GLOBAL MARKETS ARE DOWN AS COVID CASES RISE. ALSO PUTTING PRESSURE ON THE MARKETS IS THE STATUS OF WHETHER THERE WILL BE A STIMULUS PACKAGE AND HOW BIG WILL IT BE? GLOBAL SOVEREIGNS ALSO WERE UNIVERSALLY DOWN. 10 Year Treasury notes were DOWN 4.1bps. S&P -0.19%, Dow -0.49%, NASDAQ +0.45%.
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Market Summaries
North American Bond Research – December 7, 2020
Posted on December 7, 2020|
HIGH YIELD BOND RESEARCH
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December 7, 2020
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Bond Markets
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 67.86 MILLION+ CASES AND 1.55 MILLION DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 15.3 MILLION+ CASES AND 290000+ 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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T-Mobile USA Inc. 3.5% 4/15/2025 144A HCA Inc. 3.5% 9/1/2030 Ford Motor Co. 8.5% 4/21/2023 EQT Corp. 3.9% 10/1/2027 Petrobras Global Finance BV 6.85% 6/5/2115 Delta Airlines Inc. 3.625% 3/15/2022 General Motors Co. 5.2% 4/1/2045 Hertz Corp. 6.25% 10/15/2022 EnLink Midstream Partners LP 5.375% 6/1/2029 Pacific Gas & Electric Co. 4.95% 7/1/2050 |
| Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| New Issues | Forward Calendar |
|---|---|
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(None Current 12/07/2020)
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1. Adtalem: $1.4B credit facilities: $400MM revolver; $1B TLB
2. Unified Women’s Healthcare LP: $560MM TLs: $420MM TLB (B-); $140MM TL 3. Railworks: $280MM credit facilities: $230MM TLB; $50MM revolver 4. Provation Software Group Inc.: $330MM TLs: $250MM TL; $80MM TL2 5. Exgen Renewables IV LLC: $750MM TLB (Ba3/BB-) 6. American Public Education Inc.: $195MM credit facilities: $20MM revolver; $175MM TLB 7. Zaxby’s Operating Co LP: $975MM credit facilities: $100MM revolver; $625MM TLB; $250MM TL 8. Zaxby’s Operating Co LP: $975MM credit facilities: $100MM revolver; $625MM TLB; $250MM TL 9. Service King Collision Repair Centers: $700MM TLB 10. Railworks: $280MM credit facilities: $230MM TLB; $50MM revolver |
Additional Commentary
NEW ISSUANCE WATCH: No new Issues.
| Top Widening Loans | Top Narrowing Loans |
| Areas SA (EUR) TL 07/01/2026 Stubhub (USD) TLB L+350 02/13/2027 Aptean Inc. (USD) TL L+850 04/24/2027 Shutterfly Inc. (USD) TLB L+650 10/02/2026 Spectrum Plastics (USD) TL L+700 01/31/2026 |
MedPlast Inc. (USD) TL2 L+775 07/02/2026 Quorum Health Corp. (USD) TL EXIT L+825 04/29/2025 Dental Corp. (USD) TL2 L+750 06/06/2026 Pfleiderer AG (EUR) TLB E+500 04/13/2024 Casper Bidco (EUR) TL E+850 07/30/2027 |
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 15 bps (basis points), as of 12/07/2020
- Net negative capital flows into high-yield ETFs & mutual funds
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INVESTMENT GRADE BOND RESEARCH
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December 7, 2020
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Bond Markets
GLOBAL MARKETS ARE DOWN AS COVID CASES RISE. ALSO PUTTING PRESSURE ON THE MARKETS IS THE STATUS OF WHETHER THERE WILL BE A STIMULUS PACKAGE AND HOW BIG WILL IT BE? GLOBAL SOVEREIGNS ALSO WERE UNIVERSIALLY DOWN. 10 Year Treasury notes were DOWN 4.1bps. S&P -0.19%, Dow -0.49%, NASDAQ +0.45%.
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 66.1 MILLION+ CASES AND 1.52 MILLION DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 14.7 MILLION+ CASES AND 285000+ 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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CVS Health Corp. 4.3% 3/25/2028 ANZ Banking Group LTD 2.05% 11/21/2022 UnitedHealth Group Inc. 3.7% 8/15/2049 Verizon Communications Inc. 2.875% 11/20/2050 CVS Health Corp. 1.3% 8/21/2027 UnitedHealth Group Inc. 2.9% 5/15/2050 Banco Santander SA 2.749% 12/3/2030 Exxon Mobil Corp. 3.452% 4/15/2051 Verizon Communications Inc. 2.65% 11/20/2040 Verizon Communications Inc. 1.75% 1/20/2031 |
| Industry Returns Tracker | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| New Issues | New Issues [Continued] |
|---|---|
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(None Current 12/07/2020)
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Additional Commentary
NEW ISSUANCE WATCH: No New Issues.
| Top Widening Loans | Top Narrowing Loans |
| Areas SA (EUR) TL 07/01/2026 Stubhub (USD) TLB L+350 02/13/2027 Aptean Inc. (USD) TL L+850 04/24/2027 Shutterfly Inc. (USD) TLB L+650 10/02/2026 Spectrum Plastics (USD) TL L+700 01/31/2026 |
MedPlast Inc. (USD) TL2 L+775 07/02/2026 Quorum Health Corp. (USD) TL EXIT L+825 04/29/2025 Dental Corp. (USD) TL2 L+750 06/06/2026 Pfleiderer AG (EUR) TLB E+500 04/13/2024 Casper Bidco (EUR) TL E+850 07/30/2027 |
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 15 bps (basis points), as of 12/07/2020
- Net positive capital flows into high-yield ETFs & mutual funds
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