AS AMERICA OPENS UP AND STIMULUS MONEY POURS INTO THE ECONOMY, MARKETS KEEP SOARING. TRAVEL, AIR, AND LEISURE ALL JUMPED UP PUSHING THE MARKETS HIGHER. 10 Year Treasury notes were down 2 basis points. S&P +1.2%, Dow +1.7%, NASDAQ +1.13%.
All Posts
Market Summaries
North American Bond Research – June 8, 2020
Posted on June 8, 2020|
HIGH YIELD BOND RESEARCH
|
June 8, 2020
|
Bond Markets
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 6.8 MILLION+ CASES AND 410000+ DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 2.05 MILLION+ CASES AND 113000+ 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 T-Mobile USA Inc. 3.5% 4/15/2025 144A Ford Motor Co. 9% 4/22/2025 Hertz Corp. 6.25% 10/15/2022 Oasis Petroleum Inc. 6.875% 3/15/2022 (1) Petrobras Global Finance BV 7.375% 1/17/2027 Azul Investments LLP 5.875% 10/26/2024 Reg S Petrobras Global Finance BV 6.85% 6/5/2115 T-Mobile USA Inc. 3.75% 4/15/2027 144A Whiting Petroleum Corp. 6.625% 1/15/2026 |
| Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Issues | Forward Calendar |
|---|---|
|
(None Current 06/08/2020)
|
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 |
Additional Commentary
NEW ISSUANCE WATCH: No New Issues
| Top Widening Loans | Top Narrowing Loans |
| Dubois Chemicals Inc. (USD) TL L+850 10/08/2027 Hanjin Intl. Corp. (USD) TLB L+250 09/20/2020 Sundyne US Purchaser (USD) TLB L+425 03/17/2027 SeaWorld Parks & Entertainment Inc. (USD) TLB5 L+300 03/31/2024 Koninklijke Ten Cate NV (EUR) TLB E+350 01/27/2023 |
American Tire Distributors Inc. (USD) TL DIP PIK L+600 09/01/2023 Aristotle Corp. (USD) TLA L+450 05/31/2021 Mavenir Inc. (USD) TLB L+600 05/08/2025 Concordia International (USD) TL EXIT L+550 09/06/2024 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 06/08/2020
- Net negative capital flows into high-yield ETFs & mutual funds
|
INVESTMENT GRADE BOND RESEARCH
|
June 8, 2020
|
Bond Markets
AS AMERICA OPENS UP AND STIMULUS MONEY POURS INTO THE ECONOMY, MARKETS KEEP SOARING. TRAVEL, AIR, AND LEISURE ALL JUMPED UP PUSHING THE MARKETS HIGHER. 10 Year Treasury notes were down 2 basis points. S&P +1.2%, Dow +1.7%, NASDAQ +1.13%.
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 6.8 MILLION+ CASES AND 410000+ DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 2.05 MILLION+ CASES AND 113000+ 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 Boeing Co. 5.93% 5/1/2060 Dupont de Nemours Inc. 2.169% 5/1/2023 Boeing Co. 4.875% 5/1/2025 Amazon.com Inc. 0.8% 6/3/2025 AT&T Inc. 2.75% 6/1/2031 Amazon.com Inc. 2.5% 6/3/2050 CVS Health Corp. 4.3% 3/25/2028 AerCap Ireland Capital LTD 6.5% 7/15/2025 Amazon.com Inc. 2.7% 6/3/2060 |
| Industry Returns Tracker | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Issues | New Issues [Continued] |
|---|---|
| 1. Magna International Inc. (USD) 2.45% 6/15/2030 (06/08/2020): 750MM Senior Unsecured Notes, Price at Issuance 99.569, Yielding 2.5%.
2. Brixmor Operating Partnership LP (USD) 4.05% 7/1/2030 (06/08/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.776, Yielding 4.08%. 3. Roper Technologies Inc. (USD) 2% 6/30/2030 (06/08/2020): 600MM Senior Unsecured Notes, Price at Issuance 98.877, Yielding 2.12%. 4. Plains All American Pipeline LP (USD) 3.8% 9/15/2030 (06/08/2020): 750MM Senior Unsecured Notes, Price at Issuance 99.794, Yielding 3.82%. 5. Duke Energy Florida Inc. (USD) 1.75% 6/15/2030 (06/08/2020): 500MM Secured Notes, Price at Issuance 99.863, Yielding 1.76%. 6. Northern States Power Co. of Minnesota (USD) 2.6% 6/1/2051 (06/08/2020): 700MM Secured Notes, Price at Issuance 98.118, Yielding 2.69%. 7. Lloyds Banking Group PLC (USD) VAR% 6/15/2023 (06/08/2020): 1000MM Senior Unsecured Notes, Price at Issuance 100, Yielding 1.33%. 8. Equinix Inc. (USD) 2.15% 7/15/2030 (06/08/2020): 1100MM Senior Unsecured Notes, Price at Issuance 99.711, Yielding 2.18%. 9. Equinix Inc. (USD) 3% 7/15/2050 (06/08/2020): 500MM Senior Unsecured Notes, Price at Issuance 98.264, Yielding 3.09%. 10. Equinix Inc. (USD) 1.25% 7/15/2025 (06/08/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.77, Yielding 1.3%. |
Additional Commentary
NEW ISSUANCE WATCH: on 06/05/2020 participants welcome a $500MM new corporate-bond offering by Duke Energy Florida Inc.
| Top Widening Loans | Top Narrowing Loans |
| Dubois Chemicals Inc. (USD) TL L+850 10/08/2027 Hanjin Intl. Corp. (USD) TLB L+250 09/20/2020 Sundyne US Purchaser (USD) TLB L+425 03/17/2027 SeaWorld Parks & Entertainment Inc. (USD) TLB5 L+300 03/31/2024 Koninklijke Ten Cate NV (EUR) TLB E+350 01/27/2023 |
American Tire Distributors Inc. (USD) TL DIP PIK L+600 09/01/2023 Aristotle Corp. (USD) TLA L+450 05/31/2021 Mavenir Inc. (USD) TLB L+600 05/08/2025 Concordia International (USD) TL EXIT L+550 09/06/2024 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 06/08/2020
- 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
