactions in any security discussed in this report should do so with UBSFS and not UBS AG. Page 1 of 50

Figure 2 - Select USD bonds (senior) Instruments of issuers mentioned in this report

Isin Instrument Moody's S&P Ask price YTM (%) Comment

USJ64264AK09 Rakuten Group USD 9.75 2029 n.a. BB 109.0 6.0

US89236TGY55 Toyota Motor USD 3.375 2030 A1 A+ 95.4 4.8

USU2936CAB10 Entegris USD 5.95 2030 Ba2 BB- 100.9 5.7

XS Toyota USD 4.402 2031 A1 A+ 97.8 5.0

US00084EAP34 ABN Amro Bank USD 4.197 2031 A1 A 97.3 4.9

US855244BC24 Starbucks USD 3 2032 Baa1 BBB+ 90.9 4.9

USG0756RBT52 Bank of Ireland USD 4.997 2032 A2 n.a. 99.1 5.2 B

US855244BF54 Starbucks USD 4.8 2033 Baa1 BBB+ 98.2 5.1

USJ6354YBL77 Panasonic USD 5.362 2036 A3 A- 98.5 5.6

US8935268Z94 TC Energy USD 7.625 2039 Baa2 BBB+ 115.3 5.9

Source: UBS, as of 19 August 2026, 09:30 a.m. CET

Figure 3 - Select USD bonds (subordinated) Instruments of issuers mentioned in this report

Next call / Isin Instrument MDY/S&P Ask price YTW (%) Comment maturity

USJ64264AM64 Rakuten USD 8.125 Perp n.a./B

USX10001AD18 Allianz USD 5.6 2054 A1/A+ Solv 2 T2 dated USX10001AF65 Allianz USD 6.5 Perp A3/A Solv 2 RT1

Source: UBS, as of 19 August 2026, 09:30 a.m. CET