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
GERMAN BUSINESS CONFIDENCE PLUMMETS to the lowest level in three years implying the European economy is experiencing a further slowdown. The business index dipped to 103.3 despite an estimate of 103.6, "Companies are less satisfied with their current business situation”. France’s manufacturing confidence dropped for the first time in five months hitting a two-and-a-half year low. Equities pulled back from eight-month highs as investors are concerned with China slowing the stimulus. The 10-year Gilt sank 4.5 basis points. FTSE 100 -0.63%, German DAX +0.52%, CAC 40 -0.36%, STOXX Europe 600 -0.08%.
Read More
Topics:
Analytics,
bonds,
junk bonds,
bond market,
corporate bonds,
market analytics,
New Issues,
News,
research,
EU,
market update,
European
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
EUROZONE PRIVATE SECTOR GROWTH DECELERATES IN APRIL as manufacturing
contracts for the second consecutive month. New export orders
collapse for the seventh straight
month
alongside services PMI dipping to a seventh month low of 55.6.
Retail sales rose
to a four-month high in March growing by 1.1 percent month over month,
year over year sales improved 6.7 percent. The
10-year
Gilt rose 1.7 basis points.
FTSE 100 +0.76%,
German DAX +0.15%,
CAC 40 +0.13%,
STOXX Europe 600+0.17%
Read More
Topics:
Analytics,
bonds,
junk bonds,
bond market,
corporate bonds,
market analytics,
New Issues,
News,
research,
EU,
market update,
European
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
GERMANY ONCE AGAIN CHOPS ITS 2019 GROWTH FORECAST for the second time in three months to 0.5 percent from 1 percent. Weak demand abroad has pushed
German manufacturing into a recessionmeanwhile domestic demand is booming aided by
record high employment. BDI Managing Director Joachim Lang acknowledges the state of the German economy,
“The best times for the economy are over”. The
10-year
Gilt rose 1.6 basis points.
FTSE 100 -0.04%,
German DAX +0.48%,
CAC 40 +0.49%,
STOXX Europe 600 +
0.07%
Read More
Topics:
Analytics,
bonds,
junk bonds,
bond market,
corporate bonds,
market analytics,
New Issues,
News,
research,
EU,
market update,
European
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