STOCKS WERE HIGHER AS TECH AND ENERGY COMPANIES CLIMBED. OIL JUMPED TO 21.38. THE US IS SEEKING TO RAISE UP TO $3 TRILLION THIS QUARTER TO HELP BUSINESSES AND INDIVIDUALS DEAL WITH THE FINANCIAL FALLOUT SURROUNDING THE COVID-19 PANDEMIC. FTSE 100 -0.16%, 10 Year Treasury notes were up 2 basis points. S&P +0.42%, Dow +0.11%, NASDAQ +1.23%.
All Posts
Market Summaries
North American Bond Research – May 4, 20202
Posted on May 4, 2020|
HIGH YIELD BOND RESEARCH
|
May 4, 2020
|
Bond Markets
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 3.6 MILLION+ CASES AND 251000+ DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 1.2 MILLION+ CASES AND 70000+ DEATHS. Among high-grade bonds showing topmost price gains at appreciable volumes traded, Ferrellgas Partners LP (USD) 8.625% 6/15/2020 made analysts’ ‘Conviction Buy’ list. (See the chart below for Ferrellgas Partners LP bonds) Pierre Robert
| Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Ford Motor Co. 9.625% 4/22/2030 Ford Motor Co. 9% 4/22/2025 Petrobras Global Finance BV 6.85% 6/5/2115 Southwestern Energy Co. 4.95% 1/23/2025 Ford Motor Co. 8.5% 4/21/2023 Howmet Aerospace Inc. 6.875% 5/1/2025 Chesapeake Energy Corp. 11.5% 1/1/2025 Reg S Dynegy Inc. 5.875% 6/1/2023 (1) Western Digital Corp. 4.75% 2/15/2026 TransDigm Inc. 6.5% 7/15/2024 |
| Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Issues | Forward Calendar |
|---|---|
|
(None Current 05/04/2020)
|
1. BRP Inc.: $600MM TL B2 (B1)
2. Championx: $537MM TL 3. 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 4. Xperi Corp. : $1.1B seven-year secured covenant lite TLB 5. RSA: $1.425B credit facilities: $75MM revolver; $1B TL; $350MM TL 6. Whole Earth Brands (ACT II GLOBAL ACQUISTION CORP.):: $235 MM credit facilities: $50MM reolver; $185MM term A 7. Logmein Inc.: $3.55B credit facilities: $250MM Revolver; $2.7B first lien TL; $600MM second-lien TL 8. Open Lending LLC: $225MM TLB 9. Xperi Corp. : $1.1B seven-year secured covenant lite TLB 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 |
| Aptean Inc. (USD) TL L+425 04/24/2026 Samsonite IP Holdings SARL (USD) TLA L+150 04/19/2023 Samsonite Intl. SA (USD) TLB L+175 04/19/2025 Panera Bread Co. (USD) TLA L+200 06/13/2022 Concordia International (USD) TL EXIT L+550 09/06/2024 |
Archroma Global Services (EUR) TLB1 E+400 07/11/2024 Hamilton Holdco LLC (USD) TLB L+200 01/02/2027 Rocket Software (USD) TL L+425 11/28/2025 Orion EngineeRed Carbons Hldgs GmbH (USD) TLB L+200 07/25/2024 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 44 bp (basis points), as of 05/04/2020
- Net negative capital flows into high-yield ETFs & mutual funds
|
INVESTMENT GRADE BOND RESEARCH
|
May 4, 2020
|
Bond Markets
STOCKS WERE HIGHER AS TECH AND ENERGY COMPANIES CLIMBED. OIL JUMPED TO 21.38. THE US IS SEEKING TO RAISE UP TO $3 TRILLION THIS QUARTER TO HELP BUSINESSES AND INDIVIDUALS DEAL WITH THE FINANCIAL FALLOUT SURROUNDING THE COVID-19 PANDEMIC. FTSE 100 -0.16%, 10 Year Treasury notes were up 2 basis points. S&P +0.42%, Dow +0.11%, NASDAQ +1.23%.
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 3.6 MILLION+ CASES AND 251000+ DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 1.2 MILLION+ CASES AND 70000+ DEATHS. Among high-grade bonds showing topmost price gains at appreciable volumes traded, United Parcel Service Inc. (USD) 4.875% 11/15/2040 made analysts’ ‘Conviction Buy’ list. (See the chart below for United Parcel Service Inc. bonds) Pierre Robert
| Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Boeing Co. 5.15% 5/1/2030 Boeing Co. 5.805% 5/1/2050 Boeing Co. 4.508% 5/1/2023 Boeing Co. 4.875% 5/1/2025 Boeing Co. 5.93% 5/1/2060 Boeing Co. 5.705% 5/1/2040 Boeing Co. 5.04% 5/1/2027 Southwest Airlines Co. 1.25% 5/1/2025 Oracle Corp. 2.95% 4/1/2030 AT&T Inc. 4.5% 3/9/2048 |
| Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Issues | New Issues [Continued] |
|---|---|
| 1. New York Life Insurance Co. (USD) 1.1% 5/5/2023 (05/04/2020): 650MM Secured Notes, Price at Issuance 99.979, Yielding 1.11%.
2. Teachers Insurance & Annuity Assoc. Of America (USD) 3.3% 5/15/2050 144A (05/04/2020): 1250MM Subordinated Notes, Price at Issuance 99.867, Yielding 3.31%. 3. Oneok Inc. (USD) 6.35% 1/15/2031 (05/04/2020): 600MM Senior Unsecured Notes, Price at Issuance 99.667, Yielding 6.39%. 4. Oneok Inc. (USD) 7.15% 1/15/2051 (05/04/2020): 300MM Senior Unsecured Notes, Price at Issuance 99.632, Yielding 7.18%. 5. Oneok Inc. (USD) 5.85% 1/15/2026 (05/04/2020): 600MM Senior Unsecured Notes, Price at Issuance 99.943, Yielding 5.86%. 6. Marsh & McLennan Cos Inc. (USD) 2.25% 11/15/2030 (05/04/2020): 750MM Senior Unsecured Notes, Price at Issuance 99.146, Yielding 2.34%. 7. Starbucks Corp. (USD) 1.3% 5/7/2022 (05/04/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.933, Yielding 1.33%. 8. Starbucks Corp. (USD) 2.55% 11/15/2030 (05/04/2020): 1250MM Senior Unsecured Notes, Price at Issuance 99.725, Yielding 2.58%. 9. Starbucks Corp. (USD) 3.5% 11/15/2050 (05/04/2020): 1250MM Senior Unsecured Notes, Price at Issuance 99.33, Yielding 3.54%. 10. Altria Group Inc. (USD) 4.45% 5/6/2050 (05/04/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.198, Yielding 4.5%. |
Additional Commentary
NEW ISSUANCE WATCH: on 05/04/2020 participants welcome a $650MM new corporate-bond offering by New York Life Insurance Co.
| Top Widening Loans | Top Narrowing Loans |
| Aptean Inc. (USD) TL L+425 04/24/2026 Samsonite IP Holdings SARL (USD) TLA L+150 04/19/2023 Samsonite Intl. SA (USD) TLB L+175 04/19/2025 Panera Bread Co. (USD) TLA L+200 06/13/2022 Concordia International (USD) TL EXIT L+550 09/06/2024 |
Archroma Global Services (EUR) TLB1 E+400 07/11/2024 Hamilton Holdco LLC (USD) TLB L+200 01/02/2027 Rocket Software (USD) TL L+425 11/28/2025 Orion EngineeRed Carbons Hldgs GmbH (USD) TLB L+200 07/25/2024 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 44 bp (basis points), as of 05/04/2020
- 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
