PEMEX unvieled yesterday in a 200 page business plan that they plan to overhaul PEMEX. They plan cost cuts that would create $6.6 billion in savings. The government of Mexico plans to inject $7.8 billion into PEMEX. PEMEX also plans to invest $104.6 billion over the next 6 years. This unveiling caused Petroleos Mexicanos (USD) 6.5% 3/13/2027, Petroleos Mexicanos (USD) 3.5% 1/30/2023, Petroleos Mexicanos (USD) 4.875% 1/18/2024, Petroleos Mexicanos (USD) 6.5% 6/2/2041, Petroleos Mexicanos (USD) 6.375% 1/23/2045 to trade over $200 million bonds today.
|Key Gainers and Losers||Volume Leaders|
|CVS Health Corp. 5.05% 3/25/2048
Anheuser-Busch Inbev Worldwide Inc. 4.75% 1/23/2029
Anheuser-Busch Inbev Worldwide Inc. 5.55% 1/23/2049
|Industry Returns Tracker|
|New Issues||New Issues [Continued]|
1. Low Income Investment Fund (USD) 3.711% 7/1/2029 (07/17/2019): 75MM Unsecured Notes, Price at Issuance 100, Yielding 3.71%.
2. MPT Operating Partnership LP (USD) 4.625% 8/1/2029 (07/18/2019): 900MM Senior Unsecured Notes, Price at Issuance 99.5, Yielding 4.69%.
3. Toronto-Dominion Bank (USD) 2.75% 7/22/2022 (07/18/2019):125MM Senior Unsecured Notes, Price at Issuance 100, Yielding 2.75%.
|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)
|Road King Infrastructure LTD (5Y Sen USD CR14)
SuperValu Inc. (5Y Sen USD MR14)
Loans and Credit Market Overview
Deals recently freed for secondary trading, notable secondary activity:
- Consolidated Precision Products, Starwood Property Trust Inc., Heritage Power, LLC
- TED spread held below 19 bp (basis points), as of 07/18/19
- Net positive capital flows into high-yield ETFs & mutual funds
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