Investment Grade Bond Research - August 22, 2019

Posted by Pierre Robert on Aug 26, 2019 4:45:32 PM

GOVERNMENT BONDS yields rebounded in Europe with the exception of Italy whose government collapsed amid their ongoing budget debate. Stock markets were also mixed to lower. The 10-year Treasury note rose 1.8 basis points to 1.577%. S&P +0.79%, DOW +0.91%, NASDAQ +0.88%.

ANTERO RESOURCES loses double due to the volitile gas and oil inductry.  ADI proprietary index data showed a net yield increment for high-grade versus high-yield bondsHigh-grade edged out high-yield. Among high-grade bonds showing topmost price gains at appreciable volumes traded, made analysts' 'Conviction Buy' list. (See the chart below for ANTERO RESOURCES) Pierre Robert
Key Gainers and Losers Volume Leaders
+   Apple Inc. 2% 5/6/2020 + 0.0%
  Energy Transfer Partners LP 6.25% 4/15/2049 + 0.3%
-   HSBC Hldg PLC 3.262% 3/13/2023 -0.1%
  CVS Health Corp. 5.05% 3/25/2048 -0.4%
HSBC Hldg PLC   3.262% 3/13/2023
State Street Corp.   VAR% 12/31/2049
Industry Returns Tracker
Industry Past Day Past Week Past Month Past Quarter YTD Past Year
Agriculture, Forestry, Fishing -0.23% 0.07% 0.95% 3.11% 9.62% 9.32%
Mining 0.04% 0.20% 2.60% 5.65% 11.94% 10.46%
Construction -0.07% -0.01% 2.81% 6.68% 10.56% 9.42%
Manufacturing -0.04% 0.25% 2.97% 6.49% 10.91% 9.83%
Transportion, Communication, Electric/Gas -0.04% 0.04% 3.85% 8.06% 13.95% 13.30%
Wholesale 0.02% 0.20% 2.29% 5.51% 11.71% 10.15%
Retail 0.00% 0.30% 3.44% 7.20% 11.90% 10.98%
Finance, Insurance, Real-Estate -0.09% 0.11% 2.16% 4.77% 9.20% 9.25%
Services -0.03% 0.30% 3.22% 6.66% 11.02% 10.52%
Public Administration -0.11% 0.14% 1.29% 2.78% 4.72% 5.86%
Energy 0.05% 0.14% 2.56% 5.73% 12.14% 11.93%
Total returns (non-annualized) by rating, market weighted.

unnamed - 2019-08-26T164154.823

New Issues New Issues [Continued]

1. Bank of America Corp. (USD) 2.4% 8/23/2024 (08/21/2019): 50MM Senior Unsecured Notes, Price at Issuance 100, Yielding 2.4%.


Additional Commentary

NEW ISSUANCE WATCH: on 8/21/19 participants welcome $50 million in new corporate-bond offerings by Bank of America Corp. 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 MR14)
Hertz Corp. (5Y Sen USD CR14)
Ghana, Republic of (5Y Sen USD CR14)
Road King Infrastructure LTD (5Y Sen USD CR14)
SuperValu Inc. (5Y Sen USD MR14)

unnamed - 2019-08-01T153123.074

Loans and Credit Market Overview


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 24 bp (basis points), as of 08/21/19
  • Net positive capital flows into high-yield ETFs & mutual funds

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Topics: High Yield, Investment Grade, Loans, Analytics, bonds, junk bonds, bond market, market analytics, New Issues, Finance, Fixed Income, News, Syndicated Bonds, syndicated, research, market update

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