FED HELD RATES NEAR ZERO CAUSING MARKETS TO MOSTLY FALL. FED PROJECTED GDP CONTRACTION IN THE RANGE OF 4-10% NASDAQ AND TECHNOLOGY STOCKS DID HAVE AN UPDAY AGAIN. FTSE 100 -0.1%, 10 Year Treasury notes were down 8.1 basis points. S&P -.53%, Dow -1.04%, NASDAQ +0.67%.
All Posts
Market Summaries
North American Bond Research – June 10, 2020
Posted on June 10, 2020|
HIGH YIELD BOND RESEARCH
|
June 10, 2020
|
Bond Markets
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 7.4 MILLION+ CASES AND 416000+ DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 2.1 MILLION+ CASES AND 115000+ 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 | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
T-Mobile USA Inc. 3.875% 4/15/2030 144A Hertz Corp. 6.25% 10/15/2022 T-Mobile USA Inc. 3.75% 4/15/2027 144A Hertz Corp. 5.5% 10/15/2024 Reg S Ford Motor Co. 9% 4/22/2025 T-Mobile USA Inc. 3.5% 4/15/2025 144A Micron Technology Inc. 5.327% 2/6/2029 Enbridge Inc. VAR% 3/1/2089 United Rentals North AM 4% 7/15/2030 Sprint Capital Corp. 6.875% 11/15/2028 |
| Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Issues | Forward Calendar |
|---|---|
| 1. American Axle & Manufacturing Inc. (USD) 6.875% 7/1/2028 (06/09/2020): 400MM Senior Unsecured Notes, Price at Issuance 100, Yielding 6.88%.
2. BWX Technologies Inc. (USD) 4.125% 6/30/2028 Reg S (06/09/2020): 400MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.13%. 3. BWX Technologies Inc. (USD) 4.125% 6/30/2028 144A (06/09/2020): 400MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.13%. 4. HTA Group Ltd (USD) 7% 12/18/2025 144A (06/09/2020): 750MM Senior Unsecured Notes, Price at Issuance 99.439, Yielding 7.12%. 5. Realogy Group LLC (USD) 7.625% 6/15/2025 Reg S (06/09/2020): 550MM Second Lien Notes, Price at Issuance 100, Yielding 7.63%. 6. Hillenbrand Inc. (USD) 5.75% 6/15/2025 (06/09/2020): 400MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5.75%. 7. Realogy Group LLC (USD) 7.625% 6/15/2025 144A (06/09/2020): 550MM Second Lien Notes, Price at Issuance 100, Yielding 7.63%. 8. Delta Airlines (USD) 7.375% 1/15/2026 (06/10/2020): 1250MM Senior Unsecured Notes, Price at Issuance 99.986, Yielding 7.38%. 9. Level 3 Financing Inc. (USD) 4.25% 7/1/2028 (06/10/2020): 1200MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.25%. 10. Great Southern Bancorp Inc. (USD) VAR% 6/15/2030 (06/10/2020): 75MM Subordinated Notes, Price at Issuance 100. |
1. Eldorado Resorts Inc./Caesars Entertainment Corp.: $6.4B credit facilities:$1B revolver at Eldorados; $3B seven-year cove-lite TLB due 2027 at Eldorado; $2.4B seven-year cove-lite TLB due 2027 at Caesars Resorts Collection
2. Hamilton Projects Acquiror LLC: $1.015B credit facilities: $115MM revolver; $900MM TLB 3. Logmein Inc.: $3.55B credit facilities: $250MM Revolver; $2.7B first lien TL; $600MM second-lien TL 4. Mohegan Tribal Gaming Authority: $100MM first lein TL (Caa1) 5. Radio Systems Corp.: $725MM Loans: $100M ABL Facility; $625MM Senior secured bridge loan 6. RSA: $1.425B credit facilities: $75MM revolver; $1B TL; $350MM TL 7. Whole Earth Brands (ACT II GLOBAL ACQUISTION CORP.):: $235 MM credit facilities: $50MM reolver; $185MM term A 8. Xplorenet Communictations Inc.: $1.425B credit facilities (B3/B-): $150MM revolver; $1.275B first-lien TL 9. Whole Earth Brands (ACT II GLOBAL ACQUISTION CORP.):: $235 MM credit facilities: $50MM reolver; $185MM term A 10. Xplorenet Communictations Inc.: $1.425B credit facilities (B3/B-): $150MM revolver; $1.275B first-lien TL |
Additional Commentary
NEW ISSUANCE WATCH: Realogy Group LLC issued $550MM in notes.
| Top Widening Loans | Top Narrowing Loans |
| Jostens Inc. (USD) TL L+950 12/21/2026 Specialty Chemical Resources Inc. (EUR) TLB1 E+450 03/05/2027 Ahlsell AB (EUR) TL E+825 03/01/2027 Paysafe Group PLC (EUR) TL E+700 12/01/2025 Concordia International (USD) TL EXIT L+550 09/06/2024 |
Speedster Bidco GmbH (EUR) TL E+625 02/14/2028 Albea Beauty Holdings SA (USD) TLB L+300 04/12/2024 Buzz Merger Sub LTD (USD) TLB L+275 01/29/2027 American Gaming Systems (USD) TLB L+350 02/15/2024 Alera Group Holdings Inc. (USD) TLB L+450 08/01/2025 |
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 bp (basis points), as of 06/10/2020
- Net negative capital flows into high-yield ETFs & mutual funds
|
INVESTMENT GRADE BOND RESEARCH
|
June 10, 2020
|
Bond Markets
FED HELD RATES NEAR ZERO CAUSING MARKETS TO MOSTLY FALL. FED PROJECTED GDP CONTRACTION IN THE RANGE OF 4-10% NASDAQ AND TECHNOLOGY STOCKS DID HAVE AN UPDAY AGAIN. FTSE 100 -0.1%, 10 Year Treasury notes were down 8.1 basis points. S&P -.53%, Dow -1.04%, NASDAQ +0.67%.
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 7.4 MILLION+ CASES AND 416000+ DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 2.1 MILLION+ CASES AND 115000+ 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 | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Southwest Airlines Co. 1.25% 5/1/2025 Boeing Co. 5.805% 5/1/2050 CVS Health Corp. 5.05% 3/25/2048 General Electric Co. 4.35% 5/1/2050 Equinix Inc. 3% 7/15/2050 JPMorgan Chase & Co. 5% PERP (1) GE Capital Intl. Funding Co. 4.418% 11/15/2035 AT&T Inc. 3.65% 6/1/2051 Southwest Airlines Co. 4.75% 5/4/2023 Citigroup Inc. 2.572% 6/3/2031 |
| Industry Returns Tracker | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Issues | New Issues [Continued] |
|---|---|
| 1. H&R Real Estate Investment Trust (CAD) 4.071% 6/16/2025 (06/09/2020): 400MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.07%.
2. Saputo Inc. (CAD) 2.242% 6/16/2027 (06/09/2020): 700MM Unsecured Notes, Price at Issuance 100, Yielding 2.24%. 3. Pacific Premier Bancorp Inc. (USD) VAR% 6/15/2030 (06/09/2020): 150MM Subordinated Notes, Price at Issuance 100. 4. Memorial Sloan-Kettering (USD) 2.955% 1/1/2050 (06/09/2020): 450MM Unsecured Notes, Price at Issuance 100, Yielding 2.96%. 5. Hewlett-Packard Co. (USD) 3.4% 6/17/2030 (06/09/2020): 850MM Senior Unsecured Notes, Price at Issuance 99.79, Yielding 3.42%. 6. Hewlett-Packard Co. (USD) 2.2% 6/17/2025 (06/09/2020): 1150MM Senior Unsecured Notes, Price at Issuance 99.769, Yielding 2.25%. 7. Hewlett-Packard Co. (USD) 3% 6/17/2027 (06/09/2020): 1000MM Senior Unsecured Notes, Price at Issuance 99.718, Yielding 3.04%. 8. Memorial Sloan-Kettering (USD) 2.65% 1/1/2040 (06/09/2020): 50MM Unsecured Notes, Price at Issuance 100, Yielding 2.65%. 9. Credit Agricole London (USD) VAR% 6/16/2026 144A (06/09/2020): 1500MM Senior Non Preferred Notes, Price at Issuance 100. 10. Credit Agricole London (USD) 1.907% 6/16/2026 Reg S (06/09/2020): 1500MM Senior Non Preferred Notes, Price at Issuance 100, Yielding 1.91%. |
Additional Commentary
NEW ISSUANCE WATCH: on 06/10/2020 participants welcome a $3000MM new corporate-bond offering by Hewlett-Packard Co.
| Top Widening Loans | Top Narrowing Loans |
| Jostens Inc. (USD) TL L+950 12/21/2026 Specialty Chemical Resources Inc. (EUR) TLB1 E+450 03/05/2027 Ahlsell AB (EUR) TL E+825 03/01/2027 Paysafe Group PLC (EUR) TL E+700 12/01/2025 Concordia International (USD) TL EXIT L+550 09/06/2024 |
Speedster Bidco GmbH (EUR) TL E+625 02/14/2028 Albea Beauty Holdings SA (USD) TLB L+300 04/12/2024 Buzz Merger Sub LTD (USD) TLB L+275 01/29/2027 American Gaming Systems (USD) TLB L+350 02/15/2024 Alera Group Holdings Inc. (USD) TLB L+450 08/01/2025 |
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 bp (basis points), as of 06/10/2020
- Net positive capital flows into high-yield ETFs & mutual funds
Copyright 2020 Advantage Data Inc. All Rights Reserved. http://www.advantagedata.com
Information in this document should not be regarded as an offer to sell or solicitation of an offer to buy bonds or any financial instruments referred to herein. All information provided in this document is believed to be accurate. However, Advantage Data and its sources make no warranties, either express or implied, as to any matter whatsoever, including but not limited to warranties of merchantability or fitness for a particular purpose. Opinions in this document are subject to change without notice. Electronic redistribution, photocopying and any other electronic or mechanical reproduction is strictly prohibited without prior written permission from Advantage Data Inc.
Disclaimer: The information on this blog site is for informational purposes only. Advantage Data makes no representations as to the accuracy, completeness, suitability, or validity, of any information. Advantage Data will not be liable for any errors, omissions, or any losses, injuries, or damages arising from its display or use. All information is provided AS-IS with no warranties and confers no rights. Information is not and should not be considered professional financial investment advice. In all events, Advantage Data is not a broker-dealer, shall not operate as a broker or a dealer, is not holding itself out as a broker or dealer and is not engaged in the business of buying or selling securities or otherwise required to register with the National Association of Securities Dealers.
Are you using AdvantageData?
AdvantageData is your fixed income solution for pricing, analytics, reports, and insight on approximately:
- 500,000+ U.S. and international corporate bonds
- Over 6,200+ CDS reference entities
- Over 22,000+ syndicated loans
- Over 100 equity markets worldwide
- One platform 16 products and services from debt to CDS to loans to mid-market
- Used by top buy and sell-side firms worldwide
Share
