US STOCKS FELL TODAY AFTER the Federal Reserve announced it will cut interest rates for the first time since 2008. According to Jerome Powell, the 25 basis point cut is a ‘mid-cycle adjustment’ and future cuts may not be necessary. He added that it will provide insurance against global economic risks and boost inflation. The 10-year note lost 4.2 basis points. S&P -1.09%, DOW -1.23%, NASDAQ -1.19%.

Key Gainers and Losers	Volume Leaders
+   CVS Health Corp. 2.8% 7/20/2020 + 0.0%   Microsoft Corp. 3.7% 8/8/2046 + 1.5% -   General Electric Co. FLT% PERP (1) -0.1%   Vodafone Group PLC 3.75% 1/16/2024 -0.2%	CVS Health Corp.   5.05% 3/25/2048 General Electric Co.   FLT% PERP (1)

Industry Returns Tracker

Industry Past Day Past Week Past Month Past Quarter YTD Past Year Agriculture, Forestry, Fishing -0.11% -0.11% -0.55% 2.86% 8.39% 8.59% Mining -0.11% -0.08% -0.07% 2.93% 9.50% 8.59% Construction -0.04% 0.25% 0.61% 3.86% 7.96% 8.76% Manufacturing -0.07% 0.04% 0.27% 3.64% 8.08% 7.78% Transportion, Communication, Electric/Gas -0.06% 0.16% 0.40% 4.48% 10.15% 10.27% Wholesale -0.11% 0.01% 0.31% 3.42% 9.12% 8.49% Retail -0.10% 0.02% 0.13% 3.77% 8.54% 8.68% Finance, Insurance, Real-Estate -0.04% 0.05% 0.22% 2.82% 6.87% 7.81% Services -0.15% -0.04% 0.04% 3.62% 7.85% 8.55% Public Administration 0.01% 0.01% -0.03% 1.71% 3.27% 5.07% Energy -0.11% -0.06% -0.06% 3.02% 9.71% 8.80%   Total returns (non-annualized) by rating, market weighted.

New Issues	New Issues [Continued]
1. Las Vegas Sands Corp. (USD) 3.9% 8/8/2029 (07/30/2019):750MM Senior Unsecured Notes, Price at Issuance 99.712, Yielding 3.93%. 2. Honeywell Intl. Inc. (USD) 2.15% 8/8/2022 (07/30/2019): 600MM Senior Unsecured Notes, Price at Issuance 99.899, Yielding 2.18%.

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 CR14) Hovnanian Enterprises Inc. (5Y Sen USD MR14)	Cable & Wireless Communication (5Y Sen USD CR14) Atmos Energy Corp. (5Y Sen USD MR14)

Loans and Credit Market Overview

SYNDICATED LOANS HIGHLIGHTS:

Deals recently freed for secondary trading, notable secondary activity:

• Maxamcorp Holding SL, PLZ Aeroscience Corp., AIR Comm Corp. LLC, Nascar Holdings Inc.

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 19 bp (basis points), as of 07/31/19
• Net positive capital flows into high-yield ETFs & mutual funds

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