
North American Bond Research – January 9, 2020
Posted on January 9, 2020
HIGH YIELD BOND RESEARCH
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January 9, 2020
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Bond Markets
Key Gainers and Losers | Volume Leaders | ||||||||||||||||||
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Transocean Inc. 8% 2/1/2027 144A Altice Financing SA 5% 1/15/2028 144A GrubHub Inc. 5.5% 7/1/2027 144A |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | Forward Calendar |
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1. WPX Energy Inc. (USD) 4.5% 1/15/2030 (01/08/2020): 900MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.5%.
2. Nabors Industries LTD (USD) 7.25% 1/15/2026 144A (01/08/2020): 600MM Senior Unsecured Notes, Price at Issuance 100, Yielding 7.25%. 3. Nabors Industries LTD (USD) 7.5% 1/15/2028 144A (01/08/2020): 400MM Senior Unsecured Notes, Price at Issuance 100, Yielding 7.5%. |
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 31 bp (basis points), as of 01/09/2020
- Net negative capital flows into high-yield ETFs & mutual funds
INVESTMENT GRADE BOND RESEARCH
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January 9, 2020
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Bond Markets
Key Gainers and Losers | Volume Leaders | ||||||||||||||||||
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CVS Health Corp. 5.05% 3/25/2048 Energy Transfer Partners LP 6.25% 4/15/2049 Viacom Inc. 4.375% 3/15/2043 |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | New Issues [Continued] |
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1. Energy Transfer Operating, LP (USD) 2.9% 5/15/2025 (01/08/2020): 1000MM Senior Unsecured Notes, Price at Issuance 99.924, Yielding 2.91%.
2. Hess Midstream Operations LP (USD) 5.625% 2/15/2026 Reg S (01/08/2020): 794MM Senior Unsecured Notes. 3. Barclays Bank PLC (USD) 1.769% 4/9/2020 (01/08/2020): 115MM Senior Unsecured Notes, Price at Issuance 100, Yielding 1.77%. |
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) 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 31 bp (basis points), as of 01/09/2020
- Net positive capital flows into high-yield ETFs & mutual funds
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