North American Bond Research – April 2, 2020

Key Gainers and Losers

Volume Leaders

+   Charter Communications Operating LLC 4.8% 3/1/2050 +0.4%   Whiting Petroleum Corp. 6.625% 1/15/2026 +143.8%   Callon Petroleum Co. 6.125% 10/1/2024 +25.0%   Carrizo Oil & Gas Inc. 6.25% 4/15/2023 +5.3%   HCA Inc. 4.75% 5/1/2023 +0.3% –   Petrobras Global Finance BV 7.375% 1/17/2027 -0.9%   American General Finance Corp. 7.75% 10/1/2021 -1.8%   Oasis Petroleum Inc. 6.875% 3/15/2022 (1) -14.5%   T-Mobile USA Inc. 4.75% 2/1/2028 -0.3%   Sprint Nextel Corp. 6% 11/15/2022 -0.0%

Charter Communications Operating LLC   4.8% 3/1/2050 Petrobras Global Finance BV   7.375% 1/17/2027 Whiting Petroleum Corp.   6.625% 1/15/2026 American General Finance Corp.   7.75% 10/1/2021 Callon Petroleum Co.   6.125% 10/1/2024

Industry Returns Tracker

Industry Past Day Past Week Past Month Past Quarter YTD Past Year Agriculture, Forestry, Fishing 0.02% 7.90% -12.17% -11.81% -11.79% -1.33% Mining -1.04% 2.11% -35.99% -39.99% -39.98% -32.20% Construction -0.21% 1.84% -11.07% -9.44% -9.43% 0.28% Manufacturing -0.34% 5.36% -10.49% -9.83% -9.82% -1.17% Transportion, Communication, Electric/Gas -0.46% 4.74% -11.37% -10.46% -10.44% -1.17% Wholesale -0.52% 3.42% -13.74% -13.76% -13.74% -4.78% Retail -0.52% 4.05% -15.29% -15.25% -15.23% -2.83% Finance, Insurance, Real-Estate -0.20% 4.86% -11.00% -10.22% -10.21% -0.40% Services -0.46% 5.68% -11.27% -10.98% -10.97% -1.70% Public Administration -1.00% 9.47% -13.30% -12.09% -12.07% -3.70% Energy -0.86% 2.28% -36.35% -39.68% -39.67% -32.83%   Total returns (non-annualized) by rating, market weighted.

New Issues

Forward Calendar

(None Current 04/02/2020)

1. AVI-SPL: $370MM covenant lite TLB (B2/B) 2. Service Logic: $140MM bank debt: $40MM TL; $100MM DD TL 3. CJ Foods Inc.: $285MM TLB 4. Cornerstone Ondemand Inc.: $1.135MM senior secured credit facilities: $150MM revolver; $985MM TLB 5. Eldorado Resorts Inc./Caesars Entertainment Corp.: $6.4B credit facilities:$1B revolver at Eldorados; $3B seven-year cove-lite TLB due 2027 at Eldorado; $2.4B seven-year cove-lite TLB due 2027 at Caesars Resorts Collection 6. Innovate Xcessories & Services LLC: $695MM credit facilities: $75MM revolver; $620MM TL(B2/B) 7. Instructure: $825MM senior secured credit facilities: $50MM revolver; $775MM TL 8. RSA: $1.425B credit facilities: $75MM revolver; $1B TL; $350MM TL 9. Snapav: $390MM term loans: $290MM TL (B2); $100MM TL 10. Tata Chemicals North America Inc. : $380MM TL (Ba3)

NEW ISSUANCE WATCH: No new issues  The most recent data showed money flowed in of ETF/mutual funds for the week ended 01/10/2020, with a net inflow of $9.8 billion.

Top Widening Loans	Top Narrowing Loans
Cabot Microelectronics Corp. (USD) TLB L+200 11/15/2025 Olam Intl. LTD (USD) RC 09/28/2021 Tata Steel LTD (USD) TLA L+200 06/21/2024 Arvos Holding (EUR) TLB2 E+450 08/29/2021 B&M Retail LTD (GBP) TLA L+200 07/31/2021	New Arclin US Holding Corp (USD) TL L+875 02/14/2025 AI Convoy Luxembourg Sarl (USD) TL L+350 01/20/2027 Applovin Corp. (USD) TLB L+375 08/15/2025 Ascend Performance Materials LLC (USD) TLB L+525 08/27/2026 Hamilton Holdco LLC (USD) TLB L+200 01/02/2027

SYNDICATED LOANS HIGHLIGHTS:

Deals recently freed for secondary trading, notable secondary activity:

• Symantec Corp., Broadcom LTD, Toll Brothers Inc., Cole-Parmer Instrument Co.

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  137 bp (basis points), as of 04/2/2020
• Net negative capital flows into high-yield ETFs & mutual funds

MARKETS WERE UP, DESPITE HUGE JOB LOSSES WHEN PRESIDENT TRUMP STATED THAT THE OIL WAR WAS CLOSE TO OVER. PEOPLE ARE SPECULATING THAT TRUMP WANTS TO FORM A GRAND PARTNERSHIP WITH RUSSIA AND SAUDI ARABIA. 10 Year Treasury notes were down 0.8 basis points. S&P +2.28%, Dow +2.24%, NASDAQ +1.72%.

CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 1030000+ CASES AND 53000+ DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 245000+ CASES AND 6000+ DEATHS.   Among high-grade bonds showing topmost price gains at appreciable volumes traded, Baker Hughes Inc. (USD) 4.08% 12/15/2047 made analysts’ ‘Conviction Buy’ list. (See the chart below for Baker Hughes Inc. bonds) Pierre Robert

Key Gainers and Losers

Volume Leaders

+   Oracle Corp. 3.6% 4/1/2050 +1.8%   Oracle Corp. 3.6% 4/1/2040 +0.2%   Visa Inc. 2.7% 4/15/2040 +0.2%   Oracle Corp. 2.5% 4/1/2025 +0.2%   HSBC Hldg PLC 4.95% 3/31/2030 +0.0%   Oracle Corp. 3.85% 4/1/2060 +0.5% –   Toyota Motor Credit Corp. 3.375% 4/1/2030 -5.2%   Goldman Sachs Group Inc. 3.5% 4/1/2025 -0.2%   TJX Cos. Inc. 3.875% 4/15/2030 -0.3%   Lowe’s Companies Inc. 5.125% 4/15/2050 -1.0%   Wells Fargo & Co. 5.013% 4/4/2051 -0.6%

Oracle Corp.   3.6% 4/1/2050 Toyota Motor Credit Corp.   3.375% 4/1/2030 Goldman Sachs Group Inc.   3.5% 4/1/2025 Oracle Corp.   3.6% 4/1/2040 Visa Inc.   2.7% 4/15/2040 TJX Cos. Inc.   3.875% 4/15/2030 Oracle Corp.   2.5% 4/1/2025 HSBC Hldg PLC   4.95% 3/31/2030 Lowe’s Companies Inc.   5.125% 4/15/2050 Wells Fargo & Co.   5.013% 4/4/2051

Industry Returns Tracker

Industry Past Day Past Week Past Month Past Quarter YTD Past Year Agriculture, Forestry, Fishing 0.68% 1.96% -6.67% -3.24% -3.23% 4.10% Mining -0.33% 2.68% -16.93% -14.92% -14.91% -3.40% Construction 0.36% 2.50% -10.46% -7.31% -7.30% 0.79% Manufacturing 0.03% 3.63% -4.63% -1.44% -1.43% 7.28% Transportion, Communication, Electric/Gas 0.29% 4.98% -7.07% -3.11% -3.10% 7.06% Wholesale -0.15% 2.34% -6.41% -4.07% -4.06% 4.72% Retail 0.16% 4.02% -5.14% -1.77% -1.76% 7.57% Finance, Insurance, Real-Estate 0.00% 2.99% -4.29% -1.64% -1.62% 5.74% Services 0.03% 3.35% -4.71% -1.47% -1.46% 7.31% Public Administration 0.04% 0.39% 1.39% 3.35% 3.35% 6.10% Energy -0.09% 3.55% -16.41% -14.43% -14.42% -4.30%   Total returns (non-annualized) by rating, market weighted.

New Issues

New Issues [Continued]

1. TransCanada PipeLines LTD (CAD) 3.8% 4/5/2027 (04/01/2020): 2000MM Senior Unsecured Notes, Price at Issuance 99.841, Yielding 3.83%. 2. Equinor ASA (USD) 3% 4/6/2027 (04/01/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.506, Yielding 3.08%. 3. Penske Truck Leasing (USD) 4% 7/15/2025 144A (04/01/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.676, Yielding 4.07%. 4. Dollar General Corp. (USD) 3.5% 4/3/2030 (04/01/2020): 1000MM Senior Unsecured Notes, Price at Issuance 99.933, Yielding 3.51%. 5. Dollar General Corp. (USD) 4.125% 4/3/2050 (04/01/2020): 500MM Senior Unsecured Notes, Price at Issuance 98.997, Yielding 4.18%. 6. PPL Capital Funding Inc. (USD) 4.125% 4/15/2030 (04/01/2020): 1000MM Senior Unsecured Notes, Price at Issuance 99.966, Yielding 4.13%. 7. NextEra Energy Capital Holding Inc. (USD) 2.75% 5/1/2025 (04/01/2020): 1250MM Senior Unsecured Notes, Price at Issuance 99.858, Yielding 2.78%. 8. Anheuser-Busch Inbev Worldwide Inc. (USD) 4.5% 6/1/2050 (04/01/2020): 2250MM Senior Unsecured Notes, Price at Issuance 99.924, Yielding 4.5%. 9. Anheuser-Busch Inbev Worldwide Inc. (USD) 4.6% 6/1/2060 (04/01/2020): 1000MM Senior Unsecured Notes, Price at Issuance 99.916, Yielding 4.6%. 10. Anheuser-Busch Inbev Worldwide Inc. (USD) 3.5% 6/1/2030 (04/01/2020): 1750MM Senior Unsecured Notes, Price at Issuance 99.79, Yielding 3.52%.

NEW ISSUANCE WATCH: on 04/02/2020 participants welcome a $5000MM new corporate-bond offering by Anheuser-Busch Imbev Worldwide. The most recent data showed money flowed in of ETF/mutual funds for the week ended 01/10/2020, with a net inflow of $9.8 billion.

Top Widening Loans	Top Narrowing Loans
Cabot Microelectronics Corp. (USD) TLB L+200 11/15/2025 Olam Intl. LTD (USD) RC 09/28/2021 Tata Steel LTD (USD) TLA L+200 06/21/2024 Arvos Holding (EUR) TLB2 E+450 08/29/2021 B&M Retail LTD (GBP) TLA L+200 07/31/2021	New Arclin US Holding Corp (USD) TL L+875 02/14/2025 AI Convoy Luxembourg Sarl (USD) TL L+350 01/20/2027 Applovin Corp. (USD) TLB L+375 08/15/2025 Ascend Performance Materials LLC (USD) TLB L+525 08/27/2026 Hamilton Holdco LLC (USD) TLB L+200 01/02/2027

SYNDICATED LOANS HIGHLIGHTS:

Deals recently freed for secondary trading, notable secondary activity:

• Symantec Corp., Broadcom LTD, Toll Brothers Inc., Cole-Parmer Instrument Co.

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 137 bp (basis points), as of 04/2/2020
• Net positive capital flows into high-yield ETFs & mutual funds

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