
North American Bond Research – December 4, 2019
Posted on December 4, 2019
HIGH YIELD BOND RESEARCH
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December 4, 2019
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Bond Markets
Key Gainers and Losers | Volume Leaders | ||||||||||||||||||
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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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | Forward Calendar |
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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 |
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) 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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