STOCKS INITIALLY FELL ON FRIDAY following weak industrial growth from China surprising investors reporting a 17-year low. “The China data certainly is far-reaching, impacting not only China but global markets as well.” Investors will keep a keen eye on the Feds meeting next week speculating on a rate cut. The 10-year note lost 0.1 basis points. Equities recovered in the afternoon from China's disappointing data, S&P +0.03%, DOW +0.14, NASDAQ -0.28%.
Read More
Topics:
High Yield,
Investment Grade,
Loans,
Analytics,
bonds,
junk bonds,
bond market,
market analytics,
New Issues,
Finance,
Fixed Income,
News,
Syndicated Bonds,
syndicated,
research,
market update
STOCKS INITIALLY FELL ON FRIDAY following weak industrial growth from China
surprising investors reporting a 17-year low.
“The China data certainly is far-reaching, impacting not only China but global markets as well.” Investors will keep a keen eye on the Feds meeting next week speculating on a rate cut.
The 10-year note lost 0.1 basis points.
Equities recovered in the afternoon from China's disappointing data, S&P +0.03%,
DOW +0.14,
NASDAQ
-0.28%.
Read More
Topics:
Investment Grade,
Loans,
Analytics,
bonds,
junk bonds,
bond market,
market analytics,
New Issues,
News,
Syndicated Bonds,
syndicated,
research,
market update
INVESTMENT GRADE DEBT ROSE AGAINST JUNK BONDS in net prices linked to actual trades as a risk-off sentiment continues. Crude oil spiked following two tankers being attacked near the Strait of Hormuz threatening the global supply, delivery of July crude shot up more than 4 percent before settling up 2.09 percent. Director of research at GraniteShares stated, “The nature of these events is that the outcomes are quite binary: either a major supply disruption event transpires or it does not.” The 10-year note lost 2.0 basis points. S&P +0.15%, DOW +0.15, NASDAQ +0.34%.
Read More
Topics:
High Yield,
Investment Grade,
Loans,
Analytics,
bonds,
junk bonds,
bond market,
market analytics,
New Issues,
Finance,
Fixed Income,
News,
Syndicated Bonds,
syndicated,
research,
market update
INVESTMENT GRADE DEBT ROSE AGAINST JUNK BONDS in net prices linked to actual trades as a risk-off sentiment continues.
Crude oil spiked
following two tankers being
attacked near the Strait of Hormuz threatening the
global supply
, delivery of
July crude shot up more than 4 percent
before settling up 2.09 percent. Director of research at GraniteShares stated,
“
The nature of these events is that the outcomes are quite binary: either a major supply disruption event transpires or it does not.”
The 10-year note lost 2.0 basis points
. S&P
+0.15%,
DOW +0.15,
NASDAQ
+0.34%
THE NUMBER OF AMERICANS FILING UNEMPLOYMENT APPLICATIONS increased last week to a five-week high rising by 3,000 claims. Despite the modest climb in jobless claims, the
labor market remains robust and unemployment maintains its
near historic 50-year lows. Trade war flare-ups and the
lack of skilled labor
have hindered the economy
causing anxiety
and a slowdown for hiring in the retail, construction and manufacturing sectors.
ADI proprietary index data showed a net
yield increment for high-yield versus high-grade bonds. High-grade edged out high-yield. Among high-grade bonds showing topmost price gains at appreciable volumes traded,
Public Service Electric And Gas Company (USD) 5.7% 12/1/2036
made analysts' 'Conviction Buy' lists. (See the chart for
ADI
indexes
above.)
Corey Mahoney (
cmahoney@advantagedata.com).
| Key Gainers and Losers |
Volume Leaders |
| + |
HCA Inc. 5.375% 2/1/2025 |
+ 0.2% |
| |
Whiting Petroleum Corp. 6.625% 1/15/2026 |
+ 0.3% |
| - |
Genworth Financial Inc. 7.625% 9/24/2021 |
-0.0% |
|
Frontier Communications Corp. 11% 9/15/2025
Chesapeake Energy Corp. 8% 1/15/2025
|
| Industry Returns Tracker |
| Industry |
Past Day |
Past Week |
Past Month |
Past Quarter |
YTD |
Past Year |
| Agriculture, Forestry, Fishing |
0.13% |
0.85% |
1.72% |
2.68% |
7.58% |
10.04% |
| Mining |
-0.45% |
-0.19% |
-2.51% |
-0.36% |
6.46% |
1.17% |
| Construction |
-0.02% |
0.69% |
1.12% |
3.89% |
8.90% |
6.63% |
| Manufacturing |
-0.08% |
0.60% |
0.11% |
1.95% |
7.54% |
5.74% |
| Transportion, Communication, Electric/Gas |
-0.13% |
0.42% |
1.21% |
3.46% |
8.75% |
8.08% |
| Wholesale |
-0.09% |
0.56% |
0.84% |
2.84% |
9.13% |
6.03% |
| Retail |
-0.05% |
0.81% |
0.61% |
4.86% |
11.17% |
8.52% |
| Finance, Insurance, Real-Estate |
-0.02% |
0.64% |
0.77% |
2.75% |
8.61% |
7.83% |
| Services |
-0.07% |
0.74% |
1.13% |
3.02% |
9.11% |
7.98% |
| Public Administration |
0.02% |
1.16% |
1.47% |
2.65% |
8.21% |
13.49% |
| Energy |
-0.43% |
-0.25% |
-2.45% |
-0.35% |
6.22% |
0.86% |
| |
| Total returns (non-annualized) by rating, market weighted. |
|
| New Issues |
Forward Calendar |
| 1. Outfront Media Capital LLC (USD) 5% 8/15/2027 Reg S (06/13/2019): 650MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5%. 2. Harsco Corp. (USD) 5.75% 7/31/2027 Reg S (06/13/2019): 500MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5.75%. |
1. Diamondback Energy Inc.: High-yield notes, Expected Q2 2019
2. Harsco Corp.: Unsecured Debt, Expected Q3 2019
|
Additional Commentary
NEW ISSUANCE WATCH: on 6/13/19 participants welcome a $500MM new corporate-bond offering by Harsco Corp.
The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 6/7/19, with a net outflow of $3.2B, year-to-date $6.6B 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)
Atmos Energy Corp. (5Y Sen USD MR14) |
Loans and Credit Market Overview
SYNDICATED LOANS HIGHLIGHTS:
Deals recently freed for secondary trading,
notable secondary activity:
- Perforce Software Inc., Avantor Performance Materials Inc., United PF Holdings LLC
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 22 bp (basis points), as of 06/13/19
- Net positive capital flows into high-yield ETFs & mutual funds
Copyright 2019 Advantage Data Inc. All Rights Reserved. http://www.advantagedata.com
Information in this document should not be regarded as an offer to sell or solicitation of an offer to buy bonds or any financial instruments referred to herein. All information provided in this document is believed to be accurate. However, Advantage Data and its sources make no warranties, either express or implied, as to any matter whatsoever, including but not limited to warranties of merchantability or fitness for a particular purpose. Opinions in this document are subject to change without notice. Electronic redistribution, photocopying and any other electronic or mechanical reproduction is strictly prohibited without prior written permission from Advantage Data Inc.
Read More
Topics:
Investment Grade,
Loans,
Analytics,
bonds,
junk bonds,
bond market,
market analytics,
New Issues,
News,
Syndicated Bonds,
syndicated,
research,
market update
SUBDUED INFLATION REINFORCES the Fed’s case to “act as appropriate to sustain the expansion" by slashing interest rates. Risk-off sentiment prevailed as investment grade debt rose against high yield bonds in net prices linked to actual trades. The Treasury yield curve steepened on Wednesday ahead of the Fed’s meeting next week signaling expectations of a rate cut. The 10-year note dipped 2.2 basis points. S&P -0.20%, DOW -0.17, NASDAQ -0.38%.
Read More
Topics:
High Yield,
Investment Grade,
Loans,
Analytics,
bonds,
junk bonds,
bond market,
market analytics,
New Issues,
Finance,
Fixed Income,
News,
Syndicated Bonds,
syndicated,
research,
market update
SUBDUED INFLATION REINFORCES
the Fed’s case to “
act as appropriate to sustain the expansion” by slashing interest rates.
Risk-off sentiment prevailed
as investment grade debt rose against high yield bonds in net prices linked to actual trades. The
T
reasury yield curve steepened
on Wednesday ahead of the
Fed’s meeting next week
signaling expectations of a rate cut.
The 10-year note dipped 2.2 basis points
. S&P
-0.20%,
DOW -0.17,
NASDAQ
-0.38%
CONSUMER PRICE INDEX TICKED HIGHER IN MAY
rising a seasonally adjusted 0.1 percent down from a 0.2 percent gain in April.
Gasoline
and used auto prices
dragged the index lower
falling 0.5 percent and 1.4 percent respectively.
Year-over-year CPI declined 2 percent,
“It definitely gives the Fed scope to loosen but I don’t think low core inflation on its own is going to cause the Fed to cut interest rates.” Delivery of
July crude slipped 4.11 percent
marking the third consecutive day of declines upon a report
supplies climbed by 2.2 million barrels.
ADI proprietary index data showed a net
yield increment for high-yield versus high-grade bonds. High-grade edged out high-yield. Among high-grade bonds showing topmost price gains at appreciable volumes traded,
Microsoft Corp. (USD) 4.2% 11/3/2035
made analysts' 'Conviction Buy' lists. (See the chart for
ADI
indexes
above.)
Corey Mahoney (
cmahoney@advantagedata.com).
| Key Gainers and Losers |
Volume Leaders |
| + |
Petrobras Global Finance BV 8.75% 5/23/2026 |
+ 0.4% |
| |
Citizens Communications Co. 9% 8/15/2031 (1) |
+ 0.4% |
| - |
Teva Pharmaceuticals Fin BV 6.75% 3/1/2028 |
-1.7% |
|
Goodyear Tire & Rubber Co. 5% 5/31/2026
Western Digital Corp. 4.75% 2/15/2026
|
| Industry Returns Tracker |
| Industry |
Past Day |
Past Week |
Past Month |
Past Quarter |
YTD |
Past Year |
| Agriculture, Forestry, Fishing |
0.13% |
1.03% |
1.57% |
2.85% |
7.50% |
9.32% |
| Mining |
0.21% |
0.28% |
-1.79% |
0.56% |
7.19% |
1.89% |
| Construction |
0.13% |
0.84% |
1.11% |
4.31% |
9.21% |
6.53% |
| Manufacturing |
0.11% |
0.89% |
0.31% |
2.56% |
7.95% |
6.28% |
| Transportion, Communication, Electric/Gas |
0.03% |
0.71% |
1.16% |
3.68% |
8.86% |
7.89% |
| Wholesale |
0.17% |
1.04% |
0.97% |
3.09% |
8.97% |
5.75% |
| Retail |
0.12% |
1.29% |
0.78% |
4.90% |
12.10% |
7.64% |
| Finance, Insurance, Real-Estate |
0.07% |
0.76% |
0.73% |
3.02% |
8.69% |
7.96% |
| Services |
0.07% |
0.96% |
1.12% |
3.14% |
9.06% |
8.09% |
| Public Administration |
0.22% |
1.27% |
1.47% |
2.97% |
8.19% |
13.49% |
| Energy |
0.13% |
0.13% |
-1.81% |
0.51% |
6.86% |
1.50% |
| |
| Total returns (non-annualized) by rating, market weighted. |
|
| New Issues |
Forward Calendar |
| 1. Graphic Packaging International Inc. (USD) 4.75% 7/15/2027 144A (06/11/2019): 300MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.75%. 2. Hilton Domestic Operating Co. (USD) 4.875% 1/15/2030 144A (06/11/2019): 1000MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.88%. |
1. Nexstar Media Group Inc.: Possible new bonds, Expected Q3 2019
2. Harsco Corp.: Unsecured Debt, Expected Q3 2019
|
Additional Commentary
NEW ISSUANCE WATCH: on 6/11/19 participants welcome a $1000MM new corporate-bond offering by Hilton Domestic Operating Co.
The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 6/7/19, with a net outflow of $3.2B, year-to-date $6.6B 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) |
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:
- Avantor Performance Materials Inc., United PF Holdings LLC, Packers Holdings
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 20 bp (basis points), as of 06/12/19
- Net positive capital flows into high-yield ETFs & mutual funds
Copyright 2019 Advantage Data Inc. All Rights Reserved. http://www.advantagedata.com
Information in this document should not be regarded as an offer to sell or solicitation of an offer to buy bonds or any financial instruments referred to herein. All information provided in this document is believed to be accurate. However, Advantage Data and its sources make no warranties, either express or implied, as to any matter whatsoever, including but not limited to warranties of merchantability or fitness for a particular purpose. Opinions in this document are subject to change without notice. Electronic redistribution, photocopying and any other electronic or mechanical reproduction is strictly prohibited without prior written permission from Advantage Data Inc.
Read More
Topics:
Investment Grade,
Loans,
Analytics,
bonds,
junk bonds,
bond market,
market analytics,
New Issues,
News,
Syndicated Bonds,
syndicated,
research,
market update
JUNK BONDS ROSE AGAINST INVESTMENT GRADE debt in net prices linked to actual trades as a risk-on sentiment continues. Margaret Patel, a senior portfolio manager at Wells Fargo, sees further gains in the high yield market, “The risk-taker will be rewarded” thanks to the Feds patient stance on monetary policy. The 10-year note dipped 0.4 basis points. S&P -0.03%, DOW -0.05, NASDAQ -0.01%.
Read More
Topics:
High Yield,
Investment Grade,
Loans,
Analytics,
bonds,
junk bonds,
bond market,
market analytics,
New Issues,
Finance,
Fixed Income,
News,
Syndicated Bonds,
syndicated,
research,
market update
JUNK BONDS ROSE AGAINST INVESTMENT GRADE debt in net prices linked to actual trades as a risk-on sentiment continues. Margaret Patel, a senior portfolio manager at Wells Fargo, sees further gains in the high yield market,
“The risk-taker will be rewarded” thanks to the Feds
patient stance on monetarypolicy.
The 10-year note dipped 0.4 basis points
. S&P -0.03%,
DOW -0.05,
NASDAQ -0.01%.
Read More
Topics:
Investment Grade,
Loans,
Analytics,
bonds,
junk bonds,
bond market,
market analytics,
New Issues,
News,
Syndicated Bonds,
syndicated,
research,
market update
THE GAP BETWEEN JOB OPENINGS AND THE UNEMPLOYED WIDENED by the largest margin ever in April. Job openings in education, retail, and construction far exceeded the number of unemployed Americans, at the end of April there were 7.449 million unfilled jobs. Gold retreated after nine consecutive sessions of gains, settling 1.3 percent lower as U.S. and Mexico trade tensions regress. The 10-year note rose 6.0 basis points. S&P +0.56%, DOW +0.43, NASDAQ +1.18%.
Read More
Topics:
High Yield,
Investment Grade,
Loans,
Analytics,
bonds,
junk bonds,
bond market,
market analytics,
New Issues,
Finance,
Fixed Income,
News,
Syndicated Bonds,
syndicated,
research,
market update
THE GAP BETWEEN JOB OPENINGS AND THE UNEMPLOYED WIDENED by the largest margin ever in April. Job openings in education, retail, and construction far
exceeded the number of unemployed
Americans, at the end of April there were
7.449 million unfilled jobs
.
Gold retreated
after nine consecutive sessions of gains, settling 1.3 percent lower as
U.S. and Mexico trade tensions regress
.
The 10-year note rose 6.0 basis points
. S&P
+0.56%,
DOW +0.43,
NASDAQ
+1.18%.
Read More
Topics:
Investment Grade,
Loans,
Analytics,
bonds,
junk bonds,
bond market,
market analytics,
New Issues,
News,
Syndicated Bonds,
syndicated,
research,
market update
.png)
