
North American Bond Research – December 1, 2020
Posted on December 1, 2020
HIGH YIELD BOND RESEARCH
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December 1, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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Pacific Gas & Electric Co. 4.55% 7/1/2030 T-Mobile USA Inc. 3.5% 4/15/2025 144A Transocean Sedco Forex Inc. 7.5% 4/15/2031 HCA Inc. 5.25% 4/15/2025 Kraft Heinz Co. 4.375% 6/1/2046 (2) Lennar Corp. 4.75% 11/29/2027 Cheniere Energy Inc. 5.25% 10/1/2025 (1) Service Properties Trust 7.5% 9/15/2025 Firstenergy Corp. 7.375% 11/15/2031 Sprint Nextel Corp. 7.875% 9/15/2023 |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | Forward Calendar |
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1. H&E Equipment Services Inc. (USD) 3.875% 12/15/2028 144A (11/30/2020): 1250MM Senior Unsecured Notes, Price at Issuance 100, Yielding 3.88%.
2. LifePoint Health Inc (USD) 5.375% 1/15/2029 144A (11/30/2020): 500MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5.38%. 3. H&E Equipment Services Inc. (USD) 3.875% 12/15/2028 Reg S (11/30/2020): 1250MM Senior Unsecured Notes, Price at Issuance 100, Yielding 3.88%. 4. LifePoint Health Inc (USD) 5.375% 1/15/2029 Reg S (11/30/2020): 500MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5.38%. |
1. Adtalem: $1.4B credit facilities: $400MM revolver; $1B TLB
2. American Bath Group LLC: $1.2B TL (B2/B) 3. American Public Education Inc.: $195MM credit facilities: $20MM revolver; $175MM TLB 4. Astoria Energy LLC: $800MM TLB (Ba3) 5. Railworks: $280MM credit facilities: $230MM TLB; $50MM revolver 6. Smartbear: $565MM credit facilities: $50MM revolver (B2/B-); $385MM TL (B2/B-); $130MM TL 7. Sinclair: $550MM senior secured notes 8. American Bath: $335MM senior unsecured notes (Caa2/CCC+) 9. Carnival: $1000MM senior unsecured notes (B2/B) 10. Double Eagle: $650MM senior unsecured notes (B3/B) |
Top Widening Loans | Top Narrowing Loans |
GIP III Stetson I (USD) TLB L+425 07/18/2025 TMF Group Hldg B.V. (EUR) TL2 E+687.5 06/08/2026 Allsup’s (USD) TLB L+625 11/18/2024 MFG / MRH (GBP) TL2 06/21/2026 Air Methods Corp. (USD) TL L+350 04/13/2024 |
Quorum Health Corp. (USD) TL EXIT L+825 04/29/2025 Hurtigruten Group AS (EUR) TLC E+800 06/16/2023 Applied Systems Inc. (USD) TLB L+300 09/18/2024 Casper Bidco (EUR) TL E+850 07/30/2027 Alpha AB Bidco (USD) TL 09/10/2026 |
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 16 bps (basis points), as of 12/01/2020
- Net negative capital flows into high-yield ETFs & mutual funds
INVESTMENT GRADE BOND RESEARCH
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December 1, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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Verizon Communications Inc. 2.875% 11/20/2050 Verizon Communications Inc. 3% 11/20/2060 General Electric Co. FLT% PERP (1) Wells Fargo & Co. VAR% 4/4/2031 Anheuser-Busch Inbev Worldwide Inc. 4.5% 6/1/2050 Bristol-Myers Squibb Co. 1.45% 11/13/2030 Boeing Co. 5.805% 5/1/2050 GE Capital Intl. Funding Co. 4.418% 11/15/2035 Bank of America Corp. 4.083% 3/20/2051 Enterprise Products Operating LLC 5.375% 2/15/2078 |
Industry Returns Tracker | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | New Issues [Continued] |
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1. H&R Real Estate Investment Trust (CAD) 2.906% 6/2/2026 (11/30/2020): 250MM Senior Unsecured Notes, Price at Issuance 100, Yielding 2.91%.
2. McKesson Corp. (USD) 0.9% 12/3/2025 (11/30/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.961, Yielding .91%. 3. UDR Inc. (USD) 1.9% 3/15/2033 (11/30/2020): 350MM Senior Unsecured Notes, Price at Issuance 99.578, Yielding 1.94%. 4. Consolidated Edison Inc. (USD) 0.65% 12/1/2023 (11/30/2020): 650MM Senior Unsecured Notes, Price at Issuance 99.982, Yielding .66%. 5. Bank of New York Mellon, The (USD) 0.35% 12/7/2023 (11/30/2020): 750MM Senior Unsecured Notes, Price at Issuance 99.893, Yielding .39%. 6. National Secs Clearing (USD) 0.4% 12/7/2023 144A (11/30/2020): 1000MM Senior Unsecured Notes, Price at Issuance 99.875, Yielding .44%. 7. Banco Santander SA (USD) 2.749% 12/3/2030 (11/30/2020): 1500MM Subordinated Notes, Price at Issuance 100, Yielding 2.75%. 8. National Secs Clearing (USD) 0.75% 12/7/2025 Reg S (11/30/2020): 750MM Senior Unsecured Notes, Price at Issuance 99.677, Yielding .82%. 9. National Secs Clearing (USD) 0.4% 12/7/2023 Reg S (11/30/2020): 1000MM Senior Unsecured Notes, Price at Issuance 99.875, Yielding .44%. 10. Barclays Bank PLC (USD) 0.39% 2/17/2021 (11/30/2020): 89MM Senior Unsecured Notes, Price at Issuance 100, Yielding .39%. |
Top Widening Loans | Top Narrowing Loans |
GIP III Stetson I (USD) TLB L+425 07/18/2025 TMF Group Hldg B.V. (EUR) TL2 E+687.5 06/08/2026 Allsup’s (USD) TLB L+625 11/18/2024 MFG / MRH (GBP) TL2 06/21/2026 Air Methods Corp. (USD) TL L+350 04/13/2024 |
Quorum Health Corp. (USD) TL EXIT L+825 04/29/2025 Hurtigruten Group AS (EUR) TLC E+800 06/16/2023 Applied Systems Inc. (USD) TLB L+300 09/18/2024 Casper Bidco (EUR) TL E+850 07/30/2027 Alpha AB Bidco (USD) TL 09/10/2026 |
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 16 bps (basis points), as of 12/01/2020
- Net positive capital flows into high-yield ETFs & mutual funds
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