INVESTMENT-GRADE DEBT ROSE AGAINST JUNK BONDS in net prices linked to actual trades. Fed meeting minutes from March released on Wednesday indicated a holding pattern will continue, “A majority of participants expected that the evolution of the economic outlook and risks to the outlook would likely warrant leaving the target range unchanged for the remainder of the year”. 10-year Treasury note declined 3.1 basis points. S&P +0.27%, DOW -0.06%, NASDAQ -0.61%
|Key Gainers and Losers||Volume Leaders|
|Starbucks Corp. 3.8% 8/15/2025
Molson Coors Brewing Co. 4.2% 7/15/2046
|Industry Returns Tracker|
|New Issues||New Issues [Continued]|
1. Waste Connections Inc. (USD) 3.5% 5/1/2029 (04/09/2019):500MM Senior Unsecured Notes, Price at Issuance 99.738, Yielding 3.53%.
2. Toyota Motor Credit Corp. (USD) 2.65% 4/12/2022 (04/09/2019):750MM Senior Unsecured Notes, Price at Issuance 99.937, Yielding 2.67%.
Public Storage. The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 4/5/19, with a net inflow of $2.0B, year-to-date $12.0B 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 OverviewSYNDICATED LOANS HIGHLIGHTS:
Deals recently freed for secondary trading, notable secondary activity:
- MW Industries Inc., Ultimate Software Group, Crossamerica Partners LP
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 17 bp (basis points), as of 04/10/19
- Net positive capital flows into high-yield ETFs & mutual funds
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