Investment Grade Bond Research - May 10, 2019

Posted by Andrew Robartes on May 10, 2019 5:15:16 PM
Find me on:

U.S. STOCKS RECOVERED SOME LOSSES FRIDAY despite trade talks with China failing to reach a deal. Of the three major indices, the tech-heavy NASDAQ produced the smallest gains as a result of its exposure to China, closing up 0.08%. 10-Year U.S. Treasury yields rose 2.5 basis points. S&P +0.37%, Dow +0.44%, NASDAQ +0.08%. 

UBER DISAPPOINTED IN TODAY’S HIGHLY anticipated initial public offering. The San Francisco-based ride service company closed at $41.57 per share, down from its IPO price of $45. Uber executives are confident the company will prevail despite volatility. In the corporate bond market, Bausch Health Companies Inc. priced $1.5B in senior unsecured notes. The company plans to use the proceeds to repurchase principal across their existing notes. Bausch Health reported strong results in Q1 and analysts foresee the potential for more growth.   ADI proprietary index data showed a net yield increment for high-yield versus high-grade bonds. High-grade edged out high-yield. Among high-grade bonds showing topmost price gains at appreciable volumes traded, Apple Inc. (USD) 3.45% 2/9/2045 made analysts' 'Conviction Buy' lists. (See the chart for  Apple Inc. (USD) 3.45% 2/9/2045 below.) Andrew Robartes (
Key Gainers and Losers Volume Leaders
+   GE Capital Intl. Funding Co. 4.418% 11/15/2035 + 0.2%
  Ford Motor Co. 4.346% 12/8/2026 + 0.2%
-   Deutsche Bank AG 2.95% 8/20/2020 (1) -0.1%
CVS Health Corp.   5.05% 3/25/2048
Toyota Motor Credit Corp.   VAR% 5/17/2022
Industry Returns Tracker
Industry Past Day Past Week Past Month Past Quarter YTD Past Year
Agriculture, Forestry, Fishing -0.13% 0.83% 0.75% 2.90% 5.25% 4.74%
Mining -0.05% 0.08% 0.29% 2.77% 5.91% 6.43%
Construction 0.09% 0.35% 0.83% 2.88% 4.54% 5.65%
Manufacturing 0.00% 0.20% 0.50% 2.35% 4.62% 5.57%
Transportion, Communication, Electric/Gas 0.05% 0.31% 0.79% 3.37% 5.90% 7.97%
Wholesale -0.05% 0.16% 0.72% 2.72% 5.57% 6.12%
Retail 0.05% 0.22% 0.46% 2.32% 4.73% 6.18%
Finance, Insurance, Real-Estate 0.07% 0.25% 0.55% 2.24% 4.15% 5.98%
Services 0.01% 0.26% 0.42% 2.19% 4.31% 6.50%
Public Administration 0.09% 0.31% 0.47% 1.23% 1.69% 4.11%
Energy -0.04% 0.09% 0.29% 2.92% 6.27% 8.37%
Total returns (non-annualized) by rating, market weighted.

unnamed - 2019-05-10T171125.042

New Issues New Issues [Continued]

1. Omers Finance Trust (CAD) 2.6% 5/14/2029 144A (05/09/2019):1000MM Senior Unsecured Notes, Price at Issuance 99.895, Yielding 2.61%.

2. IBM Corp. (USD) 3.5% 5/15/2029 (05/09/2019): 3250MM Senior Unsecured Notes, Price at Issuance 99.749, Yielding 3.53%.


Additional Commentary

NEW ISSUANCE WATCH: on 5/10/19 participants welcome a $500MM new corporate-bond offering by O'Reilly Automotive Inc. The most recent data showed money flowed into high-yield ETFs/mutual funds for the week ended 5/03/19, with a net inflow of $21.3MM, year-to-date $13.9B 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)
San Miguel Corp. (5Y Sen USD CR14)
Atmos Energy Corp. (5Y Sen USD MR14)

think.advantagedata.comhubfsunnamed (95)-1

Loans and Credit Market Overview


Deals recently freed for secondary trading, notable secondary activity:
  • Hargray Communications Group Inc., Rikshem AB, Broadcom LTD, Verifone 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 12 bp (basis points), as of 05/10/19
  • Net positive capital flows into high-yield ETFs & mutual funds

Copyright 2019 Advantage Data Inc. All Rights Reserved.

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.

Topics: High Yield, Investment Grade, Loans, Analytics, bonds, junk bonds, bond market, market analytics, New Issues, Finance, Fixed Income, News, Syndicated Bonds, syndicated, research, market update

Are you using AdvantageData?

AdvantageData is your fixed income solution for pricing, analytics, reports, and insight on approximately:

  • 500,000+ U.S. and international corporate bonds
  • Over 6,200+ CDS reference entities
  • Over 22,000+ syndicated loans
  • Over 100 equity markets worldwide
  • One platform 16 products and services from debt to CDS to loans to mid-market
  • Used by top buy and sell-side firms worldwide

Subscribe to Email Updates

Recent Posts