INVESTMENT GRADE DEBT ROSE AGAINST ITS HIGH YIELDING COUNTERPARTS in net prices linked to actual trades. The service sector carried the economy in May with a solid performance contrary to recent manufacturing and consumer spending reports. The Fed is overall pleased with the economy as it expanded at “a modest pace overall” showing resilience despite the escalation of trade tensions and a tight labor market. The 10-year note further dipped 2.2 basis points. S&P +-0.54%, DOW +0.56, NASDAQ +0.35%.
|Key Gainers and Losers||Volume Leaders|
|Suzano Austria GmbH 7% 3/16/2047 Reg S
Vistra Operations Co. LLC 4.3% 7/15/2029 144A
|Industry Returns Tracker|
|New Issues||New Issues [Continued]|
1. John Deere Capital Corp. (USD) 2.6% 3/7/2024 (06/04/2019):600MM Senior Unsecured Notes, Price at Issuance 99.829, Yielding 2.64%.
2. John Deere Capital Corp. (USD) FLT% 6/7/2021 (06/04/2019):400MM Senior Unsecured Notes, Price at Issuance 100.
|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)
|Cable & Wireless Communication (5Y Sen USD CR14)
SuperValu Inc. (5Y Sen USD MR14)
Loans and Credit Market OverviewSYNDICATED LOANS HIGHLIGHTS:
Deals recently freed for secondary trading, notable secondary activity:
- Packers Holdings, Charles Schwab Corp., Tundra Energy Marketing , Louis Dreyfus Corp.
- TED spread held below 14 bp (basis points), as of 06/05/19
- Net positive capital flows into high-yield ETFs & mutual funds
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