Grid IconAll Posts Market Summaries

North American Bond Research – April 20, 2020

Posted on April 20, 2020
HIGH YIELD BOND RESEARCH
April 20, 2020
Bond Markets

OIL CRASHED TO ZERO AS OIL CONTRACTS EXPIRE LATER THIS MONTH. BANKRUPTCIES ARE SURGING AS CERTAIN INDUSTRIES DEAL WITH A CLOSED ECONOMY. CORONAVIRUSE CASES AND DEATHS CONTINUE TO SLOW. 10 Year Treasury notes were down 2.8 basis points. S&P -1.23%,  Dow -2.44%, NASDAQ -1.03%.
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 2.5 MILLION+ CASES AND 170000+ DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 780000+ CASES AND 42000+ DEATHS.  Among high-grade bonds showing topmost price gains at appreciable volumes traded, Ford Motor Co (USD) 7.4% 11/1/2046 made analysts’ ‘Conviction Buy’ list. (See the chart below for Ford Motor Co bonds) Pierre Robert
Key Gainers and Losers Volume Leaders
+   HCA Inc. 5.25% 4/15/2025 +0.1%
  HCA Inc. 5% 3/15/2024 +0.4%
  Meredith Corp. 6.875% 2/1/2026 +0.8%
  Micron Technology Inc. 4.975% 2/6/2026 +1.0%
  Macy’s Retail Hldg Inc. 3.875% 1/15/2022 +4.7%
–   Steel Dynamics 5.25% 4/15/2023 -0.1%
  Barclays Bank PLC 5.14% 10/14/2020 -1.0%
  Western Digital Corp. 4.75% 2/15/2026 -1.8%
  Petrobras Global Finance BV 6.85% 6/5/2115 -4.4%
  Azul Investments LLP 5.875% 10/26/2024 Reg S -1.2%
Ford Motor Co.   9% 4/22/2025
Ford Motor Co.   8.5% 4/21/2023
Ford Motor Co.   9.625% 4/22/2030
Steel Dynamics   5.25% 4/15/2023
Barclays Bank PLC   5.14% 10/14/2020
HCA Inc.   5.25% 4/15/2025
HCA Inc.   5% 3/15/2024
Meredith Corp.   6.875% 2/1/2026
Micron Technology Inc.   4.975% 2/6/2026
Western Digital Corp.   4.75% 2/15/2026
Industry Returns Tracker
Industry Past Day Past Week Past Month Past Quarter YTD Past Year
Agriculture, Forestry, Fishing -0.24% 3.79% 8.77% -6.72% -5.65% 4.99%
Mining -0.35% 0.16% -2.29% -33.05% -32.54% -23.16%
Construction 0.21% 3.10% -1.51% -6.95% -6.08% 3.05%
Manufacturing 0.18% 2.97% 2.53% -6.51% -5.45% 2.31%
Transportion, Communication, Electric/Gas 0.34% 3.27% 5.71% -4.13% -3.16% 4.50%
Wholesale 0.60% 3.61% 2.26% -9.38% -8.20% -1.15%
Retail 0.09% 1.29% -2.31% -12.63% -11.76% -1.93%
Finance, Insurance, Real-Estate 0.27% 2.54% 0.86% -7.27% -6.45% 1.33%
Services 0.44% 3.57% 3.50% -6.47% -5.55% 2.82%
Public Administration -2.24% 3.56% 1.83% -9.94% -9.22% -0.75%
Energy -0.02% 1.99% 0.44% -30.86% -30.37% -22.25%
 
Total returns (non-annualized) by rating, market weighted.

New Issues Forward Calendar

(None Current 04/20/2020)
1. Open Lending LLC: $225MM TLB

2. Xperi Corp. : $1.1B seven-year secured covenant lite TLB

3. Whole Earth Brands (ACT II GLOBAL ACQUISTION CORP.):: $235 MM credit facilities: $50MM reolver; $185MM term A

4. T-Mobile USA Inc.: $8B senior secured credit facilities: $4B five-year revolver; $4B seven-year cove-lite TL

5. Tata Chemicals North America Inc. : $380MM TL (Ba3)

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. Service Logic: $140MM bank debt: $40MM TL; $100MM DD TL

Additional Commentary

NEW ISSUANCE WATCH: No New Issues today.
Top Widening Loans Top Narrowing Loans
Refinitiv US Hldg Inc. (USD) RC L+300 10/01/2023
Philadelphia Energy Solutions (USD) TL DIP PIK L+625 12/31/2022
HUB Intl. LTD (USD) RC L+350 04/25/2023
FeeCo (USD) RC 02/28/2023
Celestica Inc. (USD) TLB L+250 06/27/2025
Logoplaste (EUR) TLB E+400 10/31/2023
Boluda Towage SL (EUR) TLB1 E+350 08/01/2026
Affidea BV (EUR) TLB E+375 12/04/2026
PaySimple Inc. (USD) TL L+550 08/23/2025
Webhelp SA (EUR) TLB E+350 08/08/2026

Loans and Credit Market Overview

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  100 bp (basis points), as of 04/20/2020
  • Net negative capital flows into high-yield ETFs & mutual funds

 

INVESTMENT GRADE BOND RESEARCH
April 20, 2020
Bond Markets

OIL CRASHED TO ZERO AS OIL CONTRACTS EXPIRE LATER THIS MONTH. BANKRUPTCIES ARE SURGING AS CERTAIN INDUSTRIES DEAL WITH A CLOSED ECONOMY. CORONAVIRUSE CASES AND DEATHS CONTINUE TO SLOW. 10 Year Treasury notes were down 2.8 basis points. S&P -1.23%, Dow -2.44%, NASDAQ -1.03%.
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 2.5 MILLION+ CASES AND 170000+ DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 780000+ CASES AND 42000+ DEATHS. Among high-grade bonds showing topmost price gains at appreciable volumes traded, Ford Motor Co (USD) 7.4% 11/1/2046 made analysts’ ‘Conviction Buy’ list. (See the chart below for Ford Motor Co bonds) Pierre Robert
Key Gainers and Losers Volume Leaders
+   Charter Communications Operating LLC 2.8% 4/1/2031 +0.1%
  Citigroup Inc. 4.412% 3/31/2031 +0.1%
  Costco Wholesale Corp. 1.375% 6/20/2027 +0.1%
  General Electric Co. 4.25% 5/1/2040 +0.0%
  Visa Inc. 3.15% 12/14/2025 +0.3%
–   Costco Wholesale Corp. 1.6% 4/20/2030 -0.3%
  General Electric Co. 3.625% 5/1/2030 -0.0%
  JPMorgan Chase & Co. 2.083% 4/22/2026 -0.1%
  Marriott Intl Inc. 5.75% 5/1/2025 -0.4%
  JPMorgan Chase & Co. 2.522% 4/22/2031 -0.1%
Costco Wholesale Corp.   1.6% 4/20/2030
General Electric Co.   3.625% 5/1/2030
JPMorgan Chase & Co.   2.083% 4/22/2026
Marriott Intl Inc.   5.75% 5/1/2025
JPMorgan Chase & Co.   2.522% 4/22/2031
Exxon Mobil Corp.   3.452% 4/15/2051
General Electric Co.   4.35% 5/1/2050
Booking Hldgs Inc.   4.1% 4/13/2025
Exxon Mobil Corp.   2.61% 10/15/2030
Exxon Mobil Corp.   4.227% 3/19/2040
Industry Returns Tracker
Industry Past Day Past Week Past Month Past Quarter YTD Past Year
Agriculture, Forestry, Fishing -0.23% 1.80% 0.82% -0.88% -0.13% 5.03%
Mining 0.07% 3.50% 3.10% -6.70% -6.02% 2.69%
Construction 0.10% 3.57% 1.80% -3.08% -2.25% 5.35%
Manufacturing -0.04% 2.20% 3.83% 1.52% 2.29% 10.66%
Transportion, Communication, Electric/Gas -0.05% 3.67% 6.53% 1.76% 2.76% 12.66%
Wholesale 0.04% 2.48% 1.17% -0.77% -0.08% 8.65%
Retail -0.14% 2.41% 4.27% 2.46% 2.97% 12.67%
Finance, Insurance, Real-Estate -0.05% 1.78% 2.36% 0.39% 0.98% 8.10%
Services 0.02% 2.24% 3.44% 1.28% 1.97% 10.61%
Public Administration 0.01% 0.23% 0.58% 3.24% 3.50% 6.38%
Energy 0.10% 4.39% 4.75% -6.23% -5.70% 2.70%
 
Total returns (non-annualized) by rating, market weighted.

New Issues New Issues [Continued]

(None Current 04/20/2020)
Additional Commentary

NEW ISSUANCE WATCH: on 04/17/2020 participants welcome a $1250MM new corporate-bond offering by Costco Wholesale Corp.
Top Widening Loans Top Narrowing Loans
Refinitiv US Hldg Inc. (USD) RC L+300 10/01/2023
Philadelphia Energy Solutions (USD) TL DIP PIK L+625 12/31/2022
HUB Intl. LTD (USD) RC L+350 04/25/2023
FeeCo (USD) RC 02/28/2023
Celestica Inc. (USD) TLB L+250 06/27/2025
Logoplaste (EUR) TLB E+400 10/31/2023
Boluda Towage SL (EUR) TLB1 E+350 08/01/2026
Affidea BV (EUR) TLB E+375 12/04/2026
PaySimple Inc. (USD) TL L+550 08/23/2025
Webhelp SA (EUR) TLB E+350 08/08/2026

Loans and Credit Market Overview

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 100 bp (basis points), as of 04/20/2020
  • Net positive capital flows into high-yield ETFs & mutual funds

Copyright 2020 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 300,000+ BDC fair value assessments dating back to 2000
  • Over 22,000+ syndicated loans
  • Over 100 equity markets worldwide
  • One platform 15 products and services from debt to loans to mid-market
  • Used by top buy and sell-side firms worldwide

Share

facebook share icon twitter share icon linkedin share icon
Ready to get Started? Free Trial