INVESTMENT-GRADE DEBT EDGED OUT JUNK BONDS in net prices linked to actual trades as investors purchase safe-haven assets. Treasury yields dip on soft global economic data stirring up anxiety among investors. The spread between the two and10-year widened to 21.5 basis points. The 10-year note sank 5.0 basis points. S&P-0.03%,DOW-0.10%,NASDAQ-0.02%.
U.S.
MORTGAGE APPLICATIONS DECLINE to post their largest drop in four months as mortgage rates increased to one-month highs.
“The strong economy and job market (are) keeping buyer interest high, but rising mortgage rates could add pressure to the budgets of some would-be buyers,”
MBA’s chief economist Mike Fratantoni said in a statement. June
delivery of crude declined 0.77 percent
following a report U.S. crude
supplies rose by 6.9 million barrels
last week; In addition,
gasoline inventories rose by 2.2 million barrels. Domestic
crude inventories hit an 18-month high settling
lower at $74.37 per barrel. “
Overall the report was considered bearish,”
said Kyle Cooper, a consultant at ION Energy.
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,
Kraft Heinz Co (USD) 5.2% 7/15/2045 made analysts' 'Conviction Buy' lists. (See the chart for
Kraft Heinz Co bonds below)
Corey Mahoney
cmahoney@advantagedata.com).
| Key Gainers and Losers |
Volume Leaders |
| + |
Apple Inc. 2.4% 5/3/2023 |
+ 0.0% |
| |
Deutsche Bank AG 3.375% 5/12/2021 (1) |
+ 0.6% |
| - |
Occidental Petroleum Corp. 4.2% 3/15/2048 |
-0.1% |
|
Apple Inc. 2.4% 5/3/2023
GE Capital Intl. Funding Co. 3.373% 11/15/2025
|
| Industry Returns Tracker |
| Industry |
Past Day |
Past Week |
Past Month |
Past Quarter |
YTD |
Past Year |
| Agriculture, Forestry, Fishing |
-0.28% |
-0.20% |
0.15% |
3.71% |
4.23% |
4.63% |
| Mining |
-0.02% |
0.00% |
0.70% |
4.18% |
5.93% |
5.66% |
| Construction |
0.04% |
0.21% |
0.49% |
3.56% |
4.21% |
5.01% |
| Manufacturing |
0.05% |
0.02% |
0.33% |
3.32% |
4.07% |
4.74% |
| Transportion, Communication, Electric/Gas |
0.04% |
0.15% |
0.66% |
4.52% |
5.45% |
6.31% |
| Wholesale |
0.05% |
0.07% |
0.42% |
3.72% |
4.90% |
4.90% |
| Retail |
0.05% |
-0.01% |
0.21% |
3.48% |
4.18% |
5.21% |
| Finance, Insurance, Real-Estate |
0.09% |
0.13% |
0.35% |
3.07% |
3.77% |
5.40% |
| Services |
0.08% |
-0.08% |
0.13% |
2.94% |
3.82% |
5.59% |
| Public Administration |
0.04% |
0.12% |
0.04% |
1.14% |
1.08% |
3.76% |
| Energy |
-0.01% |
-0.03% |
0.61% |
4.32% |
5.96% |
6.15% |
| |
| Total returns (non-annualized) by rating, market weighted. |
|
| New Issues |
New Issues [Continued] |
| 1. Kimberly-Clark Corp. (USD) 3.2% 4/25/2029 (04/23/2019): 700MM Senior Unsecured Notes, Price at Issuance 99.83, Yielding 3.22%. 2. Rogers Communications Inc. (CAD) 3.25% 5/1/2029 (04/23/2019):1000MM Senior Unsecured Notes, Price at Issuance 99.746, Yielding 3.28%. 3. JBS USA LLC (USD) 5.875% 7/15/2024 (04/24/2019): 150MM Senior Unsecured Notes, Price at Issuance 101.75, Yielding 5.48%. |
|
Additional Commentary
NEW ISSUANCE WATCH: on 4/23/19 participants welcome a $700MM new corporate-bond offering by
Kimberly-Clark Corp.
The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 4/18/19, with a net inflow of $1.1B, year-to-date $14.4B flowed into high-yield.
| Top Widening Credit Default Swaps (CDS) |
Top Narrowing Credit Default Swaps (CDS) |
Rite Aid Corp. (5Y Sen USD XR14)
Hertz Corp. (5Y Sen USD CR14) |
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:
- Prysmian, Project Maple II BV, Trade Me Group LTD, Jane Street, Six Flags 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 15 bp (basis points), as of 04/24/19
- 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:
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 EDGED OUT JUNK BONDS in net prices linked to actual trades as investors
purchase safe-haven assets. Treasury yields dip on
soft global economic data
stirring up anxiety among investors. The spread between the two and
10-year widened to 21.5 basis points.
The 10-year note sank 5.0 basis points
. S&P -0.03%,
DOW
-0.10%,
NASDAQ
-0.02%.
Read More
Topics:
Investment Grade,
Loans,
Analytics,
bonds,
junk bonds,
bond market,
market analytics,
New Issues,
News,
Syndicated Bonds,
syndicated,
research,
market update
U.S. TREASURY YIELDS ACROSS the board settled lower following the sale of $40 billion of 2-year notes; the 2-year note sank 4.6 basis points and 10-year note dipped 2.2 basis points. S&P and NASDAQ surged past record highs on Tuesday on upbeat earnings relieving anxiety on a gloomy earnings season. S&P +0.88%, DOW +0.55%, NASDAQ +1.32%
NETFLIX WILL BE OFFERING $2 BILLION
in senior unsecured debt rated
Ba3 by Moody’s, three tiers below investment grade given the online media provider is
7.5x levered. Subsequently Netflix (
NFLX) fell in premarket trading but quickly recovering
rallying 1.9 percent during mid-day trading. Moody’s remains optimistic on Netflix’s long-term strategy,
“Despite the continuing issuances of debt to fund the company’s negative cash flows, we expect leverage to drop gradually over time with subscriber growth”. New home sales flirt with a
one and a half year high, rising for the third consecutive month aided by lower mortgage rates and a cooling market. The median
price of a new construction declined
9.7 percent
in March year over year.
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,
Gulf Power Co. (USD) 4.55% 10/1/2044 made analysts' 'Conviction Buy' lists. (See the chart for
Netflix bonds below)
Corey Mahoney
cmahoney@advantagedata.com).
| Key Gainers and Losers |
Volume Leaders |
| + |
CVS Health Corp. 5.05% 3/25/2048 |
+ 0.4% |
| |
Comcast Corp. 4.15% 10/15/2028 |
+ 0.4% |
| - |
Lockheed Martin Corp. 3.35% 9/15/2021 |
-0.6% |
|
Molson Coors Brewing Co. 2.25% 3/15/2020
Celgene Corp. 3.875% 8/15/2025
|
| Industry Returns Tracker |
| Industry |
Past Day |
Past Week |
Past Month |
Past Quarter |
YTD |
Past Year |
| Agriculture, Forestry, Fishing |
-0.10% |
-0.25% |
0.41% |
4.05% |
4.49% |
4.63% |
| Mining |
-0.06% |
-0.18% |
0.73% |
4.38% |
5.94% |
5.56% |
| Construction |
-0.02% |
0.06% |
0.51% |
3.54% |
3.99% |
4.75% |
| Manufacturing |
-0.10% |
-0.18% |
0.33% |
3.52% |
4.14% |
4.56% |
| Transportion, Communication, Electric/Gas |
-0.09% |
-0.06% |
0.53% |
4.46% |
5.14% |
6.01% |
| Wholesale |
-0.04% |
-0.06% |
0.40% |
3.64% |
4.53% |
4.55% |
| Retail |
-0.09% |
-0.20% |
0.21% |
3.49% |
4.08% |
4.92% |
| Finance, Insurance, Real-Estate |
-0.05% |
-0.09% |
0.27% |
3.10% |
3.68% |
5.17% |
| Services |
-0.09% |
-0.23% |
0.12% |
3.03% |
3.74% |
5.36% |
| Public Administration |
-0.02% |
0.02% |
0.01% |
1.14% |
1.03% |
3.64% |
| Energy |
-0.08% |
-0.28% |
0.62% |
4.60% |
6.04% |
6.02% |
| |
| Total returns (non-annualized) by rating, market weighted. |
|
| New Issues |
New Issues [Continued] |
| 1. Kimberly-Clark Corp. (USD) 3.2% 4/25/2029 (04/23/2019): 700MM Senior Unsecured Notes, Price at Issuance 99.83, Yielding 3.22%. 2. Rogers Communications Inc. (USD) 4.35% 5/1/2049 (04/23/2019):1250MM Senior Unsecured Notes, Price at Issuance 99.667, Yielding 4.37%. |
|
Additional Commentary
NEW ISSUANCE WATCH: on 4/23/19 participants welcome a $700MM new corporate-bond offering by
Kimberly-Clark Corp.
The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 4/18/19, with a net inflow of $1.1B, year-to-date $14.4B flowed into high-yield.
| Top Widening Credit Default Swaps (CDS) |
Top Narrowing Credit Default Swaps (CDS) |
Weatherford International LTD (5Y Sen USD XR14)
Hertz Corp. (5Y Sen USD CR14) |
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:
- Prysmian, Project Maple II BV, Trade Me Group LTD, Jane Street, Six Flags Inc.
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 17 bp (basis points), as of 04/23/19
- 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:
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
U.S.
TREASURY YIELDS ACROSS
the board settled lower following the sale of $40 billion of 2-year notes; the
2-year note sank 4.6
basis points and
10-year note dipped 2.2 basis points.
S&P and NASDAQ surged past record highs
on Tuesday on upbeat earnings
relieving anxiety
on a gloomy earnings season.
S&P
+0.88%,
DOW
+0.55%,
NASDAQ
+1.32%
NETFLIX WILL BE OFFERING $2 BILLION
in senior unsecured debt rated
Ba3 by Moody’s, three tiers below investment grade given the online media provider is
7.5x levered. Subsequently Netflix (
NFLX) fell in premarket trading but quickly recovering
rallying 1.9 percent during mid-day trading. Moody’s remains optimistic on Netflix’s long-term strategy,
“Despite the continuing issuances of debt to fund the company’s negative cash flows, we expect leverage to drop gradually over time with subscriber growth”. New home sales flirt with a
one and a half year high, rising for the third consecutive month aided by lower mortgage rates and a cooling market. The median
price of a new construction declined
9.7 percent
in March year over year.
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,
Gulf Power Co. (USD) 4.55% 10/1/2044 made analysts' 'Conviction Buy' lists. (See the chart for
Netflix bonds below.)
Corey Mahoney
cmahoney@advantagedata.com).
| Key Gainers and Losers |
Volume Leaders |
| + |
Pacific Gas & Electric Co. 6.05% 3/1/2034 |
+ 0.9% |
| |
Park Aerospace Hldgs LTD 5.25% 8/15/2022 144A |
+ 0.2% |
| - |
Western Digital Corp. 4.75% 2/15/2026 |
-0.0% |
|
HCA Inc. 5.25% 6/15/2026
Sprint Nextel Corp. 7.875% 9/15/2023
|
| Industry Returns Tracker |
| Industry |
Past Day |
Past Week |
Past Month |
Past Quarter |
YTD |
Past Year |
| Agriculture, Forestry, Fishing |
-0.18% |
-0.14% |
0.53% |
4.47% |
7.40% |
6.10% |
| Mining |
0.03% |
-0.07% |
2.07% |
4.02% |
8.96% |
3.79% |
| Construction |
0.05% |
0.04% |
1.95% |
5.24% |
7.88% |
4.82% |
| Manufacturing |
-0.02% |
-0.07% |
1.18% |
4.44% |
7.38% |
5.99% |
| Transportion, Communication, Electric/Gas |
-0.08% |
-0.15% |
1.54% |
5.15% |
7.46% |
6.27% |
| Wholesale |
0.02% |
0.02% |
1.16% |
4.14% |
7.34% |
4.40% |
| Retail |
-0.07% |
-0.07% |
2.24% |
5.03% |
9.17% |
6.48% |
| Finance, Insurance, Real-Estate |
-0.03% |
-0.08% |
1.02% |
4.13% |
7.22% |
5.91% |
| Services |
-0.05% |
-0.36% |
1.11% |
4.11% |
7.70% |
6.76% |
| Public Administration |
-0.19% |
0.37% |
0.12% |
2.98% |
5.93% |
9.61% |
| Energy |
-0.01% |
-0.14% |
1.95% |
4.20% |
8.61% |
3.26% |
| |
| Total returns (non-annualized) by rating, market weighted. |
|
| New Issues |
Forward Calendar |
|
(None Current 04/23/2019)
|
1. E.W. Scripps: $1.85B term loans and unsecured debt, Expected Q1 2019
2. Twinset Spa: ¬170M 5 year senior secured floating-rate notes, Expected Q1 2019
|
Additional Commentary
NEW ISSUANCE WATCH: on 4/17/19 participants welcome a $300MM new corporate-bond offering by
Vizient Inc.
The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 4/18/19, with a net inflow of $1.1B, year-to-date $14.4B flowed into high-yield.
| Top Widening Credit Default Swaps (CDS) |
Top Narrowing Credit Default Swaps (CDS) |
Rite Aid Corp. (5Y Sen USD XR14)
Hertz Corp. (5Y Sen USD MR14) |
Cable & Wireless Communication (5Y Sen USD CR14)
San Miguel Corp. (5Y Sen USD CR14) |
Loans and Credit Market Overview
SYNDICATED LOANS HIGHLIGHTS:
Deals recently freed for secondary trading,
notable secondary activity:
- Prysmian, Project Maple II BV, Trade Me Group LTD, Jane Street, Six Flags 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 17 bp (basis points), as of 04/23/19
- 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
HIGH-YIELD DEBT ROSE AGAINST INVESTMENT GRADE BONDS in net prices linked to actual trades. Treasury yields ticked higher resulting in a steeper curve as crude oil prices push higher, the two often move hand in hand. In addition, the spread between the two and 10-year note widened 1.3 basis points. 10-year Treasury note rose 0.2 basis points. S&P -0.01%, DOW -0.22%, NASDAQ +0.07%
EXISTING U.S. HOME SALES PLUMMET 4.9 PERCENT IN MARCH to start the spring selling season off on a low note. The underlining issue remains with the
lack of affordable inventory
causing the slowdown. Doug Duncan, chief economist at Fannie Mae states “
There simply isn’t supply at the entry level where people actually want to buy”. Crude oil soared 2.59 percent as the U.S. announced the
termination of waivers
for countries to import Iranian oil. U.S. Secretary Mike Pompeo declared
“U.S. will not issue any exception to Iranian oil importers,”
currently
eight countries have waivers
expiring May 2.
ADI proprietary index data showed a net
yield increment for high-yield versus high-grade bonds.
High-yield edged out high-grade. Among high-yield bonds showing topmost price gains at appreciable volumes traded,
Lennar Corp. (USD) 4.75% 4/1/2021
made analysts' 'Conviction Buy' lists. (See the chart for
ADI indices above.)
Corey Mahoney
cmahoney@advantagedata.com).
| Key Gainers and Losers |
Volume Leaders |
| + |
Quest Diagnostics Inc. 4.75% 1/30/2020 |
+ 0.0% |
| |
Boston Properties Inc. 3.85% 2/1/2023 |
+ 0.2% |
| - |
Toyota Motor Credit Corp. 1.95% 4/17/2020 |
-0.1% |
|
CVS Health Corp. 4.3% 3/25/2028
Toronto-Dominion Bank 2.125% 4/7/2021
|
| Industry Returns Tracker |
| Industry |
Past Day |
Past Week |
Past Month |
Past Quarter |
YTD |
Past Year |
| Agriculture, Forestry, Fishing |
0.17% |
-0.30% |
1.28% |
4.20% |
4.56% |
4.57% |
| Mining |
0.14% |
0.17% |
1.82% |
4.79% |
6.06% |
4.85% |
| Construction |
0.14% |
0.06% |
1.31% |
3.74% |
4.00% |
4.50% |
| Manufacturing |
0.11% |
-0.08% |
1.31% |
3.77% |
4.14% |
4.10% |
| Transportion, Communication, Electric/Gas |
0.20% |
0.11% |
1.83% |
4.98% |
5.32% |
5.45% |
| Wholesale |
0.12% |
0.05% |
1.30% |
4.13% |
4.89% |
4.10% |
| Retail |
0.09% |
-0.07% |
1.25% |
4.07% |
4.32% |
4.41% |
| Finance, Insurance, Real-Estate |
0.09% |
-0.05% |
0.88% |
3.26% |
3.59% |
4.80% |
| Services |
0.08% |
-0.12% |
1.09% |
3.39% |
3.85% |
4.88% |
| Public Administration |
0.04% |
-0.04% |
0.32% |
1.22% |
1.04% |
3.47% |
| Energy |
0.17% |
0.10% |
1.78% |
5.05% |
6.11% |
5.33% |
| |
| Total returns (non-annualized) by rating, market weighted. |
|
| New Issues |
New Issues [Continued] |
|
(None Current 04/22/2019)
|
|
Additional Commentary
NEW ISSUANCE WATCH: on 4/17/19 participants welcome a $1500MM new corporate-bond offering by
Bank of America Corp.
The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 4/18/19, with a net inflow of $1.1B, year-to-date $14.4B 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 XR14)
San Miguel Corp. (5Y Sen USD CR14) |
Loans and Credit Market Overview
SYNDICATED LOANS HIGHLIGHTS:
Deals recently freed for secondary trading, notable secondary activity:
- Prysmian, Project Maple II BV, Trade Me Group LTD, Jane Street, Six Flags Inc.
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 17 bp (basis points), as of 04/22/19
- 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:
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
HIGH-YIELD DEBT ROSE AGAINST INVESTMENT GRADE BONDS
in net prices linked to actual trades. Treasury yields ticked higher resulting in a
steeper curve
as crude oil prices push higher, the two often
move hand in hand.
In addition, the
spread
between the two and 10-year note
widened 1.3 basis
points.
10-year Treasury note rose 0.2 basis points.
S&P
-0.01%,
DOW
-0.22%,
NASDAQ
+0.07%
EXISTING U.S. HOME SALES PLUMMET 4.9 PERCENT IN MARCH to start the spring selling season off on a low note. The underlining issue remains with the
lack of affordable inventory
causing the slowdown. Doug Duncan, chief economist at Fannie Mae states “
There simply isn’t supply at the entry level where people actually want to buy”. Crude oil soared 2.59 percent as the U.S. announced the
termination of waivers
for countries to import Iranian oil. U.S. Secretary Mike Pompeo declared
“U.S. will not issue any exception to Iranian oil importers,”
currently
eight countries have waivers
expiring May 2.
ADI proprietary index data showed a net
yield increment for high-yield versus high-grade bonds. High-yield edged out high-grade. Among high-yield bonds showing topmost price gains at appreciable volumes traded,
Lennar Corp. (USD) 4.75% 4/1/2021
made analysts' 'Conviction Buy' lists. (See the chart for
Lennar Corp. bonds below.)
Corey Mahoney
cmahoney@advantagedata.com).
| Key Gainers and Losers |
Volume Leaders |
| + |
HCA Inc. 6.5% 2/15/2020 |
+ 0.1% |
| |
Sprint Spectrum LP 7.25% 9/15/2021 |
+ 0.1% |
| - |
Hertz Corp. 6.25% 10/15/2022 |
-2.2% |
|
Momentive Performance Materials Inc. 3.88% 10/24/2021
Ensco PLC 4.5% 10/1/2024
|
| Industry Returns Tracker |
| Industry |
Past Day |
Past Week |
Past Month |
Past Quarter |
YTD |
Past Year |
| Agriculture, Forestry, Fishing |
-0.23% |
0.46% |
1.98% |
4.41% |
7.24% |
5.89% |
| Mining |
0.01% |
0.59% |
2.40% |
4.38% |
9.44% |
3.85% |
| Construction |
-0.08% |
0.30% |
2.15% |
5.02% |
7.76% |
4.59% |
| Manufacturing |
-0.05% |
0.16% |
1.50% |
4.46% |
7.42% |
5.49% |
| Transportion, Communication, Electric/Gas |
-0.02% |
0.25% |
1.76% |
5.15% |
7.45% |
5.86% |
| Wholesale |
-0.05% |
0.15% |
1.28% |
4.19% |
7.64% |
3.98% |
| Retail |
-0.04% |
0.30% |
2.12% |
5.01% |
9.16% |
5.95% |
| Finance, Insurance, Real-Estate |
-0.01% |
0.01% |
1.14% |
4.04% |
7.04% |
5.73% |
| Services |
-0.05% |
-0.04% |
1.22% |
3.81% |
7.00% |
6.20% |
| Public Administration |
0.12% |
0.23% |
0.43% |
3.31% |
6.08% |
10.11% |
| Energy |
0.04% |
0.82% |
2.43% |
4.74% |
9.20% |
3.33% |
| |
| Total returns (non-annualized) by rating, market weighted. |
|
| New Issues |
Forward Calendar |
|
(None Current 04/22/2019)
|
1. E.W. Scripps: $1.85B term loans and unsecured debt, Expected Q1 2019
2. Twinset Spa: ¬170M 5 year senior secured floating-rate notes, Expected Q1 2019
|
Additional Commentary
NEW ISSUANCE WATCH: on 4/17/19 participants welcome a $300MM new corporate-bond offering by
Vizient Inc.
The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 4/18/19, with a net inflow of $1.1B, year-to-date $14.4B flowed into high-yield.
| Top Widening Credit Default Swaps (CDS) |
Top Narrowing Credit Default Swaps (CDS) |
Rite Aid Corp. (5Y Sen USD XR14)
Hertz Corp. (5Y Sen USD CR14) |
Road King Infrastructure LTD (5Y Sen USD CR14)
SuperValu Inc. (5Y Sen USD MR14) |
Loans and Credit Market Overview
SYNDICATED LOANS HIGHLIGHTS:
Deals recently freed for secondary trading,
notable secondary activity:
- Prysmian, Project Maple II BV, Trade Me Group LTD, Jane Street, Six Flags 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 17 bp (basis points), as of 04/22/19
- 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 SLIGHTLY EDGED OUT INVESTMENT-GRADE DEBT in net prices linked to actual trades. Equities slip as healthcare stocks took a significant hit on Wednesday amid the developing political environment surrounding healthcare. UnitedHealth plummeted 7 percent in the past two days alone despite an earnings beat on Tuesday. 10-year Treasury note rose 0.2 basis points S&P -0.19%, DOW+0.06%, NASDAQ -0.05%
U.S. TRADE DEFICIT CONTRACTS TO AN EIGHT MONTH LOW in February as
imports from China narrowed 3.4 percent
. Economist suspect a trade deficit will remain high
,
“Even if trade negotiations are resolved in such a way as to reduce the bilateral trade deficit with China…[it] would likely divert trade flows to other countries”.
The labor market remains strong, “
Wages grew moderately
in most districts for both skilled and unskilled workers, with only three reporting slight growth in workers’ pay”.
Pinterest is targeting an IPO price of $19
a share and will begin trading on Thursday $2 above the high end of the range.
ADI proprietary index data showed a net
yield increment for high-yield versus high-grade bonds.
High-yield edged out high-grade. Among high-yield bonds showing topmost price gains at appreciable volumes traded,
Albertsons Inc (USD) 7.45% 8/1/2029
made analysts' 'Conviction Buy' lists. (See the chart for
ADI indices above.)
Corey Mahoney
cmahoney@advantagedata.com).
| Key Gainers and Losers |
Volume Leaders |
| + |
GE Capital Intl. Funding Co. 4.418% 11/15/2035 |
+ 0.0% |
| |
Comcast Corp. 4.7% 10/15/2048 |
+ 0.7% |
| - |
Bank of America Corp. 3.124% 1/20/2023 |
-0.1% |
|
JPMorgan Chase & Co. 3.964% 11/15/2048
CVS Health Corp. 4.1% 3/25/2025
|
| Industry Returns Tracker |
| Industry |
Past Day |
Past Week |
Past Month |
Past Quarter |
YTD |
Past Year |
| Agriculture, Forestry, Fishing |
-0.30% |
0.03% |
1.16% |
4.34% |
4.45% |
4.44% |
| Mining |
-0.15% |
0.14% |
1.72% |
4.73% |
5.83% |
4.56% |
| Construction |
-0.14% |
-0.21% |
1.05% |
3.46% |
3.59% |
4.33% |
| Manufacturing |
-0.10% |
0.01% |
1.27% |
3.78% |
4.04% |
3.95% |
| Transportion, Communication, Electric/Gas |
-0.13% |
-0.02% |
1.77% |
4.89% |
5.19% |
5.15% |
| Wholesale |
-0.04% |
0.13% |
1.24% |
4.15% |
4.85% |
4.20% |
| Retail |
-0.07% |
-0.03% |
1.24% |
4.02% |
4.19% |
4.25% |
| Finance, Insurance, Real-Estate |
-0.10% |
-0.05% |
0.81% |
3.21% |
3.49% |
4.56% |
| Services |
-0.07% |
-0.02% |
1.20% |
3.63% |
3.94% |
4.70% |
| Public Administration |
-0.06% |
-0.12% |
0.26% |
1.00% |
0.95% |
3.25% |
| Energy |
-0.19% |
0.05% |
1.65% |
4.95% |
5.89% |
5.03% |
| |
| Total returns (non-annualized) by rating, market weighted. |
|
| New Issues |
New Issues [Continued] |
| 1. PNC Financial Services Group Inc. (USD) 3.45% 4/23/2029 (04/16/2019): 1500MM Senior Unsecured Notes, Price at Issuance 99.84, Yielding 3.47%. 2. Wal-Mart Stores Inc. (USD) 3.05% 7/8/2026 (04/16/2019): 1250MM Senior Unsecured Notes, Price at Issuance 99.868, Yielding 3.07%. |
|
Additional Commentary
NEW ISSUANCE WATCH: on 4/17/19 participants welcome a $1500MM new corporate-bond offering by
Bank of America Corp.
The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 4/12/19, with a net inflow of $0.655B, year-to-date $13.3B 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)
San Miguel Corp. (5Y Sen USD CR14) |
Loans and Credit Market Overview
SYNDICATED LOANS HIGHLIGHTS:
Deals recently freed for secondary trading, notable secondary activity:
- Project Maple II BV, Trade Me Group LTD, Jane Street, Six Flags Inc., MW Industries 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 18 bp (basis points), as of 04/17/19
- 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:
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 SLIGHTLY EDGED OUT INVESTMENT-GRADE DEBT in net prices linked to actual trades. Equities slip as
healthcare stocks took a significant hit
on Wednesday amid the developing political environment surrounding healthcare.
UnitedHealth plummeted 7 percent in the past two days alone despite an earnings beat on Tuesday.
10-year Treasury note
rose 0.2 basis points
S&P -0.19%, DOW +0.06%, NASDAQ -0.05%
U.S. TRADE DEFICIT CONTRACTS TO AN EIGHT MONTH LOW in February as
imports from China narrowed 3.4 percent
. Economist suspect a trade deficit will remain high,
“Even if trade negotiations are resolved in such a way as to reduce the bilateral trade deficit with China…[it] would likely divert trade flows to other countries”.
The labor market remains strong, “
Wages grew moderately
in most districts for both skilled and unskilled workers, with only three reporting slight growth in workers’ pay”.
Pinterest is targeting an IPO price of $19
a share and will begin trading on Thursday $2 above the high end of the range.
ADI proprietary index data showed a net
yield increment for high-yield versus high-grade bonds. High-yield edged out high-grade. Among high-yield bonds showing topmost price gains at appreciable volumes traded,
Albertsons Inc. (USD) 7.45% 8/1/2029
made analysts' 'Conviction Buy' lists. (See the chart for
Albertsons Inc. bonds below.)
Corey Mahoney
cmahoney@advantagedata.com).
| Key Gainers and Losers |
Volume Leaders |
| + |
Sprint Nextel Corp. 6% 11/15/2022 |
+ 1.3% |
| |
General Motors Financial Co. Inc. 3.7% 11/24/2020 |
+ 0.5% |
| - |
HCA Inc. 5.625% 9/1/2028 |
-0.3% |
|
Sprint Nextel Corp. 7.875% 9/15/2023
HCA Inc. 5.5% 6/15/2047
|
| Industry Returns Tracker |
| Industry |
Past Day |
Past Week |
Past Month |
Past Quarter |
YTD |
Past Year |
| Agriculture, Forestry, Fishing |
-0.07% |
0.34% |
1.93% |
5.13% |
7.49% |
5.47% |
| Mining |
0.01% |
0.93% |
2.98% |
4.61% |
9.64% |
3.74% |
| Construction |
0.11% |
0.62% |
2.21% |
5.41% |
8.10% |
5.25% |
| Manufacturing |
0.07% |
0.50% |
1.62% |
4.91% |
7.68% |
5.81% |
| Transportion, Communication, Electric/Gas |
0.05% |
0.68% |
1.93% |
5.65% |
7.51% |
6.27% |
| Wholesale |
0.12% |
0.41% |
1.47% |
4.60% |
7.64% |
3.99% |
| Retail |
0.10% |
0.75% |
2.46% |
6.75% |
10.08% |
6.33% |
| Finance, Insurance, Real-Estate |
0.01% |
0.35% |
1.37% |
4.44% |
7.29% |
5.92% |
| Services |
0.01% |
0.45% |
1.56% |
4.49% |
7.64% |
6.60% |
| Public Administration |
0.12% |
-0.43% |
0.18% |
2.95% |
5.68% |
9.67% |
| Energy |
-0.03% |
1.10% |
2.91% |
4.96% |
9.40% |
3.08% |
| |
| Total returns (non-annualized) by rating, market weighted. |
|
| New Issues |
Forward Calendar |
| 1. Co-operative Bank PLC (GBP) 9.5% 4/25/2029 (04/17/2019):200MM Subordinated Notes. 2. Vizient Inc. (USD) 6.25% 5/15/2027 144A (04/17/2019): 300MM Senior Unsecured Notes, Price at Issuance 100, Yielding 6.25%. |
1. E.W. Scripps: $1.85B term loans and unsecured debt, Expected Q1 2019
2. Twinset Spa: ¬170M 5 year senior secured floating-rate notes, Expected Q1 2019
|
Additional Commentary
NEW ISSUANCE WATCH: on 4/17/19 participants welcome a $300MM new corporate-bond offering by
Vizient Inc.
The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 4/12/19, with a net inflow of $0.655B, year-to-date $13.3B 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 XR14)
San Miguel Corp. (5Y Sen USD CR14) |
Loans and Credit Market Overview
SYNDICATED LOANS HIGHLIGHTS:
Deals recently freed for secondary trading,
notable secondary activity:
- Project Maple II BV, Trade Me Group LTD, Jane Street, Six Flags Inc., MW Industries 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 18 bp (basis points), as of 04/17/19
- 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
HIGH-YIELD BONDS OUTPACED INVESTMENT-GRADE in net prices linked to actual trades. Treasury prices dipped sending yields higher, the 10-year Treasury note rose 3.8 basis points and the 30-year notegained 2.4 basis points. Gold slid to its lowest point in 2019 as a risk-on appetite picks up sending equity indexes near record highs. S&P +0.14%, DOW +0.31%, NASDAQ +0.45%.
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
HIGH-YIELD BONDS OUTPACED INVESTMENT-GRADE
in net prices linked to actual trades. Treasury prices dipped sending yields higher, the
10-year Treasury note
rose 3.8 basis points and the
30-year note
gained 2.4 basis points
.
Gold
slid to its lowest point in 2019 as a risk-on appetite picks up sending equity indexes near record highs.
S&P
+0.14%,
DOW
+0.31%,
NASDAQ
+0.45%.
Read More
Topics:
Investment Grade,
Loans,
Analytics,
bonds,
junk bonds,
bond market,
market analytics,
New Issues,
News,
Syndicated Bonds,
syndicated,
research,
market update
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