U.S. STOCKS DROPPED MONDAY morning amid trade tensions with China. By mid-afternoon, most of the losses had been recovered, despite being down close to 500 points earlier in the day. Industrial and tech companies with exposure to China fared the worst, as shown by a 0.5% decline in the NASDAQ. 10-Year U.S. Treasury Notes fell 2.5 basis points. S&P -0.45%, Dow -0.25%, NASDAQ -0.50%.
|Key Gainers and Losers||Volume Leaders|
|Occidental Petroleum Corp. 4.2% 3/15/2048
Dowdupont Inc. 4.493% 11/15/2025
|Industry Returns Tracker|
|New Issues||New Issues [Continued]|
1. American Water Capital Corp. (USD) 3.45% 6/1/2029 (05/06/2019):550MM Senior Unsecured Notes, Price at Issuance 99.779, Yielding 3.48%.
2. Public Service Electric & Gas Co. (USD) 3.85% 5/1/2049 (05/06/2019): 375MM Secured Notes, Price at Issuance 99.983, Yielding 3.85%.
|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)
|SuperValu Inc. (5Y Sen USD MR14)
Atmos Energy Corp. (5Y Sen USD MR14)
Loans and Credit Market OverviewSYNDICATED LOANS HIGHLIGHTS:
Deals recently freed for secondary trading, notable secondary activity:
- Twin River Management Group Inc., Lonsdale Finance Pty LTD, iHeartCommunications 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 14 bp (basis points), as of 05/06/19
- Net positive capital flows into high-yield ETFs & mutual funds
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