TREASURY YIELDS STABILIZED following Friday’s bond market rally and inversion of the 3-month bill and 10-year note. The Federal Housing Authority is tightening lending standards “flagging more loans as high risk” concerned lenders are making loans that will default. The average credit score of a homebuyer seeking a mortgage significantly decreased over the past seven years to 620 compared to 701 in 2011. The 10-year U.S. Treasury note fell 4.3 basis point. S&P -0.07%, Dow +0.1%, NASDAQ -0.08%
|Key Gainers and Losers||Volume Leaders|
|Siemens Financieringsmaatschappij NV 3.3% 9/15/2046 144A
Dell Intl LLC 4% 7/15/2024 144A
|Industry Returns Tracker|
|New Issues||New Issues [Continued]|
1. Sanders RE LTD (USD) FLT% 4/7/2023 (03/25/2019): 300MM Senior Unsecured Notes, Price at Issuance 100.
Interstate Power & Light Co. The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 3/22/19, with a net inflow of $1.8B, year-to-date $10B 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 CR14)
|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:
- Fred Olsen Wind LTD, Carbonite Inc, HotelBeds, Nine West Holdings Inc., TruGreen 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 03/25/19
- Net positive capital flows into high-yield ETFs & mutual funds
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