U.S. STOCKS RECOVERED LOSSES WEDNESDAY after news broke that the White House plans to delay an auto tariffs decision by up to six months. The news was well received in the equities market, which has been turbulent for the better part of the last two weeks. The technology sector performed particularly well today as the NASDAQ rose 1.13%. 10-Year U.S. Treasury Yields fell 3.4 basis points. S&P +0.58%, Dow +0.45%, NASDAQ +1.13%.

 

IN THE CORPORATE BOND SPACE, Waste Management Inc. recently priced $4 billion worth of senior unsecured notes. Waste Management plans to use the proceeds to partially fund the acquisition of Advanced Disposal Services Inc. The notes received ratings of Baa1 and A- by Moody’s and Standard & Poor’s respectively. North America’s leading provider of comprehensive waste management environmental services also recently announced a quarterly cash dividend to shareholders payable June 21, 2019. 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, General Motors Co. (USD) 6.75% 4/1/2046 made analysts' 'Conviction Buy' lists. (See the chart for ADI indixes above.) Andrew Robartes (arobartes@advantagedata.com).

 

Key Gainers and Losers	Volume Leaders
+   General Motors Co. 6.75% 4/1/2046 + 4.5%   Charter Communications Operating LLC 5.75% 4/1/2048 + 0.4% -   Communications Sales & Leasing Inc. 8.25% 10/15/2023 -1.9%	Sesi LLC   7.125% 12/15/2021 (1) Pacific Gas & Electric Co.   6.05% 3/1/2034

Industry Returns Tracker

Industry Past Day Past Week Past Month Past Quarter YTD Past Year Agriculture, Forestry, Fishing -0.01% -1.05% -1.65% 2.30% 5.33% 6.41% Mining 0.12% -0.83% -1.50% 1.54% 8.13% 2.35% Construction 0.10% -0.43% 0.01% 3.84% 7.98% 5.32% Manufacturing 0.06% -0.63% -0.37% 2.55% 7.02% 5.86% Transportion, Communication, Electric/Gas 0.14% -0.67% -0.32% 3.28% 7.10% 6.67% Wholesale 0.01% -0.36% 0.19% 2.77% 7.76% 5.47% Retail 0.02% -0.78% 0.49% 4.32% 10.36% 8.33% Finance, Insurance, Real-Estate 0.03% -0.39% 0.00% 2.71% 7.39% 6.54% Services 0.10% -0.45% -0.49% 2.40% 7.30% 7.14% Public Administration -0.09% -0.19% 0.84% 3.63% 6.67% 12.52% Energy 0.11% -1.07% -1.66% 1.42% 7.77% 1.63%   Total returns (non-annualized) by rating, market weighted.

New Issues	Forward Calendar
1. Vistajet Malta Finance PLC (USD) 10.5% 6/1/2024 144A (05/14/2019): 550MM Senior Unsecured Notes, Price at Issuance 98.113, Yielding 10.99%.	1. Nexstar Media Group Inc.: Possible new bonds, Expected Q3 2019 2. Calpine Corp.: $1.4B bonds, Expected Q2 2019

NEW ISSUANCE WATCH: on 5/14/19 participants welcome a $550MM new corporate-bond offering by Vistajet Malta Finance PLC. The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 5/10/19, with a net outflow of $212MM, year-to-date $13.6B 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: 

• Medallion Midland Acquisition, Eldorado Gold Corp., Oryx Midstream

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 14 bp (basis points), as of 05/15/19
• Net positive capital flows into high-yield ETFs & mutual funds 

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