The Dow Jones continued to fall Thursday, dropping 122.35 points as the Federal Reserve refused to lower interest rates. Worker productivity in the U.S. is advancing at the fastest rate since 2010. Additionally, 10-year U.S. Treasury notes rose 3.6 basis points. S&P -0.21%, Dow -0.46%, NASDAQ -0.16%.
Investment Grade Bond Research – May 2, 2019Posted on May 2, 2019
|Key Gainers and Losers||Volume Leaders|
|General Electric Co. FLT% PERP (1)
Ford Motor Credit Co. 4.389% 1/8/2026
|Industry Returns Tracker|
|New Issues||New Issues [Continued]|
|1. CNA Financial Corp. (USD) 3.9% 5/1/2029 (05/01/2019): 500MM Senior Unsecured Notes, Price at Issuance 99.902, Yielding 3.91%.
2. Goldman Sachs Group Inc. (USD) 3% 5/9/2025 (05/02/2019):95MM Unsecured Notes, Price at Issuance 100, Yielding 3%.
Starbucks Corp. The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 4/26/19, with a net outflow of $0.520B, year-to-date $13.8B flowed into high-yield.
|Top Widening Credit Default Swaps (CDS)||Top Narrowing Credit Default Swaps (CDS)|
|Rite Aid Corp. (5Y Sen USD XR14)
Hovnanian Enterprises Inc. (5Y Sen USD MR14)
|SuperValu Inc. (5Y Sen USD MR14)
San Miguel Corp. (5Y Sen USD CR14)
Loans and Credit Market Overview
SYNDICATED LOANS HIGHLIGHTS:
Deals recently freed for secondary trading, notable secondary activity:
- iHeartCommunications Inc., Flexera Software Inc., JBS USA LLC, Sundyne US Purchaser
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 05/02/19
- Net positive capital flows into high-yield ETFs & mutual funds
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