TREASURY YIELDS ROSE ON THURSDAY upon the release of positive economic data on the labor market calming fears of a slowing economy, 10-year Treasury note increased 3.4 basis points. Equities settled lower as investors anticipate a lackluster quarterly earnings season set to kick off this Friday. Chief equity strategist Terry Sandven at U.S. Bank Wealth Management sees opportunity, “Expectations for first-quarter results have been ratcheted down on the heels of sluggish global growth, so the bar is low and it could set the stage for upside surprises”. S&P -0.11%, DOW -0.19%, NASDAQ -0.31%
Investment Grade Bond Research – April 11, 2019Posted on April 11, 2019
|Key Gainers and Losers||Volume Leaders|
|Dell Intl LLC 4.9% 10/1/2026
Anheuser-Busch Co. Inc. 4.9% 2/1/2046 144A
|Industry Returns Tracker|
|New Issues||New Issues [Continued]|
|1. Public Storage (USD) 3.385% 5/1/2029 (04/10/2019): 500MM Senior Unsecured Notes, Price at Issuance 99.998, Yielding 3.39%.
2. Floodsmart RE LTD (USD) 0.5% 3/7/2022 (04/11/2019): 50MM Unsecured Notes, Price at Issuance 100, Yielding .5%.
Public Storage. The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 4/5/19, with a net inflow of $2.0B, year-to-date $12.0B 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)
|Road King Infrastructure LTD (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:
- Six Flags Inc., MW Industries Inc., Ultimate Software Group, Crossamerica Partners LP
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 19 bp (basis points), as of 04/11/19
- Net positive capital flows into high-yield ETFs & mutual funds
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