EUROPEAN MARKETS WERE UP AS COVID FIGURES GETTING MUCH BETTER. POST-BREXIT DEAL MAKING PROGRESS AND GETTING AN EXTENSION. US MARKETS DOWN AS NO PROGRESS ON STIMULUS IS MADE. 10 Year Treasury notes were UP 2.8 bps. S&P -0.62%, Dow -0.44%, NASDAQ +0.50%.
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Market Summaries
North American Bond Research – December 14, 2020
Posted on December 14, 2020|
HIGH YIELD BOND RESEARCH
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December 14, 2020
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Bond Markets
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 73.1 MILLION+ CASES AND 1.63 MILLION DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 16.88 MILLION+ CASES AND 308000+ 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 | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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Broadcom LTD 4.3% 11/15/2032 Occidental Petroleum Corp. 6.125% 1/1/2031 Genesis Energy LP 8% 1/15/2027 Rohm & Haas Co. 7.85% 7/15/2029 Ford Motor Co. 8.5% 4/21/2023 SM Energy Co. 5% 1/15/2024 Pacific Gas & Electric Co. 4.95% 7/1/2050 Community Health Systems Inc. 6.25% 3/31/2023 Citigroup Inc. VAR% PERP (4) Vale Overseas LTD 3.75% 7/8/2030 |
| Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| New Issues | Forward Calendar |
|---|---|
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(None Current 12/14/2020)
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1. Energizer Holdings Inc.: $1.2B TLB (BB+)
2. Planview: $890MM TLs: $535MM TL (B2/B-); $125MM DD; $230MM TL (Caa2/CCC+) 3. Pointclickcare: $450MM TLB (B1/B+) 4. Provation Software Group Inc.: $330MM TLs: $250MM TL; $80MM TL2 5. Centerfield: $500MM TL (B2/B): $400MM TLB; $100MM DD 6. Adtalem: $1.4B credit facilities: $400MM revolver; $1B TLB 7. American Public Education Inc.: $195MM credit facilities: $20MM revolver; $175MM TLB 8. Asurion LLC: $2.087B TLB8 9. Unified Women’s Healthcare LP: $560MM TLs: $420MM TLB (B-); $140MM TL 10. Community Health: $1050MM senior secured notes (Caa2/B-) |
Additional Commentary
NEW ISSUANCE WATCH: No New Issues.
| Top Widening Loans | Top Narrowing Loans |
| Learning Care Group Inc. (USD) TL L+750 03/13/2026 Samsonite IP Holdings SARL (USD) TLA L+150 04/19/2023 Allsup’s (USD) TLB L+625 11/18/2024 Buzz Merger Sub LTD (USD) TLB L+275 01/29/2027 Fortress Merger Sub Inc. (USD) TL L+400 10/21/2023 |
Flynn Restaurant Group LP (USD) TL2 L+700 06/29/2026 ADB Safegate (EUR) TLB E+350 10/02/2024 EG Group (EUR) TL E+775 03/23/2026 Team Health Inc. (USD) TLB L+275 02/06/2024 Radio One (USD) TLB L+400 04/18/2023 |
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 15 bps (basis points), as of 12/14/2020
- Net negative capital flows into high-yield ETFs & mutual funds
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INVESTMENT GRADE BOND RESEARCH
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December 14, 2020
|
Bond Markets
EUROPEAN MARKETS WERE UP AS COVID FIGURES GETTING MUCH BETTER. POST-BREXIT DEAL MAKING PROGRESS AND GETTING AN EXTENSION. US MARKETS DOWN AS NO PROGRESS ON STIMULUS IS MADE. 10 Year Treasury notes were UP 2.8 bps. S&P -0.62%, Dow -0.44%, NASDAQ +0.50%.
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 73.1 MILLION+ CASES AND 1.63 MILLION DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 16.88 MILLION+ CASES AND 308000+ 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 | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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Charles Schwab Corp. VAR% PERP (1) GE Capital Intl. Funding Co. 4.418% 11/15/2035 Broadcom LTD 4.15% 11/15/2030 Broadcom LTD 4.3% 11/15/2032 CBOE Hldgs Inc. 1.625% 12/15/2030 Nasdaq Inc. 2.5% 12/21/2040 Goldman Sachs Group Inc. VAR% 12/9/2026 Microsoft Corp. 2.675% 6/1/2060 Verizon Communications Inc. 2.875% 11/20/2050 HSBC Hldg PLC VAR% PERP (1) |
| Industry Returns Tracker | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| New Issues | New Issues [Continued] |
|---|---|
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(None Current 12/14/2020)
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Additional Commentary
NEW ISSUANCE WATCH: No new issues.
| Top Widening Loans | Top Narrowing Loans |
| Learning Care Group Inc. (USD) TL L+750 03/13/2026 Samsonite IP Holdings SARL (USD) TLA L+150 04/19/2023 Allsup’s (USD) TLB L+625 11/18/2024 Buzz Merger Sub LTD (USD) TLB L+275 01/29/2027 Fortress Merger Sub Inc. (USD) TL L+400 10/21/2023 |
Flynn Restaurant Group LP (USD) TL2 L+700 06/29/2026 ADB Safegate (EUR) TLB E+350 10/02/2024 EG Group (EUR) TL E+775 03/23/2026 Team Health Inc. (USD) TLB L+275 02/06/2024 Radio One (USD) TLB L+400 04/18/2023 |
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 15 bps (basis points), as of 12/14/2020
- Net positive capital flows into high-yield ETFs & mutual funds
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