MARKETS TOOK OFF AS POWELL GAVE BROAD ASSURANCES THAT THE FED WILL DO ANYTHING TO SUPPORT THE ECONOMY. HE STATED THAT IF THE CORONAVIRUS DOES NOT HAVE A SECOND WAVE THAT THE ECONOMY WOULD MOST LIKELY START RECOVERING IN THE SECOND HALF OF 2020. 10 Year Treasury notes were up 10.41 basis points. S&P +3.16%, Dow +3.83%, NASDAQ +2.41%.
All Posts
Market Summaries
North American Bond Research – May 18, 2020
Posted on May 18, 2020|
HIGH YIELD BOND RESEARCH
|
May 18, 2020
|
Bond Markets
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 4.9 MILLION+ CASES AND 320000+ DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 1.6 MILLION+ CASES AND 92000+ 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 | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Ford Motor Co. 8.5% 4/21/2023 Ford Motor Co. 9% 4/22/2025 Intl Lease Finance Corp. 4.625% 4/15/2021 Occidental Petroleum Corp. 2.7% 8/15/2022 General Motors Co. 6.25% 10/2/2043 AerCap Ireland Capital LTD 4.625% 7/1/2022 Barclays Bank PLC 5.14% 10/14/2020 Ford Motor Co. 9.625% 4/22/2030 Gap Inc. 5.95% 4/12/2021 Occidental Petroleum Corp. 3.5% 8/15/2029 |
| Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Issues | Forward Calendar |
|---|---|
|
(None Current 05/18/2020)
|
1. Xperi Corp. : $1.1B seven-year secured covenant lite TLB
2. RSA: $1.425B credit facilities: $75MM revolver; $1B TL; $350MM TL 3. Ziply Fiber: $790.5MM TLB 4. Whole Earth Brands (ACT II GLOBAL ACQUISTION CORP.):: $235 MM credit facilities: $50MM reolver; $185MM term A 5. Radio Systems Corp.: $725MM Loans: $100M ABL Facility; $625MM Senior secured bridge loan 6. Logmein Inc.: $3.55B credit facilities: $250MM Revolver; $2.7B first lien TL; $600MM second-lien TL 7. 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 8. Championx: $537MM TL 9. Alterra Mountain Co. : $400MM incremental TL (B1/B) 10. Whole Earth Brands (ACT II GLOBAL ACQUISTION CORP.):: $235 MM credit facilities: $50MM reolver; $185MM term A |
Additional Commentary
NEW ISSUANCE WATCH: No New Issues
| Top Widening Loans | Top Narrowing Loans |
| Netsmart Technologies Inc. (USD) TL L+750 10/19/2023 Fujairah Asia Power (AED) TL L+50 07/28/2030 Logoplaste (EUR) TLB E+400 10/31/2023 Tacala LLC (USD) TLB L+775 02/01/2026 Entertainment Properties Trust (USD) TL L+110 02/27/2023 |
Allsup’s (USD) TLB L+625 11/18/2024 Hamilton Holdco LLC (USD) TLB L+200 01/02/2027 Albea Beauty Holdings SA (USD) TLB L+300 04/12/2024 Salient CRGT Inc. (USD) TL L+575 02/24/2022 Imperva Inc. (USD) TL2 L+775 01/10/2027 |
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 27 bp (basis points), as of 05/18/2020
- Net negative capital flows into high-yield ETFs & mutual funds
|
INVESTMENT GRADE BOND RESEARCH
|
May 18, 2020
|
Bond Markets
MARKETS TOOK OFF AS POWELL GAVE BROAD ASSURANCES THAT THE FED WILL DO ANYTHING TO SUPPORT THE ECONOMY. HE STATED THAT IF THE CORONAVIRUS DOES NOT HAVE A SECOND WAVE THAT THE ECONOMY WOULD MOST LIKELY START RECOVERING IN THE SECOND HALF OF 2020. 10 Year Treasury notes were up 10.41 basis points. S&P +3.16%, Dow +3.83%, NASDAQ +2.41%.
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 4.9 MILLION+ CASES AND 320000+ DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 1.6 MILLION+ CASES AND 92000+ 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 | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Coca-Cola Co. 2.6% 6/1/2050 Lowe’s Companies Inc. 5% 4/15/2040 Walt Disney Co. 3.6% 1/13/2051 Viacom Inc. 4.95% 5/19/2050 Viacom Inc. 4.2% 5/19/2032 Boeing Co. 5.93% 5/1/2060 Walt Disney Co. 2.65% 1/13/2031 Southwest Airlines Co. 1.25% 5/1/2025 Intl Business Machines Corp. 1.95% 5/15/2030 UnitedHealth Group Inc. 2.9% 5/15/2050 |
| Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Issues | New Issues [Continued] |
|---|---|
| 1. Royal Bank of Canada (CAD) 2.7% 5/22/2035 (05/18/2020): 50MM Senior Unsecured Notes, Price at Issuance 100, Yielding 2.7%. |
Additional Commentary
NEW ISSUANCE WATCH: on 05/18/2020 participants welcome a $50MM new corporate-bond offering by Royal Bank of Canada.
| Top Widening Loans | Top Narrowing Loans |
| Netsmart Technologies Inc. (USD) TL L+750 10/19/2023 Fujairah Asia Power (AED) TL L+50 07/28/2030 Logoplaste (EUR) TLB E+400 10/31/2023 Tacala LLC (USD) TLB L+775 02/01/2026 Entertainment Properties Trust (USD) TL L+110 02/27/2023 |
Allsup’s (USD) TLB L+625 11/18/2024 Hamilton Holdco LLC (USD) TLB L+200 01/02/2027 Albea Beauty Holdings SA (USD) TLB L+300 04/12/2024 Salient CRGT Inc. (USD) TL L+575 02/24/2022 Imperva Inc. (USD) TL2 L+775 01/10/2027 |
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 27 bp (basis points), as of 05/18/2020
- 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.
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
