Grid IconAll Posts Market Summaries

North American Bond Research – November 15, 2019

Posted on November 15, 2019
HIGH YIELD BOND RESEARCH
November 15, 2019
Bond Markets

STOCK MARKET POPPED ON NEWS THAT A CHINA/US DEAL IS NEAR. The 10 years note rose for the first time this week. The week had mixed retail numbers and weak factory numbers. The 10-year note rose 1.9 basis points. S&P +0.77%, DOW +0.80%, NASDAQ +0.73%
FORMER AMBASSADOR MARIE YOVANOVITCH TESTIFIED IN FRONT OF THE HOUSE INTELLIGENCE COMMITTEE. While testifying President Trump tweeted out insults and disparaging remarks.ADI proprietary index data showed a net yield increment for high-grade versus high-yield bondsHigh-yield edged out high-yield. Among high-grade bonds showing topmost price gains at appreciable volumes traded, JC Penney Co Inc (USD) 7.625% 3/1/2097 made analysts’ ‘Conviction Buy’ list. (See the chart below for JC Penney Co Inc bonds) Pierre Robert
Key Gainers and Losers Volume Leaders
+   Intelsat Luxembourg SA 8.125% 6/1/2023 + 5.7%
  Intelsat Jackson Hldg SA 5.5% 8/1/2023 (1) + 6.2%
  Centene Corp. 4.75% 1/15/2025 + 0.2%
–   Dish DBS Corp. 5.875% 11/15/2024 -0.1%
  Teva Pharmaceuticals Fin BV 6% 4/15/2024 -1.4%
  DaVita HealthCare Partners Inc. 5% 5/1/2025 -0.1%
Intelsat Luxembourg SA   8.125% 6/1/2023
Chesapeake Energy Corp.   7% 10/1/2024
Dish DBS Corp.   6.75% 6/1/2021 (1)
Industry Returns Tracker
Industry Past Day Past Week Past Month Past Quarter YTD Past Year
Agriculture, Forestry, Fishing -0.32% 0.12% 0.29% 3.47% 17.74% 17.64%
Mining -0.01% -0.06% -0.21% -0.19% 5.31% 1.54%
Construction 0.04% -0.20% 0.18% 2.60% 14.41% 13.14%
Manufacturing 0.04% 0.17% 1.38% 2.85% 12.01% 10.49%
Transportion, Communication, Electric/Gas 0.05% -0.03% -0.12% 1.54% 13.50% 12.24%
Wholesale -0.06% 0.08% 0.03% 1.42% 11.81% 9.48%
Retail -0.08% -0.25% 0.32% 2.09% 15.18% 12.57%
Finance, Insurance, Real-Estate 0.02% 0.05% 0.83% 2.33% 13.65% 11.58%
Services 0.02% -0.21% 0.40% 2.56% 12.31% 10.88%
Public Administration 0.22% 0.45% 0.95% 1.86% 14.11% 15.56%
Energy 0.04% 0.01% -0.34% -0.32% 5.89% 2.43%
 
Total returns (non-annualized) by rating, market weighted.

New Issues Forward Calendar
1. Asgn Incorporated (USD) 4.625% 5/15/2028 144A (11/14/2019): 550MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.63%.

2. Wolverine Escrow LLC (USD) 8.5% 11/15/2024 (11/14/2019): 650MM Secured Notes, Price at Issuance 99, Yielding 8.75%.

1. Qmax Financial Holdings Inc.: $225MM, Expected 4th Quarter 2019

2. Diamondback Energy Inc.: High-yield notes, Expected Q4 2019

Additional Commentary

NEW ISSUANCE WATCH: on 11/14/19 participants welcome a $1175MM new corporate-bond offering by
Wolverine Ecrow The most recent data showed a money flowed out of ETF/mutual funds for the week ended 11/01/2019, with a net inflow of $940 Million.
Top Widening Credit Default Swaps (CDS) Top Narrowing Credit Default Swaps (CDS)
Rite Aid Corp. (5Y Sen USD MR14)
Hertz Corp. (5Y Sen USD CR14)
Ghana, Republic of (5Y Sen USD CR14)
Export Credit Bank of Turkey (5Y Sen USD CR14)

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 34 bp (basis points), as of 11/15/19
  • Net positive capital flows into high-yield ETFs & mutual funds

 

INVESTMENT GRADE BOND RESEARCH
November 15, 2019
Bond Markets

STOCK MARKET POPPED ON NEWS THAT A CHINA/US DEAL IS NEAR. The 10 years note rose for the first time this week. The week had mixed retail numbers and weak factory numbers. The 10-year note rose 1.9 basis points. S&P +0.77%, DOW +0.80%, NASDAQ +0.73%
FORMER AMBASSADOR MARIE YOVANOVITCH TESTIFIED IN FRONT OF THE HOUSE INTELLIGENCE COMMITTEE. While testifying President Trump tweeted out insults and disparaging remarks. ADI proprietary index data showed a net yield increment for high-grade versus high-yield bondsHigh-yield edged out high-yield. Among high-grade bonds showing topmost price gains at appreciable volumes traded,  Viacom Inc. (USD) 2.25% 2/4/2022  made analysts’ ‘Conviction Buy’ list. (See the chart below for Viacom Inc. bonds) Pierre Robert
Key Gainers and Losers Volume Leaders
+   UnitedHealth Group Inc. 3.7% 8/15/2049 + 0.4%
  CVS Health Corp. 5.05% 3/25/2048 + 0.2%
  Bank of America Corp. VAR% 7/21/2028 + 0.0%
–   Pfizer Inc. 4% 3/15/2049 -0.6%
  Abbvie Inc. 3.375% 11/14/2021 -0.1%
  GE Capital Intl. Funding Co. 4.418% 11/15/2035 -0.1%
UnitedHealth Group Inc.   3.7% 8/15/2049
General Motors Financial Co. Inc.   3.45% 4/10/2022
Dowdupont Inc.   4.205% 11/15/2023
Industry Returns Tracker
Industry Past Day Past Week Past Month Past Quarter YTD Past Year
Agriculture, Forestry, Fishing 0.16% 0.34% 0.64% 1.13% 5.89% 6.49%
Mining 0.29% 0.53% 0.18% 0.15% 11.83% 13.13%
Construction 0.32% 0.51% 0.19% 0.15% 9.62% 10.51%
Manufacturing 0.28% 0.60% 0.50% 0.52% 11.15% 12.15%
Transportion, Communication, Electric/Gas 0.40% 0.69% 0.39% -0.06% 13.81% 15.69%
Wholesale 0.23% 0.57% 0.89% 1.35% 13.27% 13.29%
Retail 0.30% 0.65% 0.38% 0.43% 12.39% 13.54%
Finance, Insurance, Real-Estate 0.22% 0.44% 0.51% 0.63% 9.75% 10.98%
Services 0.30% 0.59% 0.33% 0.44% 11.05% 12.51%
Public Administration 0.12% 0.23% 0.09% 0.16% 4.60% 6.35%
Energy 0.30% 0.53% 0.23% 0.05% 12.18% 13.35%
 
Total returns (non-annualized) by rating, market weighted.

New Issues New Issues [Continued]
1. Abbvie Inc. (USD) 2.6% 11/21/2024 144A (11/14/2019): 3750MM Senior Unsecured Notes, Price at Issuance 99.911, Yielding 2.62%.

2. Stetson University, Inc. (USD) 4.094% 12/1/2059 (11/14/2019): 53MM Unsecured Notes, Price at Issuance 100, Yielding 4.09%.

3. Kansas City Southern (USD) 2.875% 11/15/2029 (11/14/2019): 425MM Senior Unsecured Notes, Price at Issuance 99.914, Yielding 2.88%.

Additional Commentary

NEW ISSUANCE WATCH: on 11/14/19 participants welcome a $1000MM new corporate-bond offering by
Nationwide Financial ServiceThe most recent data showed a money flowed out of ETF/mutual funds for the week ended 11/01/2019, with a net inflow of $940 Million.
Top Widening Credit Default Swaps (CDS) Top Narrowing Credit Default Swaps (CDS)
Rite Aid Corp. (5Y Sen USD MR14)
Weatherford International LTD (5Y Sen USD MR14)
Hertz Corp. (5Y Sen USD CR14)
Ghana, Republic of (5Y Sen USD CR14)
Export Credit Bank of Turkey (5Y Sen USD CR14)
SuperValu Inc. (5Y Sen USD XR14)

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 34 bp (basis points), as of 11/15/19
  • Net positive capital flows into high-yield ETFs & mutual funds

Copyright 2019 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

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