INITIAL JOBLESS CLAIMS HIT NEARLY a 50 year low last week falling by 8,000 indicating
the labor market remains resilient despite soft economic data; claims fell below 200,000 for the first time since 1969. U.S. producer prices increased 0.6 percent in March
surpassing estimates of 0.3 percent further alleviating fears of a recession. Guggenheim provides assurance the next recession will be mild compared to previous recent recessions,
“Our work shows that when recessions hit, the severity of the downturn has a relatively minor impact on the magnitude of the associated bear market in stocks”. ADI proprietary index data showed a net
yield increment for high-yield versus high-grade bonds. High-yield edged out high-grade. Among high-yield bonds showing topmost price gains at appreciable volumes traded,
HCA Inc. (USD) 5.875% 3/15/2022 made analysts' 'Conviction Buy' lists. (See the chart for
HCA Inc. bonds below.)
Corey Mahoney cmahoney@advantagedata.com).
NEW ISSUANCE WATCH: on 4/09/19 participants welcome a $750MM new corporate-bond offering by
Golden Entertainment Inc. The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 4/5/19, with a net inflow of $2.0B, year-to-date $12.0B flowed into high-yield.
Loans and Credit Market Overview
SYNDICATED LOANS HIGHLIGHTS:
Deals recently freed for secondary trading, notable secondary activity:
- Six Flags Inc., MW Industries Inc., Ultimate Software Group, Crossamerica Partners LP
OVERALL CREDIT MARKET:
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 19 bp (basis points), as of 04/11/19
- Net positive capital flows into high-yield ETFs & mutual funds
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