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.”
T-MOBILE AND SPRINT RECEIVE APPROVAL from the Department of Justice to continue with the merger of the two companies. Under the agreement, Sprint will have to divest its Boost Mobile and Virgin Mobile brands to Dish Network Corp. Subsequent to the agreement T-Mobile will not raise rates for at least three years and will increase 5G coverage to 97 percent of the U.S. population. ADI proprietary index data showed a net yield increment for high-grade versus high-yield bonds. High-yield edged out high-grade. Among high-yield bonds showing topmost price gains at appreciable volumes traded, Sprint Nextel Corp. (USD) 11.5% 11/15/2021 made analysts' 'Conviction Buy' lists. (See the chart for Sprint Nextel Corp. below.) Corey Mahoney
| Key Gainers and Losers | Volume Leaders | |||||||||
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Bank of America Corp. 4.33% 3/15/2050 AT&T Inc. FLT% 6/12/2024 |
| Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| New Issues | New Issues [Continued] |
|---|---|
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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%. |
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Additional Commentary
| 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
- TED spread held below 16 bp (basis points), as of 07/26/19
- Net positive capital flows into high-yield ETFs & mutual funds
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