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%
Investment Grade Bond Research – April 23, 2019Posted on April 23, 2019
|Key Gainers and Losers||Volume Leaders|
|Molson Coors Brewing Co. 2.25% 3/15/2020
Celgene Corp. 3.875% 8/15/2025
|Industry Returns Tracker|
|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%.
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)
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
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