JOBLESS CLAIMS SPIKE by 37,000 soaring past 200,000 hitting a two-and-half month high, economists attribute the Easter, Passover and spring break for the rise. Despite the uptick, in unemployment applications, the economy remains sound. “Company CEOs may have feared recession in surveys taken at the start of the year, but those concerns have faded” said Chris Rupkey, chief economist at MUFG in New York. The 10-year note rose 0.8 basis points. S&P +0.13%, DOW-0.32%, NASDAQ+0.37%.
Investment Grade Bond Research – April 25, 2019Posted on April 25, 2019
|Key Gainers and Losers||Volume Leaders|
|Bayer US Finance LLC 4.375% 12/15/2028 144A
UniCredit SpA 6.572% 1/14/2022 144A
|Industry Returns Tracker|
|New Issues||New Issues [Continued]|
|1. JBS USA LLC (USD) 5.875% 7/15/2024 (04/24/2019): 150MM Senior Unsecured Notes, Price at Issuance 101.75, Yielding 5.48%.
2. Netflix Inc. (USD) 5.375% 11/15/2029 144A (04/24/2019): 900MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5.38%.
Cantor Fitzgerald LP. 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 XR14)
|Cable & Wireless Communication (5Y Sen USD CR14)
SuperValu Inc. (5Y Sen USD MR14)
Loans and Credit Market Overview
SYNDICATED LOANS HIGHLIGHTS:
Deals recently freed for secondary trading, notable secondary activity:
- Sundyne US Purchaser, Prysmian, Project Maple II BV, Trade Me Group LTD, Jane Street
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 17 bp (basis points), as of 04/25/19
- Net positive capital flows into high-yield ETFs & mutual funds
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