U.S. DURABLE GOODS ORDERS SURGED BY 2 PERCENT IN JUNE largely due to an increase in civilian aircraft orders. Core capital goods orders rose 1.9 percent on year-over-year basis suggesting the economy is picking up steam after two months of weak data. “The U.S. economy is stronger today because the rest of the world is in a recession. That’s not the way it’s supposed to work, but that’s the way it’s working now. Because the rest of the world is in a recession, our interest rates are scraping bottom. And because our interest rates are scraping bottom, our economy is actually doing pretty darn well,” said Todd Buchholz, former White House director of economic policy under President George H.W. Bush  “Eighty-eight percent of our economy has pretty much nothing at all to do with exports or imports.”

Key Gainers and Losers	Volume Leaders
+   Broadcom Corp. 3.875% 1/15/2027 + 0.2%   Ford Motor Co. 4.346% 12/8/2026 + 0.2% -   AT&T Inc. FLT% 6/12/2024 -0.0%	Bank of America Corp.   4.33% 3/15/2050 AT&T Inc.   FLT% 6/12/2024

Industry Returns Tracker

Industry Past Day Past Week Past Month Past Quarter YTD Past Year Agriculture, Forestry, Fishing 0.00% -0.12% -0.37% 2.87% 8.55% 8.67% Mining -0.11% -0.10% 0.15% 2.99% 9.13% 8.54% Construction -0.02% -0.12% 0.30% 3.60% 7.45% 8.06% Manufacturing -0.10% 0.10% 0.37% 3.75% 7.88% 7.64% Transportion, Communication, Electric/Gas -0.11% 0.10% 0.49% 4.52% 10.06% 10.38% Wholesale -0.14% 0.07% 0.47% 3.51% 8.80% 8.42% Retail -0.16% -0.06% 0.21% 3.99% 8.51% 8.69% Finance, Insurance, Real-Estate -0.08% -0.02% 0.16% 2.90% 6.61% 7.67% Services -0.13% -0.02% 0.19% 3.70% 7.66% 8.26% Public Administration -0.13% -0.23% -0.16% 1.69% 3.20% 5.06% Energy -0.12% -0.09% 0.18% 3.16% 9.48% 8.97%   Total returns (non-annualized) by rating, market weighted.

New Issues	New Issues [Continued]
1. PepsiCo Inc. (USD) 2.625% 7/29/2029 (07/25/2019): 1000MM Senior Unsecured Notes, Price at Issuance 99.703, Yielding 2.66%. 2. American Express Co. (USD) 2.5% 7/30/2024 (07/25/2019):1500MM Senior Unsecured Notes, Price at Issuance 99.678, Yielding 2.57%.

NEW ISSUANCE WATCH: on 7/25/19 participants welcome $1 billion in  new corporate-bond offerings by PepsiCo Inc. The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 7/19/19, with a net inflow of $570MM, six week total $7.4B flowed into high-yield. 

 

Top Widening Credit Default Swaps (CDS)	Top Narrowing Credit Default Swaps (CDS)
Rite Aid Corp. (5Y Sen USD XR14) Hertz Corp. (5Y Sen USD CR14)	SuperValu Inc. (5Y Sen USD MR14) San Miguel Corp. (5Y Sen USD CR14)

Loans and Credit Market Overview

SYNDICATED LOANS HIGHLIGHTS:

Deals recently freed for secondary trading, notable secondary activity:

• Nascar Holdings Inc., NGPL Pipeco LLC, Whatabrands LLC, Electricite de France

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 held below 16 bp (basis points), as of 07/26/19
• Net positive capital flows into high-yield ETFs & mutual funds

Copyright 2019 Advantage Data Inc. All Rights Reserved. http://www.advantagedata.com

Information in this document should not be regarded as an offer to sell or solicitation of an offer to buy bonds or any financial instruments referred to herein. All information provided in this document is believed to be accurate. However, Advantage Data and its sources make no warranties, either express or implied, as to any matter whatsoever, including but not limited to warranties of merchantability or fitness for a particular purpose. Opinions in this document are subject to change without notice. Electronic redistribution, photocopying and any other electronic or mechanical reproduction is strictly prohibited without prior written permission from Advantage Data Inc.