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%
EQUITY MARKETS WAVER as traders wait for clarification from the Fed on a decision if interest rates will be cut. Crude oil rallied 2.27 percent on Tuesday as bulls remain optimistic the Federal Reserve will lower rates causing a boost in demand resulting in higher prices. “Crude oil moved higher today partly due to anticipation of another meaningful inventory draw this week along with tensions that remain escalated in the Strait of Hormuz.” 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, T-Mobile USA Inc. (USD) 4.75% 2/1/2028 made analysts' 'Conviction Buy' lists. (See the chart for ADI indexes above.) Corey Mahoney
| Key Gainers and Losers | Volume Leaders | |||||||||
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EQT Corp. 3.9% 10/1/2027 Citigroup Inc. FLT% 4/25/2022 |
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| New Issues | New Issues [Continued] |
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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%. |
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Additional Commentary
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
- 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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