North American Bond Research – December 4, 2019Posted on December 4, 2019
HIGH YIELD BOND RESEARCH
December 4, 2019
|Key Gainers and Losers||Volume Leaders|
|Pacific Gas & Electric Co. 6.05% 3/1/2034
Ally Financial Inc. 4.25% 4/15/2021
Intelsat Luxembourg SA 8.125% 6/1/2023
|Industry Returns Tracker|
|New Issues||Forward Calendar|
|1. Lithia Motors Inc. (USD) 4.625% 12/15/2027 144A (12/03/2019): 400MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.63%.
2. NCL Corp. LTD (USD) 3.625% 12/15/2024 144A (12/03/2019): 565MM Senior Unsecured Notes, Price at Issuance 100, Yielding 3.63%.
3. CCO Holdings LLC (USD) 4.75% 3/1/2030 (12/03/2019): 1200MM Senior Unsecured Notes, Price at Issuance 101.125, Yielding 4.61%.
|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
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)
Export Credit Bank of Turkey (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 34 bp (basis points), as of 12/03/19
- Net negative capital flows into high-yield ETFs & mutual funds
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