
North American Bond Research – December 10, 2019
Posted on December 10, 2019
HIGH YIELD BOND RESEARCH
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December 10, 2019
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Bond Markets
Key Gainers and Losers | Volume Leaders | ||||||||||||||||||
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GFL Environmental Inc. 5.125% 12/15/2026 144A CenturyLink Inc. 5.125% 12/15/2026 144A Amsted Industries Inc. 4.625% 5/15/2030 144A |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | Forward Calendar |
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1. Amsted Industries Inc. (USD) 4.625% 5/15/2030 144A (12/09/2019): 400MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.63%.
2. CenturyLink Inc. (USD) 5.125% 12/15/2026 144A (12/09/2019): 1250MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5.13%. 3. EnerSys (USD) 4.375% 12/15/2027 144A (12/09/2019): 300MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.38%. |
1. Qmax Financial Holdings Inc.: $225MM, Expected 4th Quarter 2019
2. Calpine Corp.: $1.4B bonds, Expected Q4 2019 3. Diamondback Energy Inc.: High-yield notes, Expected Q4 2019 |
Additional Commentary
Wolverine Ecrow The most recent data showed a money flowed out of ETF/mutual funds for the week ended 11/15/2019, with a net outflow of $240 Million.
Top Widening Credit Default Swaps (CDS) | Top Narrowing Credit Default Swaps (CDS) |
Rite Aid Corp. (5Y Sen USD MR14) Weatherford International LTD (5Y Sen USD MR14) Hertz Corp. (5Y Sen USD CR14) |
Ghana, Republic of (5Y Sen USD CR14) Road King Infrastructure LTD (5Y Sen USD CR14) Cable & Wireless Communication (5Y Sen USD CR14) |
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 36 bp (basis points), as of 12/09/19
- Net negative capital flows into high-yield ETFs & mutual funds
INVESTMENT GRADE BOND RESEARCH
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December 10, 2019
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Bond Markets
Key Gainers and Losers | Volume Leaders | ||||||||||||||||||
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IBM Corp. 3.5% 5/15/2029 Abbvie Inc. 4.25% 11/21/2049 144A Toledo Hospital 6.015% 11/15/2048 |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | New Issues [Continued] |
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1. Welltower Inc. (USD) 2.7% 2/15/2027 (12/09/2019): 500MM Senior Unsecured Notes, Price at Issuance 99.893, Yielding 2.72%.
2. Quest Diagnostics Inc. (USD) 2.95% 6/30/2030 (12/09/2019): 800MM Senior Unsecured Notes, Price at Issuance 99.738, Yielding 2.98%. 3. Steel Dynamics (USD) 2.8% 12/15/2024 (12/09/2019): 400MM Senior Unsecured Notes, Price at Issuance 99.925, Yielding 2.82%. |
Additional Commentary
Nationwide Financial Service. The most recent data showed a money flowed out of ETF/mutual funds for the week ended 11/15/2019, with a net outflow of $240 Million.
Top Widening Credit Default Swaps (CDS) | Top Narrowing Credit Default Swaps (CDS) |
Rite Aid Corp. (5Y Sen USD MR14) Weatherford International LTD (5Y Sen USD MR14) Hertz Corp. (5Y Sen USD CR14) |
Ghana, Republic of (5Y Sen USD CR14) Road King Infrastructure LTD (5Y Sen USD CR14) Cable & Wireless Communication (5Y Sen USD CR14) |
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 36 bp (basis points), as of 12/10/19
- Net positive capital flows into high-yield ETFs & mutual funds
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