INVESTMENT GRADE DEBT ROSE AGAINST junk bonds in net prices linked to actual trades. Total assets in US money market funds retreated from nearly 10-year highs last week as yields fall. Traders are estimating a 65 percent chance of a 25 basis point cut.  “Even though the Fed will almost certainly cut rates at the end of the month, additional cuts depend heavily on the balance of economic data.” S&P-0.47%, DOW -0.30, NASDAQ -0.24%  The 10-year note dipped 4.6 basis points.

Key Gainers and Losers	Volume Leaders
+   CNH Industrial NV 4.875% 4/1/2021 + 0.1%   Goldman Sachs Group Inc. 5% PERP + 2.2% -   Teva Pharmaceuticals Fin BV 6% 4/15/2024 -0.6%	Antero Resources Corp.   5.625% 6/1/2023 CNH Industrial NV   4.875% 4/1/2021

Industry Returns Tracker

Industry Past Day Past Week Past Month Past Quarter YTD Past Year Agriculture, Forestry, Fishing -0.22% -0.12% 2.94% 5.81% 13.73% 15.26% Mining -0.33% -0.04% 1.03% -2.12% 8.03% 2.81% Construction 0.03% 0.06% 1.37% 2.91% 11.25% 9.09% Manufacturing -0.06% -0.10% 1.10% 1.66% 9.11% 7.46% Transportion, Communication, Electric/Gas -0.06% -0.05% 1.64% 2.93% 10.53% 8.99% Wholesale -0.02% 0.11% 1.28% 2.79% 10.83% 7.78% Retail 0.00% 0.18% 0.71% 3.29% 12.65% 9.95% Finance, Insurance, Real-Estate -0.02% 0.13% 1.40% 2.58% 10.47% 9.26% Services -0.03% 0.07% 0.80% 2.10% 9.92% 8.69% Public Administration 0.02% 0.33% 1.97% 4.48% 10.40% 13.25% Energy -0.32% -0.13% 1.01% -1.45% 8.23% 3.27%   Total returns (non-annualized) by rating, market weighted.

New Issues	Forward Calendar
(None Current 07/17/2019)	1. Sinclair Broadcast Group Inc.: $2.55B, seven-year senior secured notes; $2.325B eight year senior unsecured notes 2. DDM Holding AG: ¬100MM, Expected Q3 2019

NEW ISSUANCE WATCH: on 7/12/19 participants welcome a $600MM new corporate-bond offering by Horizon Pharma Inc. The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 6/21/19, with a net outflow of $602MM, year-to-date $8.9B flowed into high-yield.

 

Top Widening Credit Default Swaps (CDS)	Top Narrowing Credit Default Swaps (CDS)
Hertz Corp. (5Y Sen USD XR14) Hovnanian Enterprises Inc. (5Y Sen USD XR14)	Cable & Wireless Communication (5Y Sen USD CR14) SuperValu Inc. (5Y Sen USD MR14)

Loans and Credit Market Overview

SYNDICATED LOANS HIGHLIGHTS:

Deals recently freed for secondary trading, notable secondary activity: 

• Consolidated Precision Products, Starwood Property Trust Inc., Heritage Power, LLC

Long-term bond yields are expected to hit a cyclical peak in 2019 given tight fiscal policy and lagging global economies. Europe remains checked by stubbornly low inflationary forces.  Positive effects remained in force:

• TED spread held below 16 bp (basis points), as of 07/17/19
• Net positive capital flows into high-yield ETFs & mutual funds 

Copyright 2019 Advantage Data Inc. All Rights Reserved. http://www.advantagedata.com

Information in this document should not be regarded as an offer to sell or solicitation of an offer to buy bonds or any financial instruments referred to herein. All information provided in this document is believed to be accurate. However, Advantage Data and its sources make no warranties, either express or implied, as to any matter whatsoever, including but not limited to warranties of merchantability or fitness for a particular purpose. Opinions in this document are subject to change without notice. Electronic redistribution, photocopying and any other electronic or mechanical reproduction is strictly prohibited without prior written permission from Advantage Data Inc.