HIGH-YIELD BONDS OUTPACED INVESTMENT-GRADE in net prices linked to actual trades. Treasury prices dipped sending yields higher, the 10-year Treasury note rose 3.8 basis points and the 30-year notegained 2.4 basis points. Gold slid to its lowest point in 2019 as a risk-on appetite picks up sending equity indexes near record highs. S&P +0.14%, DOW +0.31%, NASDAQ +0.45%.
|Key Gainers and Losers||Volume Leaders|
|21st Century Fox America 5.576% 1/25/2049 144A
Dell Intl LLC 5.3% 10/1/2029 144A
|Industry Returns Tracker|
|New Issues||New Issues [Continued]|
1. BMW US Capital LLC (USD) FLT% 4/14/2022 Reg S (04/15/2019):300MM Senior Unsecured Notes, Price at Issuance 100.
2. BMW US Capital LLC (USD) 3.15% 4/18/2024 144A (04/15/2019):1000MM Senior Unsecured Notes, Price at Issuance 99.94, Yielding 3.16%.
PNC Financial Services Group Inc. The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 4/12/19, with a net inflow of $0.655B, year-to-date $13.3B flowed into high-yield.
|Top Widening Credit Default Swaps (CDS)||Top Narrowing Credit Default Swaps (CDS)|
|Weatherford International LTD (5Y Sen USD XR14)
Hertz Corp. (5Y Sen USD CR14)
|SuperValu Inc. (5Y Sen USD MR14)
Atmos Energy Corp. (5Y Sen USD MR14)
Loans and Credit Market Overview
Deals recently freed for secondary trading, notable secondary activity:
- Trade Me Group LTD, Jane Street, Six Flags Inc., MW Industries Inc.
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 19 bp (basis points), as of 04/16/19
- Net positive capital flows into high-yield ETFs & mutual funds
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