THE CORONA VIRUS SPREAD IN MULTIPLE STATES AT THE SLOWEST RATE IN OVER A WEEK. EMERGING TREATMENTS ARE HELPING SPEED UP RECOVERY AND HELP LESSEN THE NEED FOR RESPIRATORS. 10 Year Treasury notes were up 1.7 bps. S&P +1.54%, Dow +0.85%, NASDAQ +1.87%.
All Posts
Market Summaries
North American Bond Research – June 30, 2020
Posted on June 30, 2020|
HIGH YIELD BOND RESEARCH
|
June 30, 2020
|
Bond Markets
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 10.6 MILLION+ CASES AND 512000+ DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 2.7 MILLION+ CASES AND 130000+ 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 Chesapeake Energy Corp. 7% 10/1/2024 Delta Airlines 7.375% 1/15/2026 Pacific Gas & Electric Co. 3.75% 2/15/2024 PG&E Corp. 5% 7/1/2028 Occidental Petroleum Corp. 8.875% 7/15/2030 Ford Motor Co. 8.5% 4/21/2023 Pacific Gas & Electric Co. 2.95% 3/1/2026 Western Digital Corp. 4.75% 2/15/2026 Meredith Corp. 6.875% 2/1/2026 |
| Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Issues | Forward Calendar |
|---|---|
| 1. Enviva Partners LP (USD) 6.5% 1/15/2026 (06/29/2020): 150MM Senior Unsecured Notes, Price at Issuance 103.75, Yielding 5.7%.
2. Garda World Security Corp. (USD) 4.625% 2/15/2027 Reg S (06/29/2020): 120MM First Lien Notes, Price at Issuance 98, Yielding 4.98%. |
1. Martin Midstream Partners LP: $400MM senior secured notes
2. Carnival Cruise Line: $2.76B equivalent U.S. and euro five-year term B (Baa3); $1.86B TL; ¬800 TL 3. Logmein Inc.: $3.55B credit facilities: $250MM Revolver; $2.7B first lien TL; $600MM second-lien TL 4. RSA: $1.425B credit facilities: $75MM revolver; $1B TL; $350MM TL 5. Ultimate Software Group: $3.545B Term Loans: $2.945B TLB (B1/B); $600MM TL (Caa1/CCC) 6. Angus Chemical Co. : $500MM TL (B1/B/BB+): equivalent U.S. and euro 7. Blucora Inc.: $175MM add-on senior secured TL (BB) 8. RSA: $1.425B credit facilities: $75MM revolver; $1B TL; $350MM TL 9. Whole Earth Brands (ACT II GLOBAL ACQUISTION CORP.):: $235 MM credit facilities: $50MM reolver; $185MM term A 10. Logmein Inc.: $3.55B credit facilities: $250MM Revolver; $2.7B first lien TL; $600MM second-lien TL |
Additional Commentary
NEW ISSUANCE WATCH: Enviva Partners LP issued $150MM in notes.
| Top Widening Loans | Top Narrowing Loans |
| Superior Industries Intl. Inc. (USD) TLB L+400 05/23/2024 Hurtigruten Group AS (EUR) TLC E+800 06/16/2023 Syncsort Inc. (USD) TLB L+600 08/16/2024 Automate Intermediate Hldg II Sarl (EUR) TLB E+350 07/22/2026 |
Distributed Power Inc. (USD) TLB L+325 11/02/2025 PortAventura World (EUR) TLB E+350 06/14/2024 Moneygram Intl. Inc. (USD) TLB L+600 06/30/2023 American Renal Holdings Inc. (USD) TLB L+325 06/22/2024 Philadelphia Energy Solutions (USD) TLA L+625 12/31/2022 |
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 17 bp (basis points), as of 06/30/2020
- Net negative capital flows into high-yield ETFs & mutual funds
|
INVESTMENT GRADE BOND RESEARCH
|
June 30, 2020
|
Bond Markets
THE CORONA VIRUS SPREAD IN MULTIPLE STATES AT THE SLOWEST RATE IN OVER A WEEK. EMERGING TREATMENTS ARE HELPING SPEED UP RECOVERY AND HELP LESSEN THE NEED FOR RESPIRATORS. 10 Year Treasury notes were up 1.7 bps. S&P +1.54%, Dow +0.85%, NASDAQ +1.87%.
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 10.6 MILLION+ CASES AND 512000+ DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 2.7 MILLION+ CASES AND 130000+ 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 | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Boeing Co. 5.15% 5/1/2030 General Electric Co. 4.35% 5/1/2050 Citigroup Inc. 2.572% 6/3/2031 Amazon.com Inc. 1.5% 6/3/2030 Bank of America Corp. VAR% 6/19/2041 Amazon.com Inc. 2.7% 6/3/2060 Pacific Gas & Electric Co. 2.5% 2/1/2031 Pacific Gas & Electric Co. 3.5% 8/1/2050 AerCap Ireland Capital LTD 6.5% 7/15/2025 Fifth Third Bank Cincinnati OH 2.25% 6/14/2021 |
| Industry Returns Tracker | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Issues | New Issues [Continued] |
|---|---|
| 1. AIG Global Funding (USD) 0.8% 7/7/2023 144A (06/29/2020): 500MM Secured Notes, Price at Issuance 99.923, Yielding .83%.
2. AIG Global Funding (USD) 0.8% 7/7/2023 Reg S (06/29/2020): 500MM Secured Notes, Price at Issuance 99.923, Yielding .83%. 3. AEP Texas Inc. (USD) 2.1% 7/1/2030 (06/29/2020): 600MM Senior Unsecured Notes, Price at Issuance 99.597, Yielding 2.14%. 4. Met Life Global Funding Inc. (USD) 0.95% 7/2/2025 144A (06/29/2020): 750MM Secured Notes, Price at Issuance 99.825, Yielding .99%. 5. Met Life Global Funding Inc. (USD) 0.95% 7/2/2025 Reg S (06/29/2020): 750MM Secured Notes, Price at Issuance 99.825, Yielding .99%. 6. Equitable Financial Life (USD) 1.4% 7/7/2025 144A (06/29/2020): 650MM Secured Notes, Price at Issuance 99.817, Yielding 1.44%. 7. Equitable Financial Life (USD) 1.4% 7/7/2025 Reg S (06/29/2020): 650MM Secured Notes, Price at Issuance 99.817, Yielding 1.44%. 8. Children’s Hospital Corp (USD) 2.585% 2/1/2050 (06/29/2020): 300MM Senior Unsecured Notes, Price at Issuance 100, Yielding 2.59%. 9. Deutsche Bank AG of New York (USD) VAR% 7/8/2031 (06/29/2020): 500MM Subordinated Notes, Price at Issuance 100. 10. Sumitomo Mitsui Fin Grp Inc. (USD) 2.13% 7/8/2030 (06/29/2020): 1500MM Senior Unsecured Notes, Price at Issuance 100, Yielding 2.13%. |
Additional Commentary
NEW ISSUANCE WATCH: on 06/30/2020 participants welcome a $500MM new corporate-bond offering by AIG Global Funding.
| Top Widening Loans | Top Narrowing Loans |
| Superior Industries Intl. Inc. (USD) TLB L+400 05/23/2024 Hurtigruten Group AS (EUR) TLC E+800 06/16/2023 Syncsort Inc. (USD) TLB L+600 08/16/2024 Automate Intermediate Hldg II Sarl (EUR) TLB E+350 07/22/2026 Automate Intermediate Hldg II Sarl (USD) TLB L+425 07/22/2026 |
Distributed Power Inc. (USD) TLB L+325 11/02/2025 PortAventura World (EUR) TLB E+350 06/14/2024 Moneygram Intl. Inc. (USD) TLB L+600 06/30/2023 American Renal Holdings Inc. (USD) TLB L+325 06/22/2024 Philadelphia Energy Solutions (USD) TLA L+625 12/31/2022 |
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 17 bp (basis points), as of 06/30/2020
- 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
