JUNK BONDS RETAIN A SLIGHT EDGE OVER INVESTMENT-GRADE DEBT in net prices linked to actual trades despite lackluster bank earnings. Goldman Sachs sank 3.41 percent upon releasing weaker than expected revenue for the first quarter, meanwhile, Citigroup reported a rise in profit by 2 percent from a year ago lifted by an expansion in U.S. consumer banking. “Both our consumer and institutional businesses performed well and we saw good momentum in those areas where we have been investing,” stated Chief Executive Mike Corbat. 10-year Treasury note slipped 1.9 basis points. S&P -0.07%, DOW-0.11%, NASDAQ -0.07%.
Investment Grade Bond Research – April 15, 2019Posted on April 15, 2019
|Key Gainers and Losers||Volume Leaders|
|Broadcom LTD 3.625% 10/15/2024 144A
HP Enterprise Services LLC 2.1% 10/4/2019 144A
|Industry Returns Tracker|
|New Issues||New Issues [Continued]|
(None Current 04/15/2019)
Floodsmart RE LTD. 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)
|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:
- 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 18 bp (basis points), as of 04/15/19
- Net positive capital flows into high-yield ETFs & mutual funds
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