U.S. STOCKS FELL TODAY, but all three major indices remain near record highs. Despite news of above-expected job growth in June, many investors anticipate an interest-rate cut at the end of the month, driving stock prices up. 10-Year Treasury yields fell 1.5 basis points as global investors continue to move into U.S. Government Bonds. S&P -0.48%, DOW -0.43%, NASDAQ -0.78%.
IN THE CORPORATE BOND SPACE, Virginia Electric & Power Co. priced $500 million worth of senior unsecured notes. This announcement comes on what has otherwise been a
very quiet day for issuing corporate debt. The investment-grade notes have a coupon of 2.875% and mature on
July 15, 2029.
ADI proprietary index data showed a net
yield increment for high-yield versus high-grade bonds. High-yield edged out high-grade. Among high-yield bonds showing topmost price gains at appreciable volumes traded,
Pacific Gas & Electric Co. (USD) 2.45% 8/15/2022 made analysts' 'Conviction Buy' lists. (See the chart for
Pacific Gas & Electric Co. (USD) 2.45% 8/15/2022 below)
Andrew Robartes (
arobartes@advantagedata.com).
| Key Gainers and Losers |
Volume Leaders |
| + |
General Motors Co. 5.2% 4/1/2045 |
+ 2.3% |
| |
Avon Products Inc. 5% 3/15/2023 |
+ 0.3% |
| - |
CSC Hldg LLC 5.25% 6/1/2024 |
-0.3% |
| |
Western Digital Corp. 4.75% 2/15/2026 |
-0.3% |
|
Dish DBS Corp. 5.875% 11/15/2024
HCA Inc. 7.5% 2/15/2022
|
| Industry Returns Tracker |
| Industry |
Past Day |
Past Week |
Past Month |
Past Quarter |
YTD |
Past Year |
| Agriculture, Forestry, Fishing |
-0.12% |
0.29% |
5.43% |
5.87% |
12.28% |
14.36% |
| Mining |
-0.18% |
-0.14% |
1.10% |
-1.03% |
7.69% |
2.68% |
| Construction |
-0.18% |
0.13% |
2.12% |
3.49% |
10.92% |
8.90% |
| Manufacturing |
-0.17% |
0.17% |
1.89% |
2.16% |
9.23% |
7.96% |
| Transportion, Communication, Electric/Gas |
-0.21% |
0.07% |
1.96% |
3.18% |
10.07% |
9.34% |
| Wholesale |
-0.09% |
0.13% |
2.22% |
3.05% |
10.51% |
7.92% |
| Retail |
-0.22% |
0.11% |
1.90% |
3.77% |
12.26% |
9.63% |
| Finance, Insurance, Real-Estate |
-0.19% |
0.27% |
2.09% |
2.65% |
9.60% |
9.48% |
| Services |
-0.22% |
0.08% |
1.66% |
2.43% |
9.88% |
9.20% |
| Public Administration |
-0.18% |
0.23% |
2.92% |
4.12% |
10.09% |
14.17% |
| Energy |
-0.22% |
-0.07% |
1.10% |
-0.06% |
8.08% |
3.30% |
| |
| Total returns (non-annualized) by rating, market weighted. |
|
| New Issues |
Forward Calendar |
|
(None Current 07/08/2019)
|
1. Atlantica Tender Drilling Ltd: $140MM, Expected Q3 2019
2. Diamondback Energy Inc.: High-yield notes, Expected Q2 2019
|
Additional Commentary
NEW ISSUANCE WATCH: on 7/2/19 participants welcome a $243MM new corporate-bond offering by AAG FH LP/AAG FH Finco Inc. 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) |
Weatherford International LTD (5Y Sen USD XR14)
Hertz Corp. (5Y Sen USD CR14) |
Road King Infrastructure LTD (5Y Sen USD MR14)
Atmos Energy Corp. (5Y Sen USD MR14) |
Loans and Credit Market Overview
SYNDICATED LOANS HIGHLIGHTS:
Deals recently freed for secondary trading, notable secondary activity:
- Piaggio & C. SpA, Goshawk Aviation Ltd, Valence Surface Technologies
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 10 bp (basis points), as of 07/08/19
- Net positive capital flows into high-yield ETFs & mutual funds
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