THE GAP BETWEEN JOB OPENINGS AND THE UNEMPLOYED WIDENED by the largest margin ever in April. Job openings in education, retail, and construction far
exceeded the number of unemployedAmericans, at the end of April there were
7.449 million unfilled jobs. Gold retreated after nine consecutive sessions of gains, settling 1.3 percent lower as
U.S. and Mexico trade tensions regress. The 10-year note rose 6.0 basis points
. S&P +0.56%,
DOW +0.43,
NASDAQ +1.18%.
CONSUMER INFLATION EXPECTATIONS HAVE WORSENED according to a Fed survey, the official figures are published on Wednesday.
“One of the justifications for the Fed to cut rates this year will be the surprisingly weak inflation.” Delivery of July
crude oil settled 1.28 percent lower or $53.31 per barrel. In May,
OPEC nations produced 30.09 million barrels a day marking the lowest production levels since February 2015. Despite Saudi Araba
pumping 9.7 million barrels a day, a four-year low, the nation sees
“the need to keep cuts around the current levels.” ADI proprietary index data showed a net
yield increment for high-yield versus high-grade bonds. High-yield edged out high-grade. Among high-yield bonds showing topmost price gains at appreciable volumes traded,
MGM Resorts International (USD) 4.625% 9/1/2026 made analysts' 'Conviction Buy' lists. (See the chart for
MGM Resorts International bonds below.)
Corey Mahoney (
cmahoney@advantagedata.com).
| Key Gainers and Losers |
Volume Leaders |
| + |
Dish DBS Corp. 5.875% 11/15/2024 |
+ 0.3% |
| |
Echostar Communications Corp. 5% 3/15/2023 |
+ 0.8% |
| - |
Pacific Gas & Electric Co. 6.05% 3/1/2034 |
-0.4% |
|
Dish DBS Corp. 5.875% 11/15/2024
L Brands Inc. 5.25% 2/1/2028
|
| Industry Returns Tracker |
| Industry |
Past Day |
Past Week |
Past Month |
Past Quarter |
YTD |
Past Year |
| Agriculture, Forestry, Fishing |
0.24% |
0.63% |
0.36% |
2.03% |
6.88% |
8.70% |
| Mining |
0.30% |
0.17% |
-2.79% |
-0.32% |
6.22% |
0.70% |
| Construction |
0.17% |
0.82% |
0.53% |
3.34% |
8.41% |
6.77% |
| Manufacturing |
0.22% |
0.94% |
-0.64% |
1.65% |
7.08% |
5.37% |
| Transportion, Communication, Electric/Gas |
0.19% |
0.66% |
0.60% |
3.40% |
8.44% |
7.74% |
| Wholesale |
0.28% |
0.81% |
0.27% |
2.31% |
8.40% |
5.34% |
| Retail |
0.25% |
0.68% |
-0.25% |
4.06% |
11.01% |
7.41% |
| Finance, Insurance, Real-Estate |
0.19% |
0.67% |
0.22% |
2.67% |
8.34% |
7.71% |
| Services |
0.27% |
0.88% |
0.53% |
2.68% |
8.65% |
7.60% |
| Public Administration |
-0.09% |
0.43% |
0.53% |
1.91% |
7.45% |
12.42% |
| Energy |
0.34% |
0.24% |
-2.73% |
-0.08% |
6.16% |
0.68% |
| |
| Total returns (non-annualized) by rating, market weighted. |
|
| New Issues |
Forward Calendar |
|
(None Current 06/10/2019)
|
1. Twinset Spa: ¬170M 5 year senior secured floating-rate notes, Expected Q2 2019
2. Nexstar Media Group Inc.: Possible new bonds, Expected Q3 2019
|
Additional Commentary
NEW ISSUANCE WATCH: on 6/7/19 participants welcome a $1300MM new corporate-bond offering by Vistra Operations Co LLC. The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 6/7/19, with a net outflow of $3.2B, year-to-date $6.6B 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 MR14) |
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:
- United PF Holdings LLC, Packers Holdings, Charles Schwab Corp., Tundra Energy Marketing
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 15 bp (basis points), as of 06/07/19
- Net positive capital flows into high-yield ETFs & mutual funds
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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.
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