U.S. STOCKS FELL FOR THE second consecutive day on Tuesday as trade tensions with China persist. The White House’s earlier threats to increase tariffs on Chinese imports appear to have escalated into an impending reality. Reactions today resulted in nearly a 500 point drop in the Dow Jones, which fell to 25,965. 10-Year U.S. Treasury Notes fell 3.3 basis points amid today's news. S&P -1.65%, Dow -1.79%, NASDAQ -1.96%.
|Key Gainers and Losers||Volume Leaders|
|Comcast Corp. 4.15% 10/15/2028
CVS Health Corp. 5.05% 3/25/2048
|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. Consolidated Edison Inc. (USD) 4.125% 5/15/2049 (05/06/2019):700MM Senior Unsecured Notes, Price at Issuance 99.965, Yielding 4.13%.
Brixmor Operating Partnership LP. 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)|
|Rite Aid Corp. (5Y Sen USD XR14)
Hertz Corp. (5Y Sen USD CR14)
|Road King Infrastructure LTD (5Y Sen USD MR14)
Cable & Wireless Communication (5Y Sen USD CR14)
Loans and Credit Market OverviewSYNDICATED LOANS HIGHLIGHTS:
Deals recently freed for secondary trading, notable secondary activity:
- Verifone Inc., Twin River Management Group Inc., Lonsdale Finance Pty LTD
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 05/07/19
- Net positive capital flows into high-yield ETFs & mutual funds
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