JOBLESSNESS IN THE U.S. has fallen to 3.6%, marking the lowest level since December 1969. This is due in part to a shrinking labor force, but also indicates that the economy remains strong. The Dow Jones recovered well Friday after two days of significant loss, closing up 195 points. 10-Year U.S. Treasury Notes fell 1.5 basis points. S&P +0.96%, Dow +0.75%, NASDAQ +1.58%.
|Key Gainers and Losers||Volume Leaders|
|Apple Inc. 2.4% 5/3/2023
GE Capital Intl. Funding Co. 4.418% 11/15/2035
|Industry Returns Tracker|
|New Issues||New Issues [Continued]|
1. Goldman Sachs Group Inc. (USD) 3% 5/9/2025 (05/02/2019):95MM Unsecured Notes, Price at Issuance 100, Yielding 3%.
2. EG Global Finance PLC (USD) 6.75% 2/7/2025 144A (05/02/2019):750MM First Lien Notes, Price at Issuance 100, Yielding 6.75%.
Pacific Premier Bancorp Inc. The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 4/26/19, with a net outflow of $0.520B, year-to-date $13.8B flowed into high-yield.
|Top Widening Credit Default Swaps (CDS)||Top Narrowing Credit Default Swaps (CDS)|
|Weatherford International LTD (5Y Sen USD XR14)
Hovnanian Enterprises Inc. (5Y Sen USD MR14)
|SuperValu Inc. (5Y Sen USD XR14)
Atmos Energy Corp. (5Y Sen USD MR14)
Loans and Credit Market OverviewSYNDICATED LOANS HIGHLIGHTS:
Deals recently freed for secondary trading, notable secondary activity:
- Lonsdale Finance Pty LTD, iHeartCommunications Inc., Flexera Software Inc., JBS USA LLC, Sundyne US Purchaser
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 15 bp (basis points), as of 05/03/19
- Net positive capital flows into high-yield ETFs & mutual funds
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