GLOBAL MARKETS WERE MIXED TO HIGHER AS THE SENATE PASSED THE $900 BILLION STIMULUS PACKAGE. THE VIRUS IS STILL RAGING AS VACCINES ARE BEING DISTRIBUTED AND THEY ARE TESTING IF IT CAN STOP THE NEW UK STRAIN. 10 Year Treasury notes were DOWN 2.1 bps. S&P -0.21%, Dow -0.67%, NASDAQ +0.51%.
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Market Summaries
North American Bond Research – December 22, 2020
Posted on December 22, 2020|
HIGH YIELD BOND RESEARCH
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December 22, 2020
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Bond Markets
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 78.3 MILLION+ CASES AND 1.72 MILLION DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 18.63 MILLION+ CASES AND 330000+ 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 4.7% 4/15/2025 Expedia Inc. 4.5% 8/15/2024 Vale Overseas LTD 6.25% 8/10/2026 Broadcom LTD 4.75% 4/15/2029 American Axle & Manufacturing Inc. 6.875% 7/1/2028 OneMain Financial Hldg Inc. 4% 9/15/2030 Dish DBS Corp. 7.75% 7/1/2026 Teva Pharmaceutical Industries LTD 3.15% 10/1/2026 Constellation Brands Inc. 4.25% 5/1/2023 Ally Financial Inc. 3.875% 5/21/2024 |
| Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| New Issues | Forward Calendar |
|---|---|
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(None Current 12/22/2020)
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1. Unified Women’s Healthcare LP: $560MM TLs: $420MM TLB (B-); $140MM TL
2. Syncapay: $500MM credut facilities (B2/B): $50MM revolver; $450MM TLB 3. Gemini HDPE LLC: $600MM TLB (Ba3/BB) 4. American Public Education Inc.: $195MM credit facilities: $20MM revolver; $175MM TLB 5. Adtalem: $1.4B credit facilities: $400MM revolver; $1B TLB 6. American Public Education Inc.: $195MM credit facilities: $20MM revolver; $175MM TLB 7. Asurion LLC: $2.087B TLB8 8. Cloudera Inc.: $500MM TLB (Ba3/BB-) 9. Gemini HDPE LLC: $600MM TLB (Ba3/BB) 10. Adtalem: $1.4B credit facilities: $400MM revolver; $1B TLB |
Additional Commentary
NEW ISSUANCE WATCH: No New Issues.
| Top Widening Loans | Top Narrowing Loans |
| Auris Luxembourg III SA (EUR) TL E+675 02/21/2027 Garrett Motion (USD) TLB L+250 09/27/2025 Natel Engineering Co. Inc. (USD) TLB L+500 04/30/2026 Caldic (EUR) TL 07/18/2025 Optiv Security Inc. (USD) TL2 L+725 02/01/2025 |
Ligado Networks LLC (USD) TL L+1600 05/27/2023 Hexion Inc. (EUR) TLB EXT E+400 07/01/2026 Securus Technologies Inc. (USD) TL L+450 11/01/2024 Tecomet Inc. (USD) TL L+350 05/01/2024 Encino (USD) TL2 L+675 11/20/2025 |
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 bps (basis points), as of 12/22/2020
- Net negative capital flows into high-yield ETFs & mutual funds
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INVESTMENT GRADE BOND RESEARCH
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December 22, 2020
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Bond Markets
GLOBAL MARKETS WERE MIXED TO HIGHER AS THE SENATE PASSED THE $900 BILLION STIMULUS PACKAGE. THE VIRUS IS STILL RAGING AS VACCINES ARE BEING DISTRIBUTED AND THEY ARE TESTING IF IT CAN STOP THE NEW UK STRAIN. 10 Year Treasury notes were DOWN 2.1 bps. S&P -0.21%, Dow -0.67%, NASDAQ +0.51%.
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 78.3 MILLION+ CASES AND 1.72 MILLION DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 18.63 MILLION+ CASES AND 330000+ 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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Verizon Communications Inc. 2.875% 11/20/2050 Verizon Communications Inc. 1.75% 1/20/2031 Verizon Communications Inc. 3% 11/20/2060 Simon Property Group Inc. 3.375% 6/15/2027 Boeing Co. 3.625% 2/1/2031 Boeing Co. 5.805% 5/1/2050 AT&T Inc. 2.75% 6/1/2031 CI Financial Corp. 3.2% 12/17/2030 B.A.T. Capital Corp. 2.259% 3/25/2028 FS KKR Capital Corp. 3.4% 1/15/2026 |
| Industry Returns Tracker | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| New Issues | New Issues [Continued] |
|---|---|
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(None Current 12/22/2020)
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Additional Commentary
NEW ISSUANCE WATCH: No New Issues.
| Top Widening Loans | Top Narrowing Loans |
| Auris Luxembourg III SA (EUR) TL E+675 02/21/2027 Garrett Motion (USD) TLB L+250 09/27/2025 Natel Engineering Co. Inc. (USD) TLB L+500 04/30/2026 Caldic (EUR) TL 07/18/2025 Optiv Security Inc. (USD) TL2 L+725 02/01/2025 |
Ligado Networks LLC (USD) TL L+1600 05/27/2023 Hexion Inc. (EUR) TLB EXT E+400 07/01/2026 Securus Technologies Inc. (USD) TL L+450 11/01/2024 Tecomet Inc. (USD) TL L+350 05/01/2024 Encino (USD) TL2 L+675 11/20/2025 |
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 bps (basis points), as of 12/22/2020
- Net positive capital flows into high-yield ETFs & mutual funds
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