High Yield Bond Research – March 28, 2019Posted on March 28, 2019
|Key Gainers and Losers||Volume Leaders|
|Pacific Gas & Electric Co. 6.05% 3/1/2034
Wachovia Capital Trust III FLT% 3/15/2042
|Industry Returns Tracker|
|New Issues||Forward Calendar|
|1. MGM Resorts International (USD) 5.5% 4/15/2027 (03/27/2019):1000MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5.5%.
2. Smithfield Foods Inc. (USD) 5.2% 4/1/2029 Reg S (03/27/2019):400MM Senior Unsecured Notes, Price at Issuance 99.492, Yielding 5.27%.
|1. ADT Inc.: $2.75B, Expected Q2 2019
2. Starwood Property Trust Inc: $300M senior notes, Expected Q1 2019
Realogy Group LLC. The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 3/22/19, with a net inflow of $1.8B, year-to-date $10B 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 XR14)
|SuperValu Inc. (5Y Sen USD MR14)
San Miguel Corp. (5Y Sen USD CR14)
Loans and Credit Market Overview
SYNDICATED LOANS HIGHLIGHTS:
Deals recently freed for secondary trading, notable secondary activity:
- Kirby Corp., Syneos Health, Inc., Fred Olsen Wind LTD, Carbonite 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 03/28/19
- Net positive capital flows into high-yield ETFs & mutual funds
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