North American Bond Research – February 13, 2020Posted on February 13, 2020
HIGH YIELD BOND RESEARCH
February 13, 2020
|Key Gainers and Losers||Volume Leaders|
|Deutsche Bank AG 6% PERP
Communications Sales & Leasing Inc. 8.25% 10/15/2023
HCA Inc. 3.5% 9/1/2030
|Industry Returns Tracker|
|New Issues||Forward Calendar|
|1. RED Oak Capital Fund IV, LLC (USD) 9% 6/30/2026 (02/12/2020): 50MM Secured Notes, Price at Issuance 100, Yielding 9%.
2. HCA Inc. (USD) 3.5% 9/1/2030 (02/12/2020): 2700MM Senior Unsecured Notes, Price at Issuance 100, Yielding 3.5%.
3. Hopson Capital Intl. Group Co. LTD (USD) 6% 2/17/2021 (02/12/2020): 500MM Senior Unsecured Notes.
4. Deutsche Bank AG (USD) 6% PERP (02/12/2020): 1250MM Junior Subordinated Notes, Price at Issuance 100.028.
5. Hecla Mining Co. (USD) 7.25% 2/12/2028 (02/13/2020): 475MM Senior Unsecured Notes, Price at Issuance 100, Yielding 7.25%.
|1. Qmax Financial Holdings Inc.: $225MM, Expected 4th Quarter 2019
2. Calpine Corp.: $1.4B bonds, Expected Q4 2019
3. Diamondback Energy Inc.: High-yield notes, Expected Q4 2019
4. DDM Holding AG: ¬100MM, Expected Q4 2019
5. Presidio Inc.: $1.775B high yield bonds, Expected 4th Quarter 2019
6. Alpha Auto Group: $225MM notes, Expected 4th Quarter 2019
Castle US Holdings. The most recent data showed money flowed in of ETF/mutual funds for the week ended 01/10/2020, with a net inflow of $9.8 billion.
|Top Widening Credit Default Swaps (CDS)||Top Narrowing Credit Default Swaps (CDS)|
|Rite Aid Corp. (5Y Sen USD MR14)
Weatherford International LTD (5Y Sen USD MR14)
Hertz Corp. (5Y Sen USD CR14)
|Ghana, Republic of (5Y Sen USD CR14)
Road King Infrastructure LTD (5Y Sen USD CR14)
Export Credit Bank of Turkey (5Y Sen USD CR14)
SYNDICATED LOANS HIGHLIGHTS:
Deals recently freed for secondary trading, notable secondary activity:
- Symantec Corp., Broadcom LTD, Toll Brothers Inc., Cole-Parmer Instrument Co.
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 13 bp (basis points), as of 02/13/2020
- Net negative capital flows into high-yield ETFs & mutual funds
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