US STOCKS FELL TODAY as investors continue to weigh concerns over the strength of the economy. Today’s drop comes after three straight days of growth. The 10-year Treasury note fell 5.6 basis points to 1.553%. S&P -0.79%, DOW -0.66%, NASDAQ -0.68%.
IN THE CORPORATE BOND SPACE, Roper Technologies, Inc. recently priced $1.2 billion worth of senior unsecured notes. The bonds are available in two separate tranches, yielding 2.35% and 2.95%. The tech company intends to use the proceeds for general corporate purposes and acquisitions. ADI proprietary index data showed a net yield increment for high-grade versus high-yield bonds. High-grade edged out high-yield. Among high-grade bonds showing topmost price gains at appreciable volumes traded, San Diego Gas & Electric Company (USD) 5.35% 5/15/2035 made analysts' 'Conviction Buy' list. (See the chart for ADI Indices above) Andrew Robartes
| Key Gainers and Losers |
Volume Leaders |
| + |
Teva Pharmaceutical Industries LTD 4.1% 10/1/2046 |
+ 4.5% |
| |
RR Donnelley & Sons Co. 7.875% 3/15/2021 |
+ 0.5% |
| |
MGM Resorts Intl 7.75% 3/15/2022 |
+ 0.3% |
| - |
Petrobras Global Finance BV 7.375% 1/17/2027 |
-1.9% |
| |
Petrobras Global Finance BV 8.75% 5/23/2026 |
-0.6% |
|
Teva Pharmaceutical Industries LTD 4.1% 10/1/2046
RR Donnelley & Sons Co. 7.875% 3/15/2021
|
| Industry Returns Tracker |
| Industry |
Past Day |
Past Week |
Past Month |
Past Quarter |
YTD |
Past Year |
| Agriculture, Forestry, Fishing |
0.06% |
-0.31% |
-0.14% |
6.72% |
12.37% |
13.05% |
| Mining |
0.21% |
-0.81% |
-3.66% |
-5.55% |
3.48% |
-1.69% |
| Construction |
0.15% |
0.37% |
1.05% |
4.08% |
12.56% |
9.65% |
| Manufacturing |
0.11% |
0.03% |
0.11% |
1.71% |
9.06% |
6.67% |
| Transportion, Communication, Electric/Gas |
0.08% |
0.29% |
1.13% |
4.21% |
12.04% |
9.63% |
| Wholesale |
0.14% |
-0.08% |
-0.16% |
2.10% |
10.70% |
6.80% |
| Retail |
0.07% |
0.13% |
0.21% |
2.40% |
12.74% |
9.49% |
| Finance, Insurance, Real-Estate |
0.07% |
0.13% |
0.85% |
3.77% |
11.67% |
9.69% |
| Services |
0.15% |
0.11% |
0.47% |
2.77% |
10.45% |
8.27% |
| Public Administration |
0.32% |
0.52% |
2.26% |
5.36% |
12.73% |
15.21% |
| Energy |
0.13% |
-0.65% |
-3.23% |
-4.45% |
4.45% |
-0.45% |
| |
| Total returns (non-annualized) by rating, market weighted. |
|
| New Issues |
Forward Calendar |
|
(None Current 08/20/2019)
|
1. Sinclair Broadcast Group Inc.: $2.55B, seven-year senior secured notes; $2.325B eight year senior unsecured notes
2. Calpine Corp.: $1.4B bonds, Expected Q3 2019
|
Additional Commentary
NEW ISSUANCE WATCH: on 08/13/19 participants welcome a $2.1B new corporate-bond offering by
Tenet Healthcare Corp. 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 XR14)
Hovnanian Enterprises Inc. (5Y Sen USD MR14) |
Ghana, Republic of (5Y Sen USD CR14)
SuperValu Inc. (5Y Sen USD MR14) |
Loans and Credit Market Overview
SYNDICATED LOANS HIGHLIGHTS:
Deals recently freed for secondary trading, notable secondary activity:
- US Foods Inc., Duerre Group, Albertsons LLC, Helical 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 26 bp (basis points), as of 08/20/19
- Net positive capital flows into high-yield ETFs & mutual funds
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