JOBLESS CLAIMS RISE MARGINALLY IN OCTOBER ticking higher by 4,000 applications during the week end of October 11th. A General Motors strike caused a slight increase of claims in Ohio and Michigan however, the impact won’t be seen until the end of the month. United Auto Workers, the General Motors Union delivered a tentative deal including the closure of multiple U.S. plants and a “ratification” bonus to union members. High-yield edged out high-grade. Among high-grade bonds showing topmost price gains at appreciable volumes traded, L Brands Inc. (USD) 6.875% 11/1/2035 analysts' 'Conviction Buy' list (See the chart below for L Brands Inc. bonds.) Corey Mahoney
| Key Gainers and Losers | Volume Leaders | ||||||||||||
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Gulfport Energy Corp. 6.625% 5/1/2023 Intelsat Luxembourg SA 8.125% 6/1/2023 |
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| New Issues | Forward Calendar |
|---|---|
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1. CCO Holdings LLC (USD) 4.75% 3/1/2030 (10/16/2019): 500MM Senior Unsecured Notes, Price at Issuance 101.25, Yielding 4.6%. 2. Motion Bondco Designated Activity Company (USD) 6.625% 11/15/2027 Reg S (10/16/2019): 410MM Secured Notes, Price at Issuance 100, Yielding 6.63%. |
1. Qmax Financial Holdings Inc.: $225MM, Expected 4th Quarter 2019 |
Additional Commentary
Truckpro Inc. The most recent data showed a money flowed out of highyoutflow ETF/mutual funds for the week ended 9/27/2019, with a net outflow of $258 million.
| Top Widening Credit Default Swaps (CDS) | Top Narrowing Credit Default Swaps (CDS) |
| Rite Aid Corp. (5Y Sen USD MR14) Hertz Corp. (5Y Sen USD CR14) |
Ghana, Republic of (5Y Sen USD CR14) Export Credit Bank of Turkey (5Y Sen USD CR14) |
Loans and Credit Market Overview
SYNDICATED LOANS HIGHLIGHTS:Deals recently freed for secondary trading, notable secondary activity:
- Live Nation Entertainment Inc., Berry Plastics Corp., Raytheon Co., Shearer's Foods Inc.
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 35 bp (basis points), as of 10/17/19
- Net positive capital flows into high-yield ETFs & mutual funds
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