1.5 MILLION MORE AMERICANS LOSE THEIR JOBS. CORONAVIRUS CASES KEEP ON SPIKING IN A DOZEN STATES PUTTING PRESSURE ON ECONOMIES AS TO HOW FAST THEY SHOULD OPEN UP. 10 Year Treasury notes were down 3.9 basis points. S&P +0.06%, Dow -0.15%, NASDAQ +0.33%.
All Posts
Market Summaries
North American Bond Research – June 18, 2020
Posted on June 18, 2020|
HIGH YIELD BOND RESEARCH
|
June 18, 2020
|
Bond Markets
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 8.5 MILLION+ CASES AND 455000+ DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 2.25 MILLION+ CASES AND 121000+ 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 | |||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Pacific Gas & Electric Co. 3.5% 8/1/2050 Pacific Gas & Electric Co. 2.5% 2/1/2031 T-Mobile USA Inc. 3.875% 4/15/2030 144A Pacific Gas & Electric Co. 1.75% 6/16/2022 Pacific Gas & Electric Co. 3.95% 12/1/2047 Pacific Gas & Electric Co. 3.75% 8/15/2042 Pacific Gas & Electric Co. 4.6% 6/15/2043 T-Mobile USA Inc. 3.75% 4/15/2027 144A Delta Airlines 7.375% 1/15/2026 Pacific Gas & Electric Co. 3.3% 3/15/2027 |
| Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Issues | Forward Calendar |
|---|---|
| 1. DPL Inc. (USD) 4.125% 7/1/2025 Reg S (06/17/2020): 415MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.13%.
2. DPL Inc. (USD) 4.125% 7/1/2025 144A (06/17/2020): 415MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.13%. 3. DPL Inc. (USD) 4.125% 7/1/2025 (06/17/2020): 415MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.13%. 4. Scientific Games Intl. Inc. (USD) 8.625% 7/1/2025 144A (06/17/2020): 550MM Senior Unsecured Notes, Price at Issuance 100, Yielding 8.63%. 5. Scientific Games Intl. Inc. (USD) 8.625% 7/1/2025 Reg S (06/17/2020): 550MM Senior Unsecured Notes, Price at Issuance 100, Yielding 8.63%. 6. Horizon Bancorp (USD) VAR% 7/1/2030 (06/17/2020): 60MM Subordinated Notes, Price at Issuance 100. 7. DCP Midstream Operating LP (USD) 5.625% 7/15/2027 (06/17/2020): 500MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5.63%. 8. Iron Mountain Inc. (USD) 5% 7/15/2028 144A (06/17/2020): 500MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5%. 9. Iron Mountain Inc. (USD) 5.25% 7/15/2030 144A (06/17/2020): 1300MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5.25%. 10. Iron Mountain Inc. (USD) 5.625% 7/15/2032 144A (06/17/2020): 600MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5.63%. |
1. Martin Midstream Partners LP: $400MM senior secured notes
2. Martin Midstream Partners LP: $400MM senior secured notes 3. Lummus Technology Inc. : $460MM senior notes (Caa1/B-) 4. RSA: $1.425B credit facilities: $75MM revolver; $1B TL; $350MM TL 5. Whole Earth Brands (ACT II GLOBAL ACQUISTION CORP.):: $235 MM credit facilities: $50MM reolver; $185MM term A 6. Radio Systems Corp.: $725MM Loans: $100M ABL Facility; $625MM Senior secured bridge loan 7. Mohegan Tribal Gaming Authority: $100MM first lein TL (Caa1) 8. Logmein Inc.: $3.55B credit facilities: $250MM Revolver; $2.7B first lien TL; $600MM second-lien TL 9. 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 10. Xplorenet Communictations Inc.: $1.425B credit facilities (B3/B-): $150MM revolver; $1.275B first-lien TL |
Additional Commentary
NEW ISSUANCE WATCH: DPL Inc. issued $415MM in notes.
| Top Widening Loans | Top Narrowing Loans |
| Vistra Group LTD (USD) TL2 L+725 10/26/2023 EnQuest PLC (USD) RCB L+475 10/01/2021 EG Group (USD) TLB L+400 02/06/2025 American Tire Distributors Inc. (USD) TL DIP PIK L+600 09/01/2023 Albea Beauty Holdings SA (USD) TLB L+300 04/12/2024 |
Affidea BV (EUR) TLB E+375 12/04/2026 PortAventura World (EUR) TLB E+350 06/14/2024 Fortress Merger Sub Inc. (USD) TL2 L+850 10/21/2024 Welbilt Corp. (USD) TL L+250 10/24/2025 SMG (USD) Bridge TL L+250 01/23/2025 |
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 16 bp (basis points), as of 06/18/2020
- Net negative capital flows into high-yield ETFs & mutual funds
|
INVESTMENT GRADE BOND RESEARCH
|
June 18, 2020
|
Bond Markets
1.5 MILLION MORE AMERICANS LOSE THEIR JOBS. CORONAVIRUS CASES KEEP ON SPIKING IN A DOZEN STATES PUTTING PRESSURE ON ECONOMIES AS TO HOW FAST THEY SHOULD OPEN UP. 10 Year Treasury notes were down 3.9 basis points. S&P +0.06%, Dow -0.15%, NASDAQ +0.33%.
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 8.5 MILLION+ CASES AND 455000+ DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 2.25 MILLION+ CASES AND 121000+ 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 | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Pacific Gas & Electric Co. 3.5% 8/1/2050 Pacific Gas & Electric Co. 3.3% 8/1/2040 Biogen Inc. 2.25% 5/1/2030 General Electric Co. 4.35% 5/1/2050 Boeing Co. 5.15% 5/1/2030 Amazon.com Inc. 0.8% 6/3/2025 Amazon.com Inc. 2.7% 6/3/2060 Boeing Co. 5.805% 5/1/2050 CVS Health Corp. 5.05% 3/25/2048 Pacific Gas & Electric Co. 2.1% 8/1/2027 |
| Industry Returns Tracker | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Issues | New Issues [Continued] |
|---|---|
| 1. Idaho Power Corp. (USD) 1.9% 7/15/2030 (06/17/2020): 80MM Secured Notes, Price at Issuance 99.59, Yielding 1.94%.
2. Marshfield Clinic Health System Inc. (USD) 2.703% 2/15/2030 (06/17/2020): 148MM Senior Unsecured Notes, Price at Issuance 100, Yielding 2.7%. 3. Air Lease Corp. (USD) 3.375% 7/1/2025 (06/17/2020): 850MM Senior Unsecured Notes, Price at Issuance 98.975, Yielding 3.6%. 4. Schlumberger Investment (USD) 2.65% 6/26/2030 (06/17/2020): 900MM Senior Unsecured Notes, Price at Issuance 99.608, Yielding 2.69%. 5. GLP Capital LP (USD) 4% 1/15/2031 (06/17/2020): 500MM Senior Unsecured Notes, Price at Issuance 98.827, Yielding 4.14%. 6. General Motors Financial Co. Inc. (USD) 2.75% 6/20/2025 (06/17/2020): 1250MM Senior Unsecured Notes, Price at Issuance 99.843, Yielding 2.78%. 7. General Motors Financial Co. Inc. (USD) 3.6% 6/21/2030 (06/17/2020): 750MM Senior Unsecured Notes, Price at Issuance 99.709, Yielding 3.63%. 8. Amdocs LTD (USD) 2.538% 6/15/2030 (06/17/2020): 650MM Senior Unsecured Notes, Price at Issuance 100, Yielding 2.54%. 9. Pacific Life Global Fdg MTN (USD) 1.2% 6/24/2025 144A (06/17/2020): 600MM Secured Notes, Price at Issuance 99.778, Yielding 1.25%. 10. Pacific Life Global Fdg MTN (USD) 1.2% 6/24/2025 Reg S (06/17/2020): 600MM Secured Notes, Price at Issuance 99.778, Yielding 1.25%. |
Additional Commentary
NEW ISSUANCE WATCH: on 06/17/2020 participants welcome an $80MM new corporate-bond offering by Idaho Power Corp.
| Top Widening Loans | Top Narrowing Loans |
| Vistra Group LTD (USD) TL2 L+725 10/26/2023 EnQuest PLC (USD) RCB L+475 10/01/2021 EG Group (USD) TLB L+400 02/06/2025 American Tire Distributors Inc. (USD) TL DIP PIK L+600 09/01/2023 |
Affidea BV (EUR) TLB E+375 12/04/2026 PortAventura World (EUR) TLB E+350 06/14/2024 Fortress Merger Sub Inc. (USD) TL2 L+850 10/21/2024 Welbilt Corp. (USD) TL L+250 10/24/2025 SMG (USD) Bridge TL L+250 01/23/2025 |
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 16 bp (basis points), as of 06/18/2020
- 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.
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
