Grid IconAll Posts Market Summaries

North American Bond Research – June 22, 2020

Posted on June 22, 2020
HIGH YIELD BOND RESEARCH
June 22, 2020
Bond Markets

MARKETS WERE MIXED TO LOWER AS CORONA VIRUS FLARES UP IN MULTIPLE HOT SPOTS. US MARKETS FINISHED HIGHER AS APPLE PARTS WAYS WITH INTEL. 10 Year Treasury notes were UP .7 basis points. S&P +0.65%, Dow +0.59%, NASDAQ +1.11%.
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 9.2 MILLION+ CASES AND 475000+ DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 2.4 MILLION+ CASES AND 123000+ 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. 3.3% 12/1/2027 +0.1%
  Pacific Gas & Electric Co. 4.45% 4/15/2042 +0.7%
  Amerant Bancorp Inc. 5.75% 6/30/2025 +2.5%
  Dish DBS Corp. 6.75% 6/1/2021 (1) +1.2%
  Pacific Gas & Electric Co. 4.3% 3/15/2045 +0.4%
–   Equinix Inc. 5.375% 5/15/2027 -0.3%
  T-Mobile USA Inc. 3.875% 4/15/2030 144A -0.2%
  Sabine Pass Liquefaction LLC 5.625% 3/1/2025 -0.0%
  Ford Motor Co. 9.625% 4/22/2030 -15.2%
  Delta Airlines 7.375% 1/15/2026 -2.9%
Pacific Gas & Electric Co.   3.3% 12/1/2027
Pacific Gas & Electric Co.   4.45% 4/15/2042
Amerant Bancorp Inc.   5.75% 6/30/2025
Equinix Inc.   5.375% 5/15/2027
T-Mobile USA Inc.   3.875% 4/15/2030 144A
Dish DBS Corp.   6.75% 6/1/2021 (1)
Sabine Pass Liquefaction LLC   5.625% 3/1/2025
Ford Motor Co.   9.625% 4/22/2030
Delta Airlines   7.375% 1/15/2026
Ford Motor Co.   9% 4/22/2025
Industry Returns Tracker
Industry Past Day Past Week Past Month Past Quarter YTD Past Year
Agriculture, Forestry, Fishing 0.04% 0.45% 3.08% 15.70% 1.51% 6.87%
Mining 0.01% 1.21% 21.98% 31.79% -17.46% -10.41%
Construction -0.04% 0.64% 5.05% 8.48% -0.02% 6.04%
Manufacturing -0.04% 0.83% 6.36% 13.66% -1.19% 5.07%
Transportion, Communication, Electric/Gas -0.09% 0.64% 4.10% 18.17% 1.46% 6.83%
Wholesale -0.09% 0.39% 5.84% 20.42% -1.11% 4.14%
Retail -0.09% 0.66% 9.47% 11.99% -3.03% 2.45%
Finance, Insurance, Real-Estate -0.04% 0.75% 6.93% 11.27% -1.99% 3.72%
Services -0.08% 0.55% 6.11% 14.69% -0.99% 5.29%
Public Administration 0.12% 1.14% 6.34% 21.06% 1.20% 7.66%
Energy -0.06% 1.22% 20.11% 35.73% -14.58% -8.46%
 
Total returns (non-annualized) by rating, market weighted.

New Issues Forward Calendar
1. CommScope Inc. (USD) 7.125% 7/1/2028 144A (06/22/2020): 700MM Senior Unsecured Notes, Price at Issuance 100, Yielding 7.13%.

2. Fortune Star Bvi Ltd (USD) 6.85% 7/2/2024 (06/22/2020): 600MM Senior Unsecured Notes.

1. Whole Earth Brands (ACT II GLOBAL ACQUISTION CORP.):: $235 MM credit facilities: $50MM reolver; $185MM term A

2. RSA: $1.425B credit facilities: $75MM revolver; $1B TL; $350MM TL

3. Neenah Inc.: $200MM covenant-lite TLB (Ba3/BBB-)

4. Mohegan Tribal Gaming Authority: $100MM first lein TL (Caa1)

5. Logmein Inc.: $3.55B credit facilities: $250MM Revolver; $2.7B first lien TL; $600MM second-lien TL

6. Blucora Inc.: $175MM add-on senior secured TL (BB)

7. Martin Midstream Partners LP: $400MM senior secured notes

8. Martin Midstream Partners LP: $400MM senior secured notes

9. Lummus Technology Inc. : $460MM senior notes (Caa1/B-)

10. Whole Earth Brands (ACT II GLOBAL ACQUISTION CORP.):: $235 MM credit facilities: $50MM reolver; $185MM term A

Additional Commentary

NEW ISSUANCE WATCH: CommScope Inc issued $700MM in notes.
Top Widening Loans Top Narrowing Loans
Wynn Resorts (Macau) SA (USD) TL 06/26/2022
Automate Intermediate Hldg II Sarl (EUR) TLB E+350 07/22/2026
Automate Intermediate Hldg II Sarl (USD) TLB L+425 07/22/2026
Dental Corp. (USD) TL2 L+750 06/06/2026
Concordia International (USD) TL EXIT L+550 09/06/2024
SMG (USD) Bridge TL L+250 01/23/2025
Learning Care Group Inc. (USD) TLB L+325 03/13/2025
Affidea BV (EUR) TLB E+375 12/04/2026
Welbilt Corp. (USD) TL L+250 10/24/2025
GGP Inc. (USD) TLA2 L+250 08/24/2023

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 06/22/2020
  • Net negative capital flows into high-yield ETFs & mutual funds

 

INVESTMENT GRADE BOND RESEARCH
June 22, 2020
Bond Markets

MARKETS WERE MIXED TO LOWER AS CORONA VIRUS FLARES UP IN MULTIPLE HOT SPOTS. US MARKETS FINISHED HIGHER AS APPLE PARTS WAYS WITH INTEL. 10 Year Treasury notes were UP .7 basis points. S&P +0.65%, Dow +0.59%, NASDAQ +1.11%.
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 9.2 MILLION+ CASES AND 475000+ DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 2.4 MILLION+ CASES AND 123000+ 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
+   Merck & Co. Inc. 2.45% 6/24/2050 +0.5%
  Pacific Gas & Electric Co. 2.5% 2/1/2031 +0.3%
  Boeing Co. 4.875% 5/1/2025 +0.2%
  Amazon.com Inc. 2.5% 6/3/2050 +0.1%
  AT&T Inc. 2.75% 6/1/2031 +0.1%
–   Pacific Gas & Electric Co. 2.1% 8/1/2027 -0.0%
  Waste Management Inc. 2.95% 6/15/2024 -1.2%
  Pacific Gas & Electric Co. 3.5% 8/1/2050 -1.2%
  AT&T Inc. 3.65% 6/1/2051 -1.2%
  Altria Group Inc. 4.8% 2/14/2029 -0.1%
Pacific Gas & Electric Co.   2.1% 8/1/2027
Merck & Co. Inc.   2.45% 6/24/2050
Waste Management Inc.   2.95% 6/15/2024
Pacific Gas & Electric Co.   3.5% 8/1/2050
Pacific Gas & Electric Co.   2.5% 2/1/2031
AT&T Inc.   3.65% 6/1/2051
Boeing Co.   4.875% 5/1/2025
Altria Group Inc.   4.8% 2/14/2029
Bank of America Corp.   VAR% 6/19/2026
Pacific Gas & Electric Co.   3.3% 8/1/2040
Industry Returns Tracker
Industry Past Day Past Week Past Month Past Quarter YTD Past Year
Mining 0.11% 0.75% 6.44% 18.17% 1.94% 7.53%
Construction -0.09% 1.06% 5.11% 9.73% 2.12% 6.27%
Manufacturing 0.04% 0.56% 2.92% 11.18% 4.94% 10.06%
Transportion, Communication, Electric/Gas 0.04% 0.69% 3.86% 16.21% 5.89% 12.19%
Wholesale -0.00% 0.74% 4.49% 8.48% 3.99% 10.34%
Retail 0.03% 0.52% 3.13% 12.36% 5.97% 12.14%
Finance, Insurance, Real-Estate 0.01% 0.52% 2.87% 9.17% 4.14% 8.33%
Services 0.00% 0.69% 3.23% 10.45% 4.56% 9.48%
Public Administration 0.04% 0.02% 0.20% 1.50% 4.16% 5.47%
Energy 0.07% 0.76% 6.79% 19.93% 2.05% 7.80%
 
Total returns (non-annualized) by rating, market weighted.

New Issues New Issues [Continued]
1. Duke Realty LP (USD) 1.75% 7/1/2030 (06/22/2020): 350MM Senior Unsecured Notes, Price at Issuance 99.072, Yielding 1.85%.

2. Abbott Laboratories (USD) 1.15% 1/30/2028 (06/22/2020): 650MM Senior Unsecured Notes, Price at Issuance 99.37, Yielding 1.24%.

3. Abbott Laboratories (USD) 1.4% 6/30/2030 (06/22/2020): 650MM Senior Unsecured Notes, Price at Issuance 98.567, Yielding 1.55%.

4. Canadian Natural Resources LTD (USD) 2.05% 7/15/2025 (06/22/2020): 600MM Senior Unsecured Notes, Price at Issuance 99.832, Yielding 2.09%.

5. Canadian Natural Resources LTD (USD) 2.95% 7/15/2030 (06/22/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.955, Yielding 2.96%.

6. Byline Bancorp Inc. (USD) VAR% 7/1/2030 (06/22/2020): 50MM Subordinated Notes, Price at Issuance 100.

Additional Commentary

NEW ISSUANCE WATCH: on 06/22/2020 participants welcome a $350MM new corporate-bond offering by Duke Realty LP.
Top Widening Loans Top Narrowing Loans
Wynn Resorts (Macau) SA (USD) TL 06/26/2022
Automate Intermediate Hldg II Sarl (EUR) TLB E+350 07/22/2026
Automate Intermediate Hldg II Sarl (USD) TLB L+425 07/22/2026
Dental Corp. (USD) TL2 L+750 06/06/2026
SMG (USD) Bridge TL L+250 01/23/2025
Learning Care Group Inc. (USD) TLB L+325 03/13/2025
Affidea BV (EUR) TLB E+375 12/04/2026
Welbilt Corp. (USD) TL L+250 10/24/2025
GGP Inc. (USD) TLA2 L+250 08/24/2023

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 06/22/2020
  • 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 300,000+ BDC fair value assessments dating back to 2000
  • Over 22,000+ syndicated loans
  • Over 100 equity markets worldwide
  • One platform 15 products and services from debt to loans to mid-market
  • Used by top buy and sell-side firms worldwide

Share

facebook share icon twitter share icon linkedin share icon
Ready to get Started? Free Trial