U.S. DURABLE GOODS ORDERS SURGED BY 2 PERCENT IN JUNE largely due to an increase in civilian aircraft orders. Core capital goods orders rose 1.9 percent on year-over-year basis suggesting the economy is picking up steam after two months of weak data. “The U.S. economy is stronger todaybecause the rest of the world is in a recession. That’s not the way it’s supposed to work, but that’s the way it’s working now. Because the rest of the world is in a recession, our interest rates are scraping bottom. And because our interest rates are scraping bottom, our economy is actually doing pretty darn well,” said Todd Buchholz, former White House director of economic policy under President George H.W. Bush  “Eighty-eight percent of our economy has pretty much nothing at all to do with exports or imports.”

Key Gainers and Losers	Volume Leaders
+   Sprint Corp. 7.625% 3/1/2026 + 0.9%   Tenet Healthcare Corp. 0% 6/15/2023 + 0.6% -   Goodyear Tire & Rubber Co. 5% 5/31/2026 -0.1%	Sprint Nextel Corp.   7.875% 9/15/2023 Washington Prime Group LP   5.95% 8/15/2024

Industry Returns Tracker

Industry Past Day Past Week Past Month Past Quarter YTD Past Year Agriculture, Forestry, Fishing -0.02% -0.02% 0.59% 5.94% 11.37% 10.67% Mining -0.07% 0.27% -1.25% -4.11% 5.75% 0.04% Construction -0.01% 0.29% 0.82% 3.23% 11.46% 9.20% Manufacturing 0.01% 0.08% 0.18% 1.71% 9.47% 7.55% Transportion, Communication, Electric/Gas 0.04% 0.66% 0.87% 3.36% 11.06% 9.28% Wholesale 0.03% 0.30% 0.64% 2.45% 11.15% 7.51% Retail 0.01% 0.26% 0.58% 2.79% 12.53% 9.69% Finance, Insurance, Real-Estate 0.02% 0.34% 1.08% 3.07% 10.97% 9.36% Services 0.00% 0.27% 0.50% 2.51% 10.07% 8.57% Public Administration 0.22% 0.43% 1.45% 4.64% 11.02% 12.73% Energy -0.05% 0.13% -1.08% -3.16% 6.35% 0.95%   Total returns (non-annualized) by rating, market weighted.

New Issues	Forward Calendar
1. Mong Duong Finance Hldg BV (USD) 5.125% 5/7/2029 144A (07/25/2019): 678MM First Lien Notes, Price at Issuance 100, Yielding 5.13%.	1. Sinclair Broadcast Group Inc.: $2.55B, seven-year senior secured notes; $2.325B eight year senior unsecured notes 2. DDM Holding AG: ¬100MM, Expected Q3 2019

NEW ISSUANCE WATCH: on 7/24/19 participants welcome a $1250MM new corporate-bond offering by JBS USA LLC.  The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 7/19/19, with a net inflow of $570MM, six week total $7.4B 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 MR14)	SuperValu Inc. (5Y Sen USD MR14) San Miguel Corp. (5Y Sen USD CR14)

Loans and Credit Market Overview

SYNDICATED LOANS HIGHLIGHTS:

Deals recently freed for secondary trading, notable secondary activity: 

• Nascar Holdings Inc., NGPL Pipeco LLC, Whatabrands LLC, Electricite de France

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 16 bp (basis points), as of 07/26/19
• Net positive capital flows into high-yield ETFs & mutual funds 

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