SAFE-HAVEN ASSETS ROSE against junk bonds in net prices linked to actual trades once again driving the 10-year note below 2 percent.  Gold rallies Tuesday following its sharpest daily drop in more than a year “as global slowdown worries are growing” among the markets.  Investors anxiously await payroll figures to be released on Friday after Independence Day on Thursday to decide on their risk appetite.  The 10-year note sank 4.8 basis points. S&P +0.29%, DOW +0.26, NASDAQ +0.22%

CRUDE OIL PLUMMETED MORE THAN 4 PERCENT on demand concerns despite OPEC extending production cuts into 2020.  Investors fear sluggish manufacturing will impact oil demand, August crude declined 4.64 percent settling at $56.39 per barrel.  “Increasing indications of global economic slowing remain as the larger negative pricing consideration to the energy complex and OPEC’s need to extend production cuts even further would appear to attest to slowing economic growth paths.” 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,   HJ Heinz Co. (USD) 2.85% 3/1/2022 made analysts' 'Conviction Buy' lists. (See the chart for ADI indexes above) Corey Mahoney (cmahoney@advantagedata.com).

 

Key Gainers and Losers	Volume Leaders
+   Goldman Sachs Group Inc. 5% PERP + 0.2%   Equinix Inc. 5.375% 5/15/2027 + 0.2% -   Western Digital Corp. 4.75% 2/15/2026 -0.1%	Altice SA   7.625% 2/15/2025 144A CNO Financial Group   5.25% 5/30/2029

Industry Returns Tracker

Industry Past Day Past Week Past Month Past Quarter YTD Past Year Agriculture, Forestry, Fishing -0.05% 0.32% 5.81% 5.95% 12.06% 14.14% Mining 0.11% 0.22% 1.42% -0.34% 8.16% 3.08% Construction 0.14% 0.03% 2.71% 3.65% 10.95% 9.23% Manufacturing 0.14% 0.17% 2.58% 2.44% 9.21% 7.85% Transportion, Communication, Electric/Gas 0.15% 0.01% 2.45% 3.57% 10.07% 9.42% Wholesale 0.00% 0.03% 2.57% 3.12% 10.42% 7.64% Retail 0.22% 0.17% 2.63% 4.34% 12.29% 9.35% Finance, Insurance, Real-Estate 0.11% 0.03% 2.34% 3.02% 10.15% 9.59% Services 0.12% -0.16% 2.25% 2.83% 10.00% 9.01% Public Administration -0.39% 0.12% 2.30% 3.49% 9.45% 14.29% Energy 0.11% 0.15% 1.36% 0.40% 8.27% 3.62%   Total returns (non-annualized) by rating, market weighted.

New Issues	Forward Calendar
1. CSC Holdings LLC (USD) 5.75% 1/15/2030 144A (07/01/2019):1000MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5.75%. 2. CSC Holdings LLC (USD) 5.75% 1/15/2030 Reg S (07/01/2019):1000MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5.75%.	1. Atlantica Tender Drilling Ltd: $140MM, Expected Q3 2019 2. Alpha Auto Group: $225MM, Expected Week of 6/24

NEW ISSUANCE WATCH: on 7/1/19 participants welcome a $1000MM new corporate-bond offering by CSC Holdings LLC. The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 6/21/19, with a net outflow of $602MM, year-to-date $8.9B flowed into high-yield.

 

Top Widening Credit Default Swaps (CDS)	Top Narrowing Credit Default Swaps (CDS)
Hertz Corp. (5Y Sen USD XR14) Hovnanian Enterprises Inc. (5Y Sen USD XR14)	Cable & Wireless Communication (5Y Sen USD CR14) San Miguel Corp. (5Y Sen USD CR14)

Loans and Credit Market Overview

SYNDICATED LOANS HIGHLIGHTS:

Deals recently freed for secondary trading, notable secondary activity: 

• Valence Surface Technologies, Moneygram Intl. Inc., Vici Properties LLC, Vidrala SA

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 22 bp (basis points), as of 07/02/19
• Net positive capital flows into high-yield ETFs & mutual funds 

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