GLOBAL MARKETS WERE DOWN MOSTLY AS MCCONNELL STOPS THE $2,000 CHECK FROM MOVING FORWARD WHILE PUSHING FORWARD THE $600 CHECK. 10 Year Treasury notes were DOWN 0.9 bps. S&P +0.13%, Dow +0.24%, NASDAQ +.15%.
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Market Summaries
North American Bond Research – December 30, 2020
Posted on December 30, 2020|
HIGH YIELD BOND RESEARCH
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December 30, 2020
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Bond Markets
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 83 MILLION+ CASES AND 1.81 MILLION DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 20.2 MILLION+ CASES AND 350000+ 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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Cheniere Corpus Christi Hldgs LLC 5.125% 6/30/2027 Netflix Inc. 5.875% 11/15/2028 BED Bath & Beyond Inc. 5.165% 8/1/2044 Goldman Sachs Group Inc. 5% PERP Occidental Petroleum Corp. 6.125% 1/1/2031 Macy’s Retail Hldg Inc. 3.625% 6/1/2024 Occidental Petroleum Corp. 5.5% 12/1/2025 Dish DBS Corp. 5.875% 11/15/2024 Micron Technology Inc. 4.663% 2/15/2030 Macys Retail Hldg Inc. 7% 2/15/2028 |
| Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| New Issues | Forward Calendar |
|---|---|
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(None Current 12/30/2020)
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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 |
| Penn Virginia Corp. (USD) TL2 L+700 09/29/2022 Rodan & Fields LLC (USD) TLB L+400 06/07/2025 Casmar Holdings Australia PTY LTD (USD) TLB L+450 12/07/2023 Archroma Global Services (EUR) TLB1 E+400 07/28/2024 Arbor Pharmaceuticals LLC (USD) TLB L+500 07/05/2023 |
Sunrise Medical Inc. (EUR) TLB E+350 04/10/2025 Quorum Health Corp. (USD) TL EXIT L+825 04/29/2025 Fortress Merger Sub Inc. (USD) TL L+400 10/21/2023 Wittur (EUR) TL E+850 09/19/2027 Fortress Merger Sub Inc. (USD) TL2 L+850 10/21/2024 |
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 bps (basis points), as of 12/30/2020
- Net negative capital flows into high-yield ETFs & mutual funds
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INVESTMENT GRADE BOND RESEARCH
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December 30, 2020
|
Bond Markets
GLOBAL MARKETS WERE DOWN MOSTLY AS MCCONNELL STOPS THE $2,000 CHECK FROM MOVING FORWARD WHILE PUSHING FORWARD THE $600 CHECK. 10 Year Treasury notes were DOWN 0.9 bps. S&P +0.13%, Dow +0.24%, NASDAQ +.15%.
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 83 MILLION+ CASES AND 1.81 MILLION DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 20.2 MILLION+ CASES AND 350000+ 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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The Travelers Companies Inc. 4.6% 8/1/2043 Citigroup Inc. 2.9% 12/8/2021 CVS Health Corp. 4.3% 3/25/2028 Pioneer Natural Resources Co. 1.9% 8/15/2030 Dupont de Nemours Inc. 2.169% 5/1/2023 Goldman Sachs Group Inc. VAR% 12/9/2026 Hewlett-Packard Co. 6.35% 10/15/2045 Gilead Sciences Inc. 4.4% 12/1/2021 Pfizer Inc. 2.2% 12/15/2021 Bank of America Corp. VAR% 10/24/2031 |
| Industry Returns Tracker | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| New Issues | New Issues [Continued] |
|---|---|
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(None Current 12/30/2020)
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Additional Commentary
NEW ISSUANCE WATCH: No New Issues.
| Top Widening Loans | Top Narrowing Loans |
| Penn Virginia Corp. (USD) TL2 L+700 09/29/2022 Rodan & Fields LLC (USD) TLB L+400 06/07/2025 Casmar Holdings Australia PTY LTD (USD) TLB L+450 12/07/2023 Archroma Global Services (EUR) TLB1 E+400 07/28/2024 Arbor Pharmaceuticals LLC (USD) TLB L+500 07/05/2023 |
Sunrise Medical Inc. (EUR) TLB E+350 04/10/2025 Quorum Health Corp. (USD) TL EXIT L+825 04/29/2025 Fortress Merger Sub Inc. (USD) TL L+400 10/21/2023 Wittur (EUR) TL E+850 09/19/2027 Fortress Merger Sub Inc. (USD) TL2 L+850 10/21/2024 |
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 bps (basis points), as of 12/30/2020
- Net positive capital flows into high-yield ETFs & mutual funds
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