JUNK BONDS ROSE AGAINST INVESTMENT GRADE DEBT in net prices linked to actual trades.  Treasury yields ticked higher on Tuesday following optimism from the White House regarding China trade talks stating the tariff war is “a little squabble”. The 10-year note gained 1.6 basis points. Equities regained some losses from yesterday, S&P - +1.03%, Dow +1.05%, NASDAQ +1.34%.

Key Gainers and Losers	Volume Leaders
+   Bausch Health Companies Inc. 7.25% 5/30/2029 144A + 0.5%   Mattel Inc. 6.75% 12/31/2025 144A + 0.1% -   Rite Aid Corp. 6.125% 4/1/2023 144A -0.9%	Petrobras Global Finance BV   7.375% 1/17/2027 Valeant Pharmaceuticals Intl. Inc.   5.5% 11/1/2025 144A

Industry Returns Tracker

Industry Past Day Past Week Past Month Past Quarter YTD Past Year Agriculture, Forestry, Fishing -0.28% -1.12% -1.58% 2.46% 6.37% 8.64% Mining -0.47% -1.07% -1.47% 1.63% 8.02% 2.44% Construction -0.36% -0.71% -0.11% 3.64% 8.13% 5.53% Manufacturing -0.37% -0.72% -0.28% 2.70% 7.14% 5.96% Transportion, Communication, Electric/Gas -0.37% -0.89% -0.47% 3.08% 6.93% 6.54% Wholesale -0.16% -0.50% 0.13% 2.62% 7.30% 5.15% Retail -0.38% -0.78% 0.37% 3.17% 8.75% 5.45% Finance, Insurance, Real-Estate -0.24% -0.53% -0.04% 2.74% 7.39% 6.39% Services -0.37% -0.65% -0.46% 2.40% 7.48% 6.99% Public Administration 0.12% 0.12% 0.95% 3.85% 6.77% 12.94% Energy -0.43% -1.16% -1.47% 1.70% 7.81% 1.93%   Total returns (non-annualized) by rating, market weighted.

New Issues	Forward Calendar
(None Current 05/14/2019)	1. Twinset Spa: ¬170M 5 year senior secured floating-rate notes, Expected Q2 2019 2. Diamondback Energy Inc.: High-yield notes, Expected Q2 2019 3. General Electric Distributed Power: $600M high-yield bonds, Expected Q2 2019

NEW ISSUANCE WATCH: on 5/10/19 participants welcome a $190MM new corporate-bond offering by Williams Scotsman International Inc. The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 5/10/19, with a net outflow of $212MM, year-to-date $13.6B 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)	SuperValu Inc. (5Y Sen USD XR14) San Miguel Corp. (5Y Sen USD CR14)

Loans and Credit Market Overview

SYNDICATED LOANS HIGHLIGHTS:

Deals recently freed for secondary trading, notable secondary activity: 

• Eldorado Gold Corp., Oryx Midstream, Hargray Communications Group Inc., Rikshem AB

OVERALL CREDIT MARKET:
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 12 bp (basis points), as of 05/14/19
• Net positive capital flows into high-yield ETFs & mutual funds 

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