High Yield Bond Research - August 23, 2019

Posted by Pierre Robert on Aug 26, 2019 4:51:38 PM
THE WHITE HOUSE DECISION TO URGE all US companies to abandon China and the downward spiraling of US/China relationship has caused bonds and stocks to sharply drop. Stock markets were lower. The 10-year Treasury note rose 3.3 basis points to 1.61%. S&P -0.05%, DOW +0.19%, NASDAQ -0.36%. 
ANTERO RESOURCES loses double due to the volitile gas and oil inductry.  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, made analysts' 'Conviction Buy' list. (See the chart below for ANTERO RESOURCES) Pierre Robert
Key Gainers and Losers Volume Leaders
+   Vodafone Group PLC 7% 4/4/2079 + 0.5%
  Bahia SUL Hldgs Gmbh 5.75% 7/14/2026 + 0.1%
-   Petrobras Global Finance BV 8.75% 5/23/2026 -0.5%
  General Motors Financial Co. Inc. 5.75% PERP -0.5%
Petrobras Global Finance BV   8.75% 5/23/2026
Antero Resources Finance Corp.   5.375% 11/1/2021
Industry Returns Tracker
Industry Past Day Past Week Past Month Past Quarter YTD Past Year
Agriculture, Forestry, Fishing -0.01% 0.05% 0.06% 6.74% 12.46% 13.08%
Mining 0.25% 1.21% -2.65% -3.94% 4.79% -0.39%
Construction 0.03% 0.49% 1.17% 4.34% 12.69% 9.71%
Manufacturing 0.08% 0.80% 0.74% 2.27% 9.77% 6.98%
Transportion, Communication, Electric/Gas 0.07% 0.58% 0.89% 3.98% 12.16% 8.76%
Wholesale 0.10% 0.47% 0.09% 2.43% 11.27% 6.91%
Retail 0.07% 0.52% 0.09% 2.75% 12.97% 9.33%
Finance, Insurance, Real-Estate 0.05% 0.47% 0.98% 3.73% 11.78% 9.67%
Services 0.12% 0.84% 0.90% 3.11% 11.18% 8.66%
Public Administration -0.18% 0.42% 2.26% 5.15% 12.67% 15.08%
Energy 0.24% 1.01% -1.86% -2.78% 5.96% 0.78%
Total returns (non-annualized) by rating, market weighted.

unnamed - 2019-08-26T164154.823

New Issues Forward Calendar

(None Current 08/23/2019)


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

2. Atlantica Tender Drilling Ltd: $140MM, 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)
Hertz Corp. (5Y Sen USD XR14)
Ghana, Republic of (5Y Sen USD CR14)
SuperValu Inc. (5Y Sen USD MR14)

unnamed - 2019-08-01T153117.188

Loans and Credit Market Overview


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 18 bp (basis points), as of 08/22/19
  • 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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