Advantage Data High Yield Bond Market Summary

Investment Grade Bond Research - June 10, 2019

Posted by Corey Mahoney on Jun 10, 2019 5:22:27 PM

THE GAP BETWEEN JOB OPENINGS AND THE UNEMPLOYED WIDENED by the largest margin ever in April.  Job openings in education, retail, and construction far exceeded the number of unemployed Americans, at the end of April there were 7.449 million unfilled jobs.  Gold retreated after nine consecutive sessions of gains, settling 1.3 percent lower as U.S. and Mexico trade tensions regress.  The 10-year note rose 6.0 basis points.  S&P +0.56%, DOW +0.43, NASDAQ +1.18%.

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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

High Yield Bond Research - June 10, 2019

Posted by Corey Mahoney on Jun 10, 2019 5:20:24 PM
THE GAP BETWEEN JOB OPENINGS AND THE UNEMPLOYED WIDENED by the largest margin ever in April.  Job openings in education, retail, and construction far   exceeded the number of unemployed Americans, at the end of April there were   7.449 million unfilled jobs   Gold retreated  after nine consecutive sessions of gains, settling 1.3 percent lower as   U.S. and Mexico trade tensions regress .   The 10-year note rose 6.0 basis points .  S&P  +0.56%,  DOW +0.43,   NASDAQ  +1.18%.
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Topics: Investment Grade, Loans, Analytics, bonds, junk bonds, bond market, market analytics, New Issues, News, Syndicated Bonds, syndicated, research, market update

Investment Grade Bond Research - June 7, 2019

Posted by Corey Mahoney on Jun 7, 2019 5:15:00 PM

INVESTMENT GRADE DEBT EDGED HIGHER as investors flee to safe-haven assets predicting the Fed will cut interest rates. BlackRock anticipates the Fed to cut rates “over the next few months” by 25-50 basis points following a weak employment report and continued trade tensions. Gold rose for the eighth straight session. The 10-year note sank 3.5 basis points. S&P+1.19%,DOW+1.16,NASDAQ+1.74%.

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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

High Yield Bond Research - June 7, 2019

Posted by Corey Mahoney on Jun 7, 2019 5:10:00 PM
INVESTMENT GRADE DEBT EDGED HIGHER as investors flee to   safe-haven assets  predicting the Fed will cut interest rates. BlackRock anticipates the Fed to cut rates “over the next few months”  by 25-50 basis points following   a  weak employment report  and continued trade tensions. Gold rose  for the eighth straight session. The 10-year note sank 3.5 basis points . S&P +1.19%, DOW +1.16, NASDAQ +1.74%.
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Topics: Investment Grade, Loans, Analytics, bonds, junk bonds, bond market, market analytics, New Issues, News, Syndicated Bonds, syndicated, research, market update

Investment Grade Bond Research - June 6, 2019

Posted by Corey Mahoney on Jun 6, 2019 5:18:02 PM

RISK-ON SENTIMENT PREVAILED THURSDAY following a report the U.S. is delaying tariffs on Mexican goods and a stable unemployment report contrary to ADP’s data on Wednesday.New claims fell by 2,500 as employers struggle to source labor in a tight market.The gap between the two and ten-year note narrowed by 4.4 basis points standing at 23 basis points. The 10-year note lost 0.2 basis points. S&P+0.79%, DOW +0.90, NASDAQ +0.66%.

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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

High Yield Bond Research - June 6, 2019

Posted by Corey Mahoney on Jun 6, 2019 5:15:16 PM
RISK-ON SENTIMENT PREVAILED THURSDAY following a report the U.S. is   delaying tariffs on Mexican goods  and a stable unemployment report contrary to ADP’s data on Wednesday. New claims fell by 2,500as employers   struggle to source labor  in a tight market. The gap between the two and ten-year note narrowed by 4.4 basis points standing at 23 basis points. The 10-year note lost 0.2 basis points . S&P+0.79%,  DOW +0.90,   NASDAQ  +0.66%.
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Topics: Investment Grade, Loans, Analytics, bonds, junk bonds, bond market, market analytics, New Issues, News, Syndicated Bonds, syndicated, research, market update

Investment Grade Bond Research - June 5, 2019

Posted by Corey Mahoney on Jun 5, 2019 5:20:36 PM

INVESTMENT GRADE DEBT ROSE AGAINST ITS HIGH YIELDING COUNTERPARTS in net prices linked to actual trades. Theservice sector carried the economy in May with a solid performance contrary to recent manufacturing and consumer spending reports. The Fed is overall pleased with the economy as it expanded at “a modest pace overall”showingresilience despite the escalation of trade tensions and a tight labor market. The 10-year note further dipped 2.2 basis points.  S&P +-0.54%, DOW +0.56, NASDAQ +0.35%. 

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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

High Yield Bond Research - June 5, 2019

Posted by Corey Mahoney on Jun 5, 2019 5:17:29 PM
INVESTMENT GRADE DEBT ROSE AGAINST ITS HIGH YIELDING COUNTERPARTS  in net prices linked to actual trades. The service sector carried the economy in May with a  solid performance contrary to recent manufacturing and consumer spending reports. The  Fed is overall pleased with the economy as it expanded at  “a modest pace overall” showing resilience despite the escalation of trade tensions  and a tight labor market. The 10-year note further dipped 2.2 basis points. S&P +0.54%, DOW +0.56, NASDAQ +0.35%. 
 
 
THE U.S. PRIVATE SECTOR ADDED A DISMAL 27,000 JOBS in the month of May according to an ADP report   substantially less than the estimated 173,000 new jobs.  Employers continue to struggle with sourcing labor,   “Labor shortages are impeding job growth, particularly at small companies, and layoffs at bricks-and-mortar retailers are hurting”.  The number of   Americans applying for a mortgage increased  last week amid   mortgage   rates falling to 17-month lows.  Underlining data revealed the spike in activity is due to homeowners   refinancing not homebuyers, refinances are up 33 percent year-over-year.   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,  Citigroup Inc. (USD) 4.125% 7/25/2028  made analysts' 'Conviction Buy' lists. (See the chart for   ADI indexes above.)  Corey Mahoney ( cmahoney@advantagedata.com).
 
Key Gainers and Losers Volume Leaders
+   Pacific Gas & Electric Co. 6.05% 3/1/2034 + 1.7%
  HCA Inc. 5.25% 4/15/2025 + 0.1%
-   GameStop Corp. 6.75% 3/15/2021 144A -1.5%
GameStop Corp.   6.75% 3/15/2021 Reg S
California Resources Corp.   8% 12/15/2022 144A
Industry Returns Tracker
Industry Past Day Past Week Past Month Past Quarter YTD Past Year
Agriculture, Forestry, Fishing 0.17% 0.29% -0.56% 1.21% 5.83% 7.34%
Mining 0.37% -1.11% -2.83% -0.41% 6.43% 1.36%
Construction 0.26% 0.03% -0.20% 3.25% 8.27% 6.38%
Manufacturing 0.38% -0.33% -1.23% 0.99% 6.75% 5.18%
Transportion, Communication, Electric/Gas 0.20% 0.26% -0.05% 2.72% 7.97% 7.25%
Wholesale 0.27% -0.14% -0.45% 1.44% 7.41% 5.00%
Retail 0.47% -0.01% -0.68% 4.05% 10.43% 9.38%
Finance, Insurance, Real-Estate 0.19% -0.12% -0.47% 1.96% 7.67% 7.16%
Services 0.31% -0.09% -0.28% 1.87% 8.06% 7.53%
Public Administration -0.29% -0.39% 0.01% 1.60% 6.84% 11.60%
Energy 0.30% -1.18% -2.83% -0.28% 6.10% 0.78%
 
Total returns (non-annualized) by rating, market weighted.
New Issues Forward Calendar

1. GCI Inc. (USD) 6.625% 6/15/2024 144A (06/04/2019): 325MM Senior Unsecured Notes, Price at Issuance 100, Yielding 6.625%.

2. GCI Inc. (USD) 6.625% 6/15/2024 Reg S (06/04/2019): 325MM Senior Unsecured Notes, Price at Issuance 100, Yielding 6.625%.

1. Nexstar Media Group Inc.: Possible new bonds, Expected Q3 2019

2. Diamondback Energy Inc.: High-yield notes, Expected Q2 2019

Additional Commentary

NEW ISSUANCE WATCH: on 6/5/19 participants welcome a $1250MM new corporate-bond offering by Sirius XM Radio Inc.   The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 5/31/19, with a net outflow of $1.3B, year-to-date $9.8B 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)
SuperValu Inc. (5Y Sen USD XR14)
San Miguel Corp. (5Y Sen USD CR14)

Loans and Credit Market Overview

SYNDICATED LOANS HIGHLIGHTS:

Deals recently freed for secondary trading, 
notable secondary activity: 
  • Packers Holdings, Charles Schwab Corp., Tundra Energy Marketing , Louis Dreyfus Corp.
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 06/05/19
  • Net positive capital flows into high-yield ETFs & mutual funds 

Copyright 2019 Advantage Data Inc. All Rights Reserved. http://www.advantagedata.com

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.

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

Investment Grade Bond Research - June 4, 2019

Posted by Corey Mahoney on Jun 5, 2019 8:48:07 AM

THE FEDERAL RESERVE INDICATED A POSSIBLE RATE CUT if trade tensions escalate and begin to hamper the economy.  Jerome Powell stressed, “We are closely monitoring the implications of these developments for the U.S. economic outlook and, as always, we will act as appropriate to sustain the expansion.”  Delivery of July West Texas Intermediate rose 0.54 percent reversing four straight sessions of declines.  Heightened global trade concerns and volatile markets caused crude to tumble as investors fear demand could be impacted.  The 10-year note further gained 5.8 basis points.  S&P+2.14%,DOW +2.06,NASDAQ+2.65%.

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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

High Yield Bond Research - June 4, 2019

Posted by Corey Mahoney on Jun 4, 2019 5:25:00 PM
THE FEDERAL RESERVE INDICATED A POSSIBLE RATE CUT  if trade tensions escalate and begin to   hamper the economy.  Jerome Powell stressed,  “We are closely monitoring the implications of these developments for the U.S. economic outlook and, as always, we will act as appropriate to sustain the expansion.”  Delivery of July   West Texas Intermediate  rose 0.54 percent reversing four straight sessions of declines.  Heightened global   trade concerns and volatile markets  caused crude to tumble as investors fear demand could be impacted.    The 10-year note further gained 5.8 basis points . S&P +2.14%, DOW +2.06, NASDAQ +2.65%.
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Topics: Investment Grade, Loans, Analytics, bonds, junk bonds, bond market, market analytics, New Issues, News, Syndicated Bonds, syndicated, research, market update


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