North American Bond Research – April 3, 2020

Key Gainers and Losers

Volume Leaders

+   Hilton Worldwide Finance LLC 4.875% 4/1/2027 +1.0%   Expedia Inc. 5.95% 8/15/2020 +1.3%   Ally Financial Inc. 4.125% 2/13/2022 +1.2%   Western Gas Partners LP 5.3% 3/1/2048 +11.4%   Intl Lease Finance Corp. 8.25% 12/15/2020 +1.2% –   General Motors Co. 6.25% 10/2/2043 -2.8%   HCA Inc. 3.5% 9/1/2030 -1.0%   General Motors Co. 4.875% 10/2/2023 -2.0%   SLM Corp. (USD) 5.5% 1/25/2023 -1.0%   Charter Communications Operating LLC 4.8% 3/1/2050 -1.7%

General Motors Co.   6.25% 10/2/2043 Hilton Worldwide Finance LLC   4.875% 4/1/2027 Ally Financial Inc.   4.125% 2/13/2022 Expedia Inc.   5.95% 8/15/2020 HCA Inc.   3.5% 9/1/2030 Western Gas Partners LP   5.3% 3/1/2048 Intl Lease Finance Corp.   8.25% 12/15/2020 General Motors Co.   4.875% 10/2/2023 SLM Corp.   (USD) 5.5% 1/25/2023 Whiting Petroleum Corp.   6.625% 1/15/2026

Industry Returns Tracker

Industry Past Day Past Week Past Month Past Quarter YTD Past Year Agriculture, Forestry, Fishing -0.16% 4.49% -12.16% -12.12% -11.94% -1.86% Mining 0.42% 0.09% -35.82% -40.42% -40.01% -32.24% Construction -0.08% 1.53% -11.31% -9.83% -9.68% 0.33% Manufacturing -0.38% 3.55% -11.22% -10.65% -10.51% -1.47% Transportion, Communication, Electric/Gas -0.22% 2.15% -11.61% -10.82% -10.69% -1.49% Wholesale -0.23% 1.63% -14.09% -14.36% -14.20% -5.54% Retail -0.49% 1.36% -15.61% -15.74% -15.64% -3.44% Finance, Insurance, Real-Estate -0.16% 2.77% -11.17% -10.66% -10.52% -0.70% Services -0.45% 3.24% -11.69% -11.66% -11.56% -2.21% Public Administration -1.24% 6.20% -14.46% -13.52% -13.15% -5.00% Energy 0.78% 1.42% -35.95% -39.79% -39.52% -32.63%   Total returns (non-annualized) by rating, market weighted.

New Issues

Forward Calendar

1. Tenet Healthcare Corp. (USD) 7.5% 4/1/2025 144A (04/02/2020): 700MM First Lien Notes, Price at Issuance 100, Yielding 7.5%. 2. Tenet Healthcare Corp. (USD) 7.5% 4/1/2025 Reg S (04/02/2020): 700MM First Lien Notes, Price at Issuance 100, Yielding 7.5%. 3. NEW Red Finance, Inc. (USD) 5.75% 4/15/2025 144A (04/02/2020): 500MM First Lien Notes, Price at Issuance 100, Yielding 5.75%. 4. NEW Red Finance, Inc. (USD) 5.75% 4/15/2025 Reg S (04/02/2020): 500MM First Lien Notes, Price at Issuance 100, Yielding 5.75%.

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: Tenet Healthcare Corp put out $1400 MM issues on 4/3/2020.  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
J Crew Group Inc. (USD) TLB L+322 03/06/2021 Arvos Holding (EUR) TLB2 E+450 08/29/2021 Advantage Sales & Marketing Inc. (USD) TL2 L+650 07/25/2022 Tipico Co. LTD (EUR) TLB E+350 08/08/2022 Quest Software US Holdings Inc (USD) TL L+425 05/17/2025	Booz Allen Hamilton Inc. (USD) TL L+175 11/22/2026 Concordia International (EUR) TL E+525 09/06/2024 Hamilton Holdco LLC (USD) TLB L+200 01/02/2027 Prosol Gestion (EUR) TLB E+400 04/21/2024 ATI Holdings (USD) TLB L+350 05/10/2023

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  130 bp (basis points), as of 04/3/2020
• Net negative capital flows into high-yield ETFs & mutual funds

MARKETS ARE DOWN AS VIRUS CASE AND DEATH COUNTS CONTINUE TO RISE. JOB LOSES CONTINUE TO PILE ON AS THE US REPORTS 700k JOB PAYROLL DIVE. 10 Year Treasury notes were down 4 basis points. S&P -1.51%, Dow -1.69%, NASDAQ -1.53%.

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

+   Citibank NA 3.05% 5/1/2020 +0.3%   General Dynamics Corp. 4.25% 4/1/2050 +0.2%   Oracle Corp. 2.95% 4/1/2030 +0.1%   Dollar General Corp. 4.125% 4/3/2050 +0.2%   Nike Inc. 3.375% 3/27/2050 +0.2% –   Coca-Cola Co. 4.2% 3/25/2050 -2.9%   Anheuser-Busch Inbev Worldwide Inc. 3.5% 6/1/2030 -1.4%   Oracle Corp. 3.6% 4/1/2050 -0.1%   Nvidia Corp. 2.85% 4/1/2030 -1.1%   Lowe’s Companies Inc. 5.125% 4/15/2050 -0.3%

Coca-Cola Co.   4.2% 3/25/2050 Anheuser-Busch Inbev Worldwide Inc.   3.5% 6/1/2030 Oracle Corp.   3.6% 4/1/2050 Nvidia Corp.   2.85% 4/1/2030 Lowe’s Companies Inc.   5.125% 4/15/2050

Industry Returns Tracker

Industry Past Day Past Week Past Month Past Quarter YTD Past Year Agriculture, Forestry, Fishing -0.11% 1.57% -6.78% -3.41% -3.33% 4.19% Mining 0.43% 1.67% -16.43% -14.74% -14.62% -3.23% Construction 0.11% 2.38% -9.89% -7.14% -7.07% 0.44% Manufacturing -0.07% 2.34% -5.00% -1.77% -1.65% 7.15% Transportion, Communication, Electric/Gas -0.00% 3.31% -7.01% -3.07% -2.92% 7.35% Wholesale 0.10% 1.35% -7.00% -4.58% -4.51% 4.35% Retail -0.01% 2.45% -5.40% -2.07% -1.95% 7.30% Finance, Insurance, Real-Estate -0.05% 1.86% -4.57% -1.89% -1.79% 5.51% Services 0.00% 2.01% -5.02% -1.57% -1.43% 7.45% Public Administration 0.01% 0.37% 1.21% 3.41% 3.37% 6.28% Energy 0.36% 2.35% -15.80% -14.09% -13.97% -4.00%   Total returns (non-annualized) by rating, market weighted.

New Issues

New Issues [Continued]

1. Hyundai Capital America (USD) 5.75% 4/6/2023 144A (04/02/2020): 550MM Senior Unsecured Notes, Price at Issuance 99.886, Yielding 5.79%. 2. Hyundai Capital America (USD) 6.375% 4/8/2030 Reg S (04/02/2020): 650MM Senior Unsecured Notes, Price at Issuance 99.941, Yielding 6.38%. 3. T-Mobile USA Inc. (USD) 4.5% 4/15/2050 Reg S (04/02/2020): 3000MM Secured Notes, Price at Issuance 99.575, Yielding 4.53%. 4. T-Mobile USA Inc. (USD) 3.75% 4/15/2027 Reg S (04/02/2020): 4000MM Secured Notes, Price at Issuance 99.957, Yielding 3.76%. 5. TransDigm Group Inc. (USD) 8% 12/15/2025 144A (04/02/2020): 1100MM Secured Notes, Price at Issuance 100, Yielding 8%. 6. TransDigm Group Inc. (USD) 8% 12/15/2025 Reg S (04/02/2020): 1100MM Secured Notes, Price at Issuance 100, Yielding 8%. 7. Ontario Power Generation Inc. (CAD) 2.893% 4/8/2025 (04/02/2020): 400MM Senior Unsecured Notes, Price at Issuance 100, Yielding 2.89%. 8. Ontario Power Generation Inc. (CAD) 3.215% 4/8/2030 (04/02/2020): 800MM Senior Unsecured Notes, Price at Issuance 100, Yielding 3.22%. 9. Hyundai Capital America (USD) 5.875% 4/7/2025 144A (04/02/2020): 600MM Senior Unsecured Notes, Price at Issuance 99.919, Yielding 5.89%. 10. Carnival Corp. (USD) 11.5% 4/1/2023 144A (04/02/2020): 4000MM First Lien Notes, Price at Issuance 99, Yielding 11.901%.

NEW ISSUANCE WATCH: on 04/03/2020 participants welcome a $2200MM new corporate-bond offering by TransDigm Group Inc. 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
J Crew Group Inc. (USD) TLB L+322 03/06/2021 Arvos Holding (EUR) TLB2 E+450 08/29/2021 Advantage Sales & Marketing Inc. (USD) TL2 L+650 07/25/2022 Tipico Co. LTD (EUR) TLB E+350 08/08/2022 Quest Software US Holdings Inc (USD) TL L+425 05/17/2025	Booz Allen Hamilton Inc. (USD) TL L+175 11/22/2026 Concordia International (EUR) TL E+525 09/06/2024 Hamilton Holdco LLC (USD) TLB L+200 01/02/2027 Prosol Gestion (EUR) TLB E+400 04/21/2024 ATI Holdings (USD) TLB L+350 05/10/2023

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 130 bp (basis points), as of 04/3/2020
• Net positive capital flows into high-yield ETFs & mutual funds

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