LONG-DATED US TREASURY YIELDS GAINED UPON GEOPOLITICAL TENSIONS around the globe. Trade talks between the U.S. and China are in a gridlock and Brexit uncertainties grow after parliament rejects a no-deal. The White House announced there is “no rush” to finalize a trade deal, unwilling to compromise over intellectual property rights. The 10-year U.S. Treasury note gained 0.7 basis points and the 30-year note rose 2.2 basis points. S&P +0.08% Dow +0.07% NASDAQ +0.08%
|Key Gainers and Losers||Volume Leaders|
|Maple Escrow Subsidiary Inc. 4.057% 5/25/2023 144A
Dell Intl LLC 5.3% 10/1/2029 144A
|Industry Returns Tracker|
|New Issues||New Issues [Continued]|
1. KLA-Tencor Corp. (USD) 5% 3/15/2049 (03/13/2019): 400MM Senior Unsecured Notes, Price at Issuance 99.278, Yielding 5.05%.
2. Ford Motor Credit Co. (USD) 5.584% 3/18/2024 (03/13/2019):1500MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5.58%.
Citigroup Inc. The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 3/8/2019, with a net outflow of $1.69B, year-to-date $7.8B flowed into high-yield.
|Top Widening Credit Default Swaps (CDS)||Top Narrowing Credit Default Swaps (CDS)|
|Rite Aid Corp. (5Y Sen USD XR14)
Hertz Corp. (5Y Sen USD XR14)
|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:
- XPO Logistics Inc., MYOB LTD, Dell International, Amer Sports Corp.
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 18 bp (basis points), as of 03/14/19
- 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.