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
IN THE CORPORATE BOND SPACE, Las Vegas Sands Corp. recently announced its pricing of $3.5 billion in senior notes. The notes are broken up into 3 separate tranches yielding 3.2% due 2024, 3.5% due 2026, and 3.9% due 2029. The casino and resort company will use the proceeds to repay outstanding term loans and for general corporate purposes. ADI proprietary index data showed a net yield increment for high-grade versus high-yield bonds. High-grade edged out high-yield. Among high-grade bonds showing topmost price gains at appreciable volumes traded, Comcast Corp (USD) 6.5% 11/15/2035 made analysts' 'Conviction Buy' lists. (See the chart for Comcast Corp below.) Andrew Robartes
|Key Gainers and Losers||Volume Leaders|
|CVS Health Corp. 5.05% 3/25/2048
General Electric Co. FLT% PERP (1)
|Industry Returns Tracker|
|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%.
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
Deals recently freed for secondary trading, notable secondary activity:
- Maxamcorp Holding SL, PLZ Aeroscience Corp., AIR Comm Corp. LLC, Nascar Holdings Inc.
- 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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