
North American Bond Research – December 6, 2019
Posted on December 6, 2019
HIGH YIELD BOND RESEARCH
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December 6, 2019
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Bond Markets
Key Gainers and Losers | Volume Leaders | ||||||||||||||||||
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Select Medical Corp. 6.25% 8/15/2026 144A Expedia Inc. 3.8% 2/15/2028 (1) Intelsat Luxembourg SA 8.125% 6/1/2023 |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | Forward Calendar |
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1. Twitter Inc. (USD) 3.875% 12/15/2027 144A (12/05/2019): 700MM Senior Unsecured Notes, Price at Issuance 100, Yielding 3.88%.
2. Twitter Inc. (USD) 3.875% 12/15/2027 Reg S (12/05/2019): 700MM Senior Unsecured Notes, Price at Issuance 100, Yielding 3.88%. 3. Moog Inc. (USD) 4.25% 12/15/2027 144A (12/06/2019): 0MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.25%. |
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 35 bp (basis points), as of 12/06/19
- Net negative capital flows into high-yield ETFs & mutual funds
INVESTMENT GRADE BOND RESEARCH
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December 6, 2019
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Bond Markets
Key Gainers and Losers | Volume Leaders | ||||||||||||||||||
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CVS Health Corp. 5.05% 3/25/2048 Abbvie Inc. 4.25% 11/21/2049 144A Intesa Sanpaolo SPA 4% 9/23/2029 |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | New Issues [Continued] |
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1. Baptist Health Obligated Group (USD) 4.1% 12/1/2049 (12/05/2019): 74MM Unsecured Notes, Price at Issuance 97.985, Yielding 4.22%.
2. Memorial Health Services (USD) 3.447% 11/1/2049 (12/05/2019): 300MM Senior Unsecured Notes, Price at Issuance 100, Yielding 3.45%. 3. MUFG Union Bank NA (USD) 2.1% 12/9/2022 (12/05/2019): 700MM Senior Unsecured Notes, Price at Issuance 100, Yielding 2.1%. |
Additional Commentary
Nationwide Financial Service. 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) Cable & Wireless Communication (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 35 bp (basis points), as of 12/06/19
- Net positive capital flows into high-yield ETFs & mutual funds
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