U.S. MONEY MARKET FUND ASSETS retreat from decade highs as investors pause pouring money into these low-risk assets. The spread between the 3 month T-bill and 10-year note widened to 55 basis points, levels not seen since 2007. The 10-year note shed 0.1 basis points. S&P +0.57%, DOW +0.88, NASDAQ +0.35%.

CRUDE OIL SUPPLIES CLIMB 2 PERCENT FOLLOWING a significant drop in weekly supplies, WTI Crude settled at $55.84 per barrel. “The ongoing trend of narrowing net imports has yielded a massive draw to crude stocks, with imports dropping below 6 million barrels per day, and exports jumping above 3 million barrels per day.” 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, Burlington Northern Santa Fe Corp (USD) 6.53% 7/15/2037 made analysts' 'Conviction Buy' list. (See the chart below for Burlington Northern Santa Fe Corpbonds below) Corey Mahoney

 

Key Gainers and Losers	Volume Leaders
+   HSBC USA Inc. 2.75% 8/7/2020 + 0.0%   Toyota Motor Credit Corp. 1.9% 4/8/2021 + 0.2% -   Altria Group Inc. 5.95% 2/14/2049 -0.6%	CVS Health Corp.   5.05% 3/25/2048 General Electric Co.   FLT% PERP (1)

Industry Returns Tracker

Industry Past Day Past Week Past Month Past Quarter YTD Past Year Agriculture, Forestry, Fishing 0.35% 0.20% 1.57% 3.37% 10.10% 9.90% Mining 0.30% 0.59% 3.03% 6.12% 13.03% 11.26% Construction 0.29% 0.40% 2.78% 6.13% 10.46% 9.60% Manufacturing 0.29% 0.47% 3.46% 6.89% 11.65% 10.31% Transportion, Communication, Electric/Gas 0.41% 0.70% 4.52% 8.59% 15.24% 14.48% Wholesale 0.20% 0.35% 2.34% 5.36% 11.85% 10.35% Retail 0.34% 0.66% 4.14% 7.77% 13.00% 11.96% Finance, Insurance, Real-Estate 0.19% 0.29% 2.48% 4.75% 9.55% 9.56% Services 0.28% 0.49% 3.55% 6.66% 11.47% 11.03% Public Administration 0.01% 0.07% 1.58% 2.72% 4.91% 6.09% Energy 0.30% 0.66% 3.08% 6.15% 13.29% 12.70%   Total returns (non-annualized) by rating, market weighted.

New Issues	New Issues [Continued]
(None Current 08/28/2019)

NEW ISSUANCE WATCH: on 08/26/19 participants welcome a $750M new corporate-bond offering by
Texas Instruments Inc. The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 8/16/19, with a net outflow of $4.07 billion.

 

Top Widening Credit Default Swaps (CDS)	Top Narrowing Credit Default Swaps (CDS)
Weatherford International LTD (5Y Sen USD XR14) Hertz Corp. (5Y Sen USD CR14)	Cable & Wireless Communication (5Y Sen USD CR14) SuperValu Inc. (5Y Sen USD MR14)

Loans and Credit Market Overview

SYNDICATED LOANS HIGHLIGHTS:

Deals recently freed for secondary trading, notable secondary activity:

• PaySimple Inc., Nike Inc., 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 15 bp (basis points), as of 08/28/19
• Net positive capital flows into high-yield ETFs & mutual funds

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