U.S. STOCKS RECOVERED SOME LOSSES FRIDAY despite trade talks with China failing to reach a deal. Of the three major indices, the tech-heavy NASDAQ produced the smallest gains as a result of its exposure to China, closing up 0.08%. 10-Year U.S. Treasury yields rose 2.5 basis points. S&P +0.37%, Dow +0.44%, NASDAQ +0.08%.
UBER DISAPPOINTED IN TODAY’S HIGHLY anticipated initial public offering. The San Francisco-based ride service company
closed at $41.57 per share, down from its IPO price of $45. Uber executives are confident the company will prevail despite volatility.
In the corporate bond market, Bausch Health Companies Inc. priced $1.5B in senior unsecured notes. The company plans to use the proceeds to repurchase principal across their existing notes. Bausch Health reported strong results in Q1 and
analysts foresee the potential for more growth. 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,
Apple Inc. (USD) 3.45% 2/9/2045 made analysts' 'Conviction Buy' lists. (See the chart for
ADI Inedexes above.)
Andrew Robartes (
arobartes@advantagedata.com).
| Key Gainers and Losers |
Volume Leaders |
| + |
Wachovia Capital Trust III FLT% 3/15/2042 |
+ 0.1% |
| |
Goodyear Tire & Rubber Co. 5% 5/31/2026 |
+ 2.7% |
| - |
Petrobras Global Finance BV 7.375% 1/17/2027 |
-0.7% |
|
Frontier Communications Corp. 11% 9/15/2025
Discover Financial Services 3.85% 11/21/2022
|
| Industry Returns Tracker |
| Industry |
Past Day |
Past Week |
Past Month |
Past Quarter |
YTD |
Past Year |
| Agriculture, Forestry, Fishing |
-0.05% |
-0.84% |
-0.72% |
3.08% |
5.38% |
7.66% |
| Mining |
-0.29% |
-0.50% |
-0.02% |
2.93% |
9.03% |
4.31% |
| Construction |
-0.19% |
-0.57% |
0.57% |
4.46% |
8.20% |
5.64% |
| Manufacturing |
-0.21% |
-0.42% |
0.32% |
3.23% |
7.41% |
6.38% |
| Transportion, Communication, Electric/Gas |
-0.24% |
-0.32% |
0.63% |
4.19% |
7.69% |
7.05% |
| Wholesale |
-0.17% |
-0.29% |
0.63% |
3.20% |
7.75% |
5.20% |
| Retail |
-0.24% |
-0.29% |
1.71% |
4.72% |
10.29% |
7.30% |
| Finance, Insurance, Real-Estate |
-0.12% |
-0.26% |
0.51% |
3.25% |
7.66% |
7.02% |
| Services |
-0.22% |
-0.36% |
0.24% |
3.20% |
7.96% |
7.62% |
| Public Administration |
0.02% |
0.26% |
0.46% |
3.02% |
5.70% |
9.83% |
| Energy |
-0.30% |
-0.58% |
0.13% |
2.79% |
8.70% |
3.57% |
| |
| Total returns (non-annualized) by rating, market weighted. |
|
| New Issues |
Forward Calendar |
|
1. Bausch Health Companies Inc. (USD) 7.25% 5/30/2029 144A (05/10/2019): 750MM Senior Unsecured Notes, Price at Issuance 100, Yielding 7.25%.
2. Century Communities Inc. (USD) 6.75% 6/1/2027 Reg S (05/10/2019): 500MM Senior Unsecured Notes, Price at Issuance 100, Yielding 6.75%.
|
1. Diamondback Energy Inc.: High-yield notes, Expected Q2 2019
2. Harsco Corp.: Unsecured Debt, Expected Q3 2019
|
Additional Commentary
NEW ISSUANCE WATCH: on 5/10/19 participants welcome a $190MM new corporate-bond offering by Williams Scotsman International Inc. The most recent data showed money flowed into high-yield ETFs/mutual funds for the week ended 5/03/19, with a net inflow of $21.3MM, year-to-date $13.9B flowed into high-yield.
| Top Widening Credit Default Swaps (CDS) |
Top Narrowing Credit Default Swaps (CDS) |
Rite Aid Corp. (5Y Sen USD XR14)
Weatherford International LTD (5Y Sen USD MR14) |
Road King Infrastructure LTD (5Y Sen USD MR14)
Cable & Wireless Communication (5Y Sen USD CR14) |
Loans and Credit Market Overview
SYNDICATED LOANS HIGHLIGHTS:
Deals recently freed for secondary trading, notable secondary activity:
- Hargray Communications Group Inc., Rikshem AB, Broadcom LTD, Verifone Inc.
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 12 bp (basis points), as of 05/10/19
- Net positive capital flows into high-yield ETFs & mutual funds
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