INVESTMENT-GRADE DEBT REGAINED FAVOR as investors scaled back risk upon additional weak economic data released on Friday. Manufacturing output slipped for the second straight month extending fears of a slowing economy following the release of poor data earlier this week. Output dipped 0.4 percent in February and decreased 0.5 percent in January. The 10-year U.S. Treasury note declined 0.3 basis point. The S&P rose +0.50%, the gained Dow +0.54%, while the settled NASDAQ +0.59% higher.
Investment Grade Bond Research – March 15, 2019Posted on March 15, 2019
|Key Gainers and Losers||Volume Leaders|
|Verizon Communications Inc. 4.016% 12/3/2029 144A
Dell Intl LLC 5.3% 10/1/2029 144A
|Industry Returns Tracker|
|New Issues||New Issues [Continued]|
|1. Synchrony Financial (USD) 4.375% 3/19/2024 (03/14/2019):600MM Senior Unsecured Notes, Price at Issuance 99.756, Yielding 4.43%.
2. Independent Bank Group Inc. (USD) 4.75% 3/15/2029 (03/14/2019): 50MM Subordinated Notes, Price at Issuance 100, Yielding 4.75%.
JPMorgan Chase & Co. The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 3/8/2019, with a net outflow of $1.69B, year-to-date $7.8B 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:
- XPO Logistics Inc., MYOB LTD, Dell International, Amer Sports Corp.
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 03/15/19
- Net positive capital flows into high-yield ETFs & mutual funds
Copyright 2019 Advantage Data Inc. All Rights Reserved. http://www.advantagedata.com
Information in this document should not be regarded as an offer to sell or solicitation of an offer to buy bonds or any financial instruments referred to herein. All information provided in this document is believed to be accurate. However, Advantage Data and its sources make no warranties, either express or implied, as to any matter whatsoever, including but not limited to warranties of merchantability or fitness for a particular purpose. Opinions in this document are subject to change without notice. Electronic redistribution, photocopying and any other electronic or mechanical reproduction is strictly prohibited without prior written permission from Advantage Data Inc.
Are you using AdvantageData?
AdvantageData is your fixed income solution for pricing, analytics, reports, and insight on approximately:
- 500,000+ U.S. and international corporate bonds
- Over 6,200+ CDS reference entities
- Over 22,000+ syndicated loans
- Over 100 equity markets worldwide
- One platform 16 products and services from debt to CDS to loans to mid-market
- Used by top buy and sell-side firms worldwide