TODAY MARKED THE END OF A STRONG WEEK for US stocks, after news of a potential federal interest rate cut boosted investors’ sentiment. Federal Reserve chairman Jerome Powell hasn’t set any parameters on the cut, but analysts are predicting it will be more than 25 basis points. The next monetary policy committee meeting will be held on July 31st. 10-Year Treasury note yields rose 3.5 basis pointstoday, after dipping below 2% yesterday. S&P -0.13%, DOW -0.13%, NASDAQ -0.24%.
Click Here for a Free Trial to Advantage Data Charting
IN THE CORPORATE BOND SPACE, news of an interest rate cut from the Federal Reserve indicates a positive environment for issuing new debt. As Treasury yields have declined,
corporate bond spreads have remained relatively low, inspiring optimism among investors. John Sheehan, a fixed-income portfolio manager at Osterweis Capital Management stated, “In this environment, where financial assets are all moving in the same direction,
it’s incredibly beneficial to [debt] issuers”.
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,
Pacific Gas & Electric Co. (USD) 3.5% 6/15/2025 made analysts' 'Conviction Buy' lists. (See the chart for
ADI Indices above.)
Andrew Robartes (
arobartes@advantagedata.com).
| Key Gainers and Losers |
Volume Leaders |
| + |
CVS Health Corp. 5.05% 3/25/2048 |
+ 0.1% |
| |
Pfizer Inc. 1.95% 6/3/2021 |
+ 0.2% |
| - |
Citigroup Inc. 4.65% 7/23/2048 |
-0.9% |
| |
Verizon Communications Inc. 4.125% 3/16/2027 |
-0.2% |
|
Tyson Foods Inc. 5.1% 9/28/2048
Comcast Corp. 4.7% 10/15/2048
|
| Industry Returns Tracker |
| Industry |
Past Day |
Past Week |
Past Month |
Past Quarter |
YTD |
Past Year |
| Agriculture, Forestry, Fishing |
0.17% |
0.65% |
2.89% |
4.38% |
8.30% |
5.26% |
| Mining |
0.39% |
0.86% |
2.12% |
3.90% |
8.33% |
8.71% |
| Construction |
0.10% |
0.74% |
2.54% |
3.79% |
5.99% |
7.13% |
| Manufacturing |
0.34% |
0.80% |
2.48% |
4.14% |
6.92% |
7.63% |
| Transportion, Communication, Electric/Gas |
0.38% |
1.03% |
2.96% |
5.15% |
8.67% |
10.39% |
| Wholesale |
0.26% |
0.64% |
2.13% |
4.23% |
7.64% |
7.97% |
| Retail |
0.37% |
0.92% |
2.63% |
4.26% |
7.55% |
8.04% |
| Finance, Insurance, Real-Estate |
0.22% |
0.56% |
1.91% |
3.38% |
6.26% |
7.74% |
| Services |
0.32% |
0.79% |
2.56% |
4.19% |
6.96% |
8.31% |
| Public Administration |
0.04% |
0.23% |
1.33% |
2.21% |
3.22% |
5.03% |
| Energy |
0.37% |
0.80% |
2.04% |
3.84% |
8.37% |
10.53% |
| |
| Total returns (non-annualized) by rating, market weighted. |
|
| New Issues |
New Issues [Continued] |
| 1. Spirit Realty LP (USD) 4% 7/15/2029 (06/20/2019): 400MM Senior Unsecured Notes, Price at Issuance 99.924, Yielding 4.01%. 2. HCP Inc. (USD) 3.25% 7/15/2026 (06/20/2019): 650MM Senior Unsecured Notes, Price at Issuance 99.906, Yielding 3.26%. |
|
Additional Commentary
NEW ISSUANCE WATCH: on 6/21/19 participants welcome a $165MM new corporate-bond offering by NorthShore Re LTD.
The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 6/14/19, with a net outflow of $1.7B, year-to-date $8.3B 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) |
San Miguel Corp. (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:
- Vidrala SA, Hilton Worldwide Finance LLC, US Renal Care Inc., Perforce Software 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 22 bp (basis points), as of 06/21/19
- 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
TODAY MARKED THE END OF A STRONG WEEK
for US stocks, after news of a
potential federal interest rate cut boosted investor
s’
sentiment. Federal Reserve chairman Jerome Powell hasn’t set any parameters on the cut, but analysts are predicting it will be
more than 25 basis points. The next
monetary policy committee meeting
will be held on
July 31
st
.
10-Year Treasury note yields rose
3.
5
basis points today, after
dipping below 2% yesterday.
S&P -0.13%,
DOW -0.13%,
NASDAQ -0.24%.
Read More
Topics:
Investment Grade,
Loans,
Analytics,
bonds,
junk bonds,
bond market,
market analytics,
New Issues,
News,
Syndicated Bonds,
syndicated,
research,
market update
Still 150,000 businesses do not have the proper paperwork
needed in order to continue
exporting
to the EU in the event of a
no-deal Brexit. While many have built up
contingency stocks,
these are estimated to
only last a few weeks
and so businesses will be
reliant on what the governments
are able to do to keep the
ports open. However, it was noted that the
financial system is prepared for a no-deal outcome.
FTSE 100 -0.38%,
German DAX -0.20%,
CAC 40 -0.19%,
STOXX Europe 600 -0.40%.
Read More
Topics:
Analytics,
bonds,
junk bonds,
bond market,
corporate bonds,
market analytics,
New Issues,
News,
research,
EU,
market update,
European
INVESTMENT-GRADE BONDS LURE over $3.65 billion of net inflows in the week ending on Wednesday marking the
third consecutive week of inflows. Analysts expect the inflows to continue as the
Fed’s dovish tone suggested interest rates will rise in the future.
Gold
jumped nearly 4 percent approaching 5-year highs as the Fed deviated from the “patient” stance on monetary policy.
The 10-year note fell 0.06 basis points
. S&P
+0.95%,
DOW +0.94,
NASDAQ
+0.80%.
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 BONDS LURE over $3.65 billion of net inflows in the week ending on Wednesday marking the third consecutive week of inflows. Analysts expect the inflows to continue as the Fed’s dovish tone suggested interest rates will rise in the future. Gold jumped nearly 4 percent approaching 5-year highs as the Fed deviated from the “patient” stance on monetary policy. The 10-year note fell 0.06 basis points. S&P +0.95%, DOW +0.94, NASDAQ +0.80%.
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 ITALIAN GOVERNMENT
PROPOSES
to use 5.2 billion euros in order to reduce the
budget deficit
for 2019 and avoid EU financial sanctions.
Crude oil prices surge
following Iran shooting down a US military surveillance drone in the
Strait of Hormuz rattling the oil markets
. The
pound rose 0.44 percent
against the
dollar
and
slipped 0.25 percent against the
euro
.
FTSE 100 +0.62%,
German DAX +0.80%,
CAC 40+0.71%,
STOXX Europe 600
+0.64%. The
10-year
Gilt lost 4.8 basis points.
Read More
Topics:
Analytics,
bonds,
junk bonds,
bond market,
corporate bonds,
market analytics,
New Issues,
News,
research,
EU,
market update,
European
THE FEDERAL RESERVE HOLDS THE CURRENT INTEREST RATES but suggests a rate cut on the horizon if the economy slows down. The Federal Reserve Chairman, Jerome Powell indicated they “will act as appropriate to sustain the expansion” going on 10-years and refrained from mentioning the word “patient”. Treasury yields dipped following the Feds announcement, the 10-year note fell 2.1 basis points. S&P +0.41%, DOW +0.29, NASDAQ +0.40%.
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
T
HE FEDERAL RESERVE HOLDS THE CURRENT INTEREST RATES but suggests a rate cut on the
horizon if the
economy slows down
. The Federal Reserve Chairman, Jerome Powell indicated they
“will act as appropriate to sustain the expansion”
going on 10-years and refrained from mentioning the word
“patient”.
Treasury yields dipped following the Feds announcement
,
the 10-year note fell 2.1 basis points
. S&P +0.41%,
DOW +0.29,
NASDAQ +0.40%.
Read More
Topics:
Investment Grade,
Loans,
Analytics,
bonds,
junk bonds,
bond market,
market analytics,
New Issues,
News,
Syndicated Bonds,
syndicated,
research,
market update
THE EUROPEAN COMMISSION REQUESTED ITALY to reduce its debt in order to
avoid disciplinary action
that could include
financial sanctions
. Last year Italy reached a budget deal averting sanctions after the commission had
rejected the initial budget
.
Currently, Italy’s debt is 132.2 percent of the GDP and according to forecasts it's expected to increase.
FTSE 100 -0.25%,
German DAX -0.14%,
CAC 40 +0.16%,
STOXX Europe 600 +0.01%. The
10-year Gilt rose 5.2 basis points.
Read More
Topics:
Analytics,
bonds,
junk bonds,
bond market,
corporate bonds,
market analytics,
New Issues,
News,
research,
EU,
market update,
European
US INVESTMENT GRADE DEBT ROSE AGAINST JUNK BONDS in net prices linked to actual trades after the European Central Bank President Mario Draghi announced the possibility of more stimulus if inflation stays low. US Treasury prices rallied for the second day as the Fed kicks off its two-day meeting. The 10-year note dipped 3.2 basis points. S&P +0.98%, DOW +1.36, NASDAQ +1.42%.
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
.png)
