High Yield Bond Research - August 15, 2019

Posted by Pierre Robert on Aug 15, 2019 5:00:02 PM
THE 10 YEAR TREASURY FELL TO 1.52. US stock exchanges were mixed. The inverted treasury curve issue has caused all markets to fall significantly. Similarly, the 10-Year Treasury note fell to 1.52%. S&P -0.15%, DOW +0.38%, NASDAQ -0.27%.
GE STOCKS AND BONDS TOOK A MAJOR HIT! Allegations of accounting fraud by Harry Markopolos drove GE way down. ADI proprietary index data showed a net yield increment for high-grade versus high-yield bondsHigh-grade edged out high-yield.  Among high-grade bonds showing topmost price gains at appreciable volumes traded, General Electric Co. (USD) 3.375% 3/11/2024 made analysts' 'Conviction Sell lists. (See the chart for General Electric Co. below) Pierre Robert
 
Key Gainers and Losers Volume Leaders
+   Teva Pharmaceutical Industries LTD 2.8% 7/21/2023 + 0.9%
  Petrobras Global Finance BV 6.85% 6/5/2115 + 0.1%
  Sprint Nextel Corp. 7.875% 9/15/2023 + 0.2%
-   Chesapeake Energy Corp. 8% 1/15/2025 -2.1%
  Western Digital Corp. 4.75% 2/15/2026 -0.5%
Teva Pharmaceutical Industries LTD   2.8% 7/21/2023
Pacific Gas & Electric Co.   6.05% 3/1/2034
Petrobras Global Finance BV   6.85% 6/5/2115
Industry Returns Tracker
Industry Past Day Past Week Past Month Past Quarter YTD Past Year
Agriculture, Forestry, Fishing -0.18% 0.65% -0.12% 5.95% 13.79% 14.61%
Mining -0.87% -0.55% -4.88% -5.14% 3.67% -1.67%
Construction -0.09% 0.20% 0.75% 3.71% 11.78% 9.14%
Manufacturing -0.23% 0.25% 0.03% 2.30% 9.79% 7.39%
Transportion, Communication, Electric/Gas -0.21% 0.33% 0.73% 4.02% 11.71% 9.12%
Wholesale -0.30% -0.09% -0.42% 2.31% 10.36% 6.55%
Retail -0.47% 0.10% -0.32% 2.07% 12.26% 8.88%
Finance, Insurance, Real-Estate -0.15% 0.20% 0.69% 3.42% 11.30% 9.79%
Services -0.33% 0.20% 0.34% 2.99% 10.69% 8.53%
Public Administration 0.02% 0.32% 1.54% 5.06% 12.07% 14.02%
Energy -0.74% -0.37% -4.23% -4.01% 4.66% -0.27%
 
Total returns (non-annualized) by rating, market weighted.

unnamed - 2019-08-15T165753.058

New Issues Forward Calendar



(None Current 08/15/2019)

 

1. Sinclair Broadcast Group Inc.: $2.55B, seven-year senior secured notes; $2.325B eight year senior unsecured notes

2. Twinset Spa: ¬170M 5 year senior secured floating-rate notes, Expected Q3 2019

Additional Commentary


NEW ISSUANCE WATCH: on 08/13/19 participants welcome a $750MM new corporate-bond offering by
iHeartCommunications Inc.. The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 8/9/19, with a net outflow of  since October 2018.
 
Top Widening Credit Default Swaps (CDS) Top Narrowing Credit Default Swaps (CDS)
Rite Aid Corp. (5Y Sen USD MR14)
Weatherford International LTD (5Y Sen USD MR14)
Hertz Corp. (5Y Sen USD CR14)
Road King Infrastructure LTD (5Y Sen USD CR14)
SuperValu Inc. (5Y Sen USD MR14)

unnamed - 2019-08-01T153117.188

Loans and Credit Market Overview


SYNDICATED LOANS HIGHLIGHTS:

Deals recently freed for secondary trading, 
notable secondary activity: 
  • Duerre Group, Albertsons LLC, Helical PLC, London Stock Exchange Group PLC
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 was 23 bp (basis points), as of 08/15/19
  • Net positive capital flows into high-yield ETFs & mutual funds 

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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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