CONSUMER CONFIDENCE SURGES TO 135.7 NEARING AN 18-YEAR HIGH set back in October of 137.9. Despite the strong confidence among consumers the Fed is expected to cut rates fearing damage done by the trade dispute is worse than anticipated. “Consumers are once again optimistic about current and prospective business and labor market conditions.” Gold held steady as a safe-haven asset for investors fleeing volatility. The 10-year note lost 0.5 basis points.  S&P -0.28%, DOW -0.09, NASDAQ -0.24%

Key Gainers and Losers	Volume Leaders
+   Edison Int 2.4% 9/15/2022 (1) + 0.5%   CVS Health Corp. 3.7% 3/9/2023 + 0.3% -   Barclays PLC 2.75% 11/8/2019 -0.0%	EQT Corp.   3.9% 10/1/2027 Citigroup Inc.   FLT% 4/25/2022

Industry Returns Tracker

Industry Past Day Past Week Past Month Past Quarter YTD Past Year Agriculture, Forestry, Fishing 0.08% -0.08% -0.43% 2.88% 8.52% 8.62% Mining 0.02% -0.01% 0.01% 3.10% 9.50% 8.67% Construction 0.13% 0.19% 0.68% 3.80% 8.45% 8.94% Manufacturing 0.07% 0.03% 0.29% 3.88% 8.27% 7.81% Transportion, Communication, Electric/Gas 0.10% 0.10% 0.44% 4.67% 10.31% 10.40% Wholesale 0.06% 0.08% 0.41% 3.50% 8.94% 8.42% Retail 0.10% -0.06% 0.18% 3.90% 8.32% 8.58% Finance, Insurance, Real-Estate 0.08% 0.01% 0.23% 2.93% 6.80% 7.73% Services 0.06% 0.02% 0.15% 3.84% 7.89% 8.51% Public Administration 0.05% -0.08% -0.02% 1.82% 3.30% 5.13% Energy 0.04% -0.03% 0.03% 3.27% 9.72% 8.94%   Total returns (non-annualized) by rating, market weighted.

New Issues	New Issues [Continued]
1. Owens Corning (USD) 3.95% 8/15/2029 (07/29/2019): 450MM Senior Unsecured Notes, Price at Issuance 99.787, Yielding 3.98%. 2. Essex Portfolio LP (USD) 3% 1/15/2030 (07/29/2019): 400MM Senior Unsecured Notes, Price at Issuance 98.632, Yielding 3.15%.

NEW ISSUANCE WATCH: on 7/30/19 participants welcome $750 million in  new corporate-bond offerings by
Las Vegas Sands Corp. The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 7/26/19, with a net inflow of $1.3B, Seven week total $9.0B flowed into high-yield. 

 

Top Widening Credit Default Swaps (CDS)	Top Narrowing Credit Default Swaps (CDS)
Hertz Corp. (5Y Sen USD XR14) Hovnanian Enterprises Inc. (5Y Sen USD MR14)	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:

• PLZ Aeroscience Corp., AIR Comm Corp. LLC, Nascar Holdings Inc., NGPL Pipeco LLC

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 07/30/19
• Net positive capital flows into high-yield ETFs & mutual funds

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