MARKETS POPPED UP EARLY ON THE NEWS OF RUSSIA FAST TRACKING A COVID VACCINE BY YEARS END. BIDEN CHOSE KAMALA HARRIS AS HIS RUNNING MATE. 10 Year Treasury notes were up 8.4 bps. S&P -0.8%, Dow -0.38%, NASDAQ -1.69%.
All Posts
Market Summaries
North American Bond Research – August 11, 2020
Posted on August 11, 2020|
HIGH YIELD BOND RESEARCH
|
August 11, 2020
|
Bond Markets
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 20.5 MILLION+ CASES AND 744000+ DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 5.3 MILLION+ CASES AND 168000+ DEATHS. Among high-grade bonds showing topmost price gains at appreciable volumes traded, Hertz Corp (The) (USD) 7% 1/15/2028 made analysts’ ‘Conviction Buy’ list. (See the chart below for Hertz Corp bonds) Pierre Robert
| Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
T-Mobile USA Inc. 3.875% 4/15/2030 144A Service Corp. Intl. 3.375% 8/15/2030 Pacific Gas & Electric Co. 4.95% 7/1/2050 Pacific Gas & Electric Co. 4% 12/1/2046 United Rentals North AM 3.875% 2/15/2031 MGIC Investment Corp. 5.25% 8/15/2028 Pacific Gas & Electric Co. 3.5% 6/15/2025 Pacific Gas & Electric Co. 4.55% 7/1/2030 Equinix Inc. 5.375% 5/15/2027 T-Mobile USA Inc. 3.75% 4/15/2027 144A |
| Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Issues | Forward Calendar |
|---|---|
| 1. Iron Mountain Inc. (USD) 4.5% 2/15/2031 Reg S (08/10/2020): 1100MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.5%.
2. Ball Corp. (USD) 2.875% 8/15/2030 (08/10/2020): 1300MM Senior Unsecured Notes, Price at Issuance 100, Yielding 2.88%. 3. Wyndham Hotels & Resorts Inc. (USD) 4.375% 8/15/2028 Reg S (08/10/2020): 100MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.38%. 4. Wyndham Hotels & Resorts Inc. (USD) 4.375% 8/15/2028 144A (08/10/2020): 500MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.38%. 5. CDW LLC CDW Finance Corp. (USD) 3.25% 2/15/2029 (08/10/2020): 700MM Senior Unsecured Notes, Price at Issuance 100, Yielding 3.25%. 6. Cascades Inc. (USD) 5.375% 1/15/2028 (08/10/2020): 300MM Senior Unsecured Notes, Price at Issuance 104.25, Yielding 4.69%. 7. Iron Mountain Inc. (USD) 4.5% 2/15/2031 144A (08/10/2020): 1100MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.5%. 8. AMN Healthcare Inc. (USD) 4.625% 10/1/2027 (08/10/2020): 200MM Senior Unsecured Notes, Price at Issuance 101, Yielding 4.46%. 9. Covanta Holding Corp. (USD) 5% 9/1/2030 (08/11/2020): 400MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5%. 10. Windstream Escrow LLC Windstream Escrow Finance Corp. (USD) 7.75% 8/15/2028 144A (08/11/2020): 1400MM First Lien Notes, Price at Issuance 100, Yielding 7.75%. |
1. CJ Foods Inc.: $285MM TLB
2. Herschend Entertainment Co. LLC: $465MM TLB (B3/B) 3. Logmein Inc.: $2.45B credit facilities: $1.95B first lien TL; $500MM second-lien TL 4. MAG Aerospace: $290.7MM TL (B3/B) 5. RSA: $1.425B credit facilities: $75MM revolver; $1B TL; $350MM TL 6. Smart Start Inc.: $350MM TLB 7. Tutor Perini: $375MM TLB (Ba3/BB-/BB+) 8. Windstream Holdings Inc.: $750MM TLB (B3/B) 9. CJ Foods Inc.: $285MM TLB 10. Logmein Inc.: $2.45B credit facilities: $1.95B first lien TL; $500MM second-lien TL |
Additional Commentary
NEW ISSUANCE WATCH: Ball Corp issued 1300 MM in notes.
| Top Widening Loans | Top Narrowing Loans |
| CPA Global (EUR) TLB E+325 11/30/2024 TMF Group Hldg B.V. (EUR) TL2 E+687.5 06/08/2026 Ahlsell AB (EUR) TL E+825 03/01/2027 Specialty Chemical Resources Inc. (EUR) TLB1 E+450 03/05/2027 Keter Group BV (EUR) TLB E+425 10/01/2023 |
DigiCert Inc. (USD) TL2 10/16/2027 Parques Reunidos (EUR) TLB E+375 09/27/2026 Philadelphia Energy Solutions (USD) TL L+800 02/11/2022 Carrols Restaurant Group (USD) TLB1 L+625 04/30/2026 Kiwi Holding IV Sarl (EUR) TLB E+325 07/27/2024 |
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 17 bp (basis points), as of 08/11/2020
- Net negative capital flows into high-yield ETFs & mutual funds
|
INVESTMENT GRADE BOND RESEARCH
|
August 11, 2020
|
Bond Markets
MARKETS POPPED UP EARLY ON THE NEWS OF RUSSIA FAST TRACKING A COVID VACCINE BY YEARS END. BIDEN CHOSE KAMALA HARRIS AS HIS RUNNING MATE. 10 Year Treasury notes were up 8.4 bps. S&P -0.8%, Dow -0.38%, NASDAQ -1.69%.
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 20.5 MILLION+ CASES AND 744000+ DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 5.3 MILLION+ CASES AND 168000+ DEATHS. Among high-grade bonds showing topmost price gains at appreciable volumes traded, Halliburton Co. (USD) 5% 11/15/2045 made analysts’ ‘Conviction Buy’ list. (See the chart below for Halliburton Co. bonds) Pierre Robert
| Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
JPMorgan Chase & Co. 2.522% 4/22/2031 Boeing Co. 5.805% 5/1/2050 Oracle Corp. 3.85% 4/1/2060 Regeneron Pharmaceuticals Inc. 2.8% 9/15/2050 BP Capital Markets America Inc. 2.772% 11/10/2050 American Express Co. 2.5% 8/1/2022 JPMorgan Chase & Co. FLT% 10/24/2023 Regeneron Pharmaceuticals Inc. 1.75% 9/15/2030 Block Financial LLC 3.875% 8/15/2030 Southwest Airlines Co. 5.25% 5/4/2025 |
| Industry Returns Tracker | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Issues | New Issues [Continued] |
|---|---|
| 1. Air Lease Corp. (USD) 2.875% 1/15/2026 (08/10/2020): 700MM Senior Unsecured Notes, Price at Issuance 98.972, Yielding 3.08%.
2. Chevron USA Inc. (USD) FLT% 8/11/2023 (08/10/2020): 500MM Senior Unsecured Notes, Price at Issuance 100. 3. Chevron USA Inc. (USD) FLT% 8/12/2022 (08/10/2020): 350MM Senior Unsecured Notes, Price at Issuance 100. 4. Bunge LTD Finance Corp. (USD) 1.63% 8/17/2025 (08/10/2020): 600MM Senior Unsecured Notes, Price at Issuance 99.995, Yielding 1.63%. 5. Kimco Realty Corp. (USD) 1.9% 3/1/2028 (08/10/2020): 400MM Senior Unsecured Notes, Price at Issuance 99.554, Yielding 1.96%. 6. Great-West Lifeco Inc. (USD) 0.904% 8/12/2025 144A (08/10/2020): 500MM Senior Unsecured Notes, Price at Issuance 100, Yielding .9%. 7. Visa Inc. (USD) 2% 8/15/2050 (08/10/2020): 1750MM Senior Unsecured Notes, Price at Issuance 98.928, Yielding 2.05%. 8. Ecolab Inc. (USD) 1.3% 1/30/2031 (08/10/2020): 600MM Senior Unsecured Notes, Price at Issuance 99.942, Yielding 1.31%. 9. Ecolab Inc. (USD) 2.125% 8/15/2050 (08/10/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.121, Yielding 2.16%. 10. Chevron USA Inc. (USD) 1.018% 8/12/2027 (08/10/2020): 750MM Senior Unsecured Notes, Price at Issuance 100, Yielding 1.02%. |
Additional Commentary
NEW ISSUANCE WATCH: Ecolab Inc issued 1100 MM in notes.
| Top Widening Loans | Top Narrowing Loans |
| CPA Global (EUR) TLB E+325 11/30/2024 TMF Group Hldg B.V. (EUR) TL2 E+687.5 06/08/2026 Ahlsell AB (EUR) TL E+825 03/01/2027 Specialty Chemical Resources Inc. (EUR) TLB1 E+450 03/05/2027 Keter Group BV (EUR) TLB E+425 10/01/2023 |
DigiCert Inc. (USD) TL2 10/16/2027 Parques Reunidos (EUR) TLB E+375 09/27/2026 Philadelphia Energy Solutions (USD) TL L+800 02/11/2022 Carrols Restaurant Group (USD) TLB1 L+625 04/30/2026 Kiwi Holding IV Sarl (EUR) TLB E+325 07/27/2024 |
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 17 bp (basis points), as of 08/11/2020
- 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.
Disclaimer: The information on this blog site is for informational purposes only. Advantage Data makes no representations as to the accuracy, completeness, suitability, or validity, of any information. Advantage Data will not be liable for any errors, omissions, or any losses, injuries, or damages arising from its display or use. All information is provided AS-IS with no warranties and confers no rights. Information is not and should not be considered professional financial investment advice. In all events, Advantage Data is not a broker-dealer, shall not operate as a broker or a dealer, is not holding itself out as a broker or dealer and is not engaged in the business of buying or selling securities or otherwise required to register with the National Association of Securities Dealers.
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
