US STOCKS FELL TODAY as investors continue to weigh concerns over the strength of the economy. Today’s drop comes after three straight days of growth. The 10-year Treasury note fell 5.6 basis points to 1.553%. S&P -0.79%, DOW -0.66%, NASDAQ -0.68%.
IN THE CORPORATE BOND SPACE, Roper Technologies, Inc. recently priced $1.2 billion worth of senior unsecured notes. The bonds are available in two separate tranches, yielding 2.35% and 2.95%. The tech company intends to use the proceeds for general corporate purposes and acquisitions. ADI proprietary index data showed a net yield increment for high-grade versus high-yield bonds. High-grade edged out high-yield. Among high-grade bonds showing topmost price gains at appreciable volumes traded, San Diego Gas & Electric Company (USD) 5.35% 5/15/2035 made analysts' 'Conviction Buy' list. (See the chart for San Diego Gas & Electric Company (USD) 5.35% 5/15/2035 below) Andrew Robartes
| Key Gainers and Losers |
Volume Leaders |
| + |
Bayer US Finance LLC 4.375% 12/15/2028 144A |
+ 1.8% |
| |
Wal-Mart Stores Inc. 3.125% 6/23/2021 |
+ 0.1% |
| - |
Oracle Corp. 3.25% 11/15/2027 |
-0.1% |
| |
Goldman Sachs Group Inc. FLT% 10/28/2027 |
-0.1% |
|
Bayer US Finance LLC 4.375% 12/15/2028 144A
Boston Pptys LTD Partnership 5.625% 11/15/2020
|
| Industry Returns Tracker |
| Industry |
Past Day |
Past Week |
Past Month |
Past Quarter |
YTD |
Past Year |
| Agriculture, Forestry, Fishing |
-0.03% |
0.25% |
1.21% |
3.19% |
9.89% |
9.67% |
| Mining |
-0.38% |
0.34% |
2.00% |
4.65% |
11.22% |
9.68% |
| Construction |
-0.34% |
0.22% |
2.46% |
5.87% |
9.57% |
9.19% |
| Manufacturing |
-0.27% |
0.59% |
2.78% |
6.13% |
10.86% |
9.80% |
| Transportion, Communication, Electric/Gas |
-0.45% |
0.41% |
3.61% |
7.57% |
13.93% |
12.86% |
| Wholesale |
-0.23% |
0.40% |
1.96% |
4.94% |
11.26% |
9.93% |
| Retail |
-0.36% |
0.44% |
3.16% |
6.79% |
11.92% |
11.20% |
| Finance, Insurance, Real-Estate |
-0.19% |
0.33% |
2.06% |
4.48% |
9.15% |
9.28% |
| Services |
-0.28% |
0.62% |
2.99% |
6.19% |
10.92% |
10.60% |
| Public Administration |
-0.12% |
0.43% |
1.31% |
2.77% |
4.73% |
6.02% |
| Energy |
-0.40% |
0.24% |
2.07% |
4.93% |
11.64% |
10.06% |
| |
| Total returns (non-annualized) by rating, market weighted. |
|
| New Issues |
New Issues [Continued] |
|
1. Roper Technologies Inc. (USD) 2.35% 9/15/2024 (08/19/2019):500MM Senior Unsecured Notes, Price at Issuance 99.815, Yielding 2.39%.
2. 3M Co. (USD) 2.375% 8/26/2029 (08/19/2019): 1000MM Senior Unsecured Notes, Price at Issuance 98.918, Yielding 2.5%.
|
|
Additional Commentary
NEW ISSUANCE WATCH: on 8/20/19 participants welcome $150 million in new corporate-bond offerings by Rochester Gas & Electric Co.
The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 8/9/19, with a net outflow of $4 billion since October 2018.
| 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 CR14)
SuperValu Inc. (5Y Sen USD XR14) |
Loans and Credit Market Overview
SYNDICATED LOANS HIGHLIGHTS:
Deals recently freed for secondary trading, notable secondary activity:
- US Foods Inc., Duerre Group, Albertsons LLC, Helical PLC
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 was 26 bp (basis points), as of 08/20/19
- Net positive capital flows into high-yield ETFs & mutual funds
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