
North American Bond Research – November 18, 2020
Posted on November 18, 2020
HIGH YIELD BOND RESEARCH
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November 18, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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Pacific Gas & Electric Co. 4.95% 7/1/2050 Pacific Gas & Electric Co. 4% 12/1/2046 Pacific Gas & Electric Co. 4.25% 8/1/2023 Laredo Petroleum 9.5% 1/15/2025 Broadcom LTD 4.25% 4/15/2026 PBF Hldg Co. LLC 7.25% 6/15/2025 Macy’s Retail Hldg Inc. 4.3% 2/15/2043 Pacific Gas & Electric Co. 4.25% 3/15/2046 Pacific Gas & Electric Co. 3.3% 12/1/2027 QEP Resources Inc. 5.25% 5/1/2023 |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | Forward Calendar |
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1. Service Properties Trust (USD) 5.5% 12/15/2027 (11/17/2020): 450MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5.5%.
2. NRG Energy Inc. (USD) 3.375% 2/15/2029 Reg S (11/17/2020): 500MM Senior Unsecured Notes, Price at Issuance 100, Yielding 3.38%. 3. MGM Growth Properties Operating Partnership LP (USD) 3.875% 2/15/2029 Reg S (11/17/2020): 750MM Senior Unsecured Notes, Price at Issuance 100, Yielding 3.88%. 4. NRG Energy Inc. (USD) 3.625% 2/15/2031 Reg S (11/17/2020): 1030MM Senior Unsecured Notes, Price at Issuance 100, Yielding 3.63%. 5. MGM Growth Properties Operating Partnership LP (USD) 3.875% 2/15/2029 144A (11/17/2020): 750MM Senior Unsecured Notes, Price at Issuance 100, Yielding 3.88%. 6. NRG Energy Inc. (USD) 3.625% 2/15/2031 144A (11/17/2020): 1030MM Senior Unsecured Notes, Price at Issuance 100, Yielding 3.63%. 7. NRG Energy Inc. (USD) 3.375% 2/15/2029 144A (11/17/2020): 500MM Senior Unsecured Notes, Price at Issuance 100, Yielding 3.38%. 8. Syneos Health, Inc. (USD) 3.625% 1/15/2029 144A (11/18/2020): 600MM Senior Unsecured Notes, Price at Issuance 100, Yielding 3.63%. |
1. Adtalem: $1.4B credit facilities: $400MM revolver; $1B TLB
2. Amentum Holdings LLC: $980MM TL (B1/B) 3. American Public Education Inc.: $195MM credit facilities: $20MM revolver; $175MM TLB 4. Potters Industries LLC: $465MM credit facilities: $75MM revolver; $390MM TL 5. Smartbear: $565MM credit facilities: $50MM revolver (B2/B-); $385MM TL (B2/B-); $130MM TL 6. Smartbear: $565MM credit facilities: $50MM revolver (B2/B-); $385MM TL (B2/B-); $130MM TL 7. Symplr Software Inc.: $930MM TLs: $680MM TL, $250MM TL 8. Potters Industries LLC: $465MM credit facilities: $75MM revolver; $390MM TL 9. American Public Education Inc.: $195MM credit facilities: $20MM revolver; $175MM TLB 10. Amentum Holdings LLC: $980MM TL (B1/B) |
Top Widening Loans | Top Narrowing Loans |
Capita PLC (GBP) RC 08/30/2022 NPC International Inc. (USD) TL L+350 04/20/2024 Deutsche Raststaetten Gruppe GmbH (EUR) TL 10/17/2022 Worldwide Express (USD) TL L+400 02/03/2024 Conduent Business Services LLC (USD) TLA L+175 12/07/2022 |
Quorum Health Corp. (USD) TL EXIT L+825 04/29/2025 Aimbridge Hospitality LLC (USD) TLB L+375 02/01/2026 Team Health Inc. (USD) TLB L+275 02/06/2024 Fortress Merger Sub Inc. (USD) TL L+400 10/21/2023 BioClinica Inc. (USD) TL L+825 10/06/2024 |
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 14 bps (basis points), as of 11/18/2020
- Net negative capital flows into high-yield ETFs & mutual funds
INVESTMENT GRADE BOND RESEARCH
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November 18, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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Boeing Co. 4.875% 5/1/2025 Boeing Co. 2.75% 2/1/2026 Verizon Communications Inc. 2.875% 11/20/2050 Boeing Co. 5.93% 5/1/2060 JPMorgan Chase & Co. VAR% 11/19/2031 Boeing Co. 5.805% 5/1/2050 JPMorgan Chase & Co. VAR% 11/19/2041 Verizon Communications Inc. 2.65% 11/20/2040 Boeing Co. 3.625% 2/1/2031 CVS Health Corp. 5.05% 3/25/2048 |
Industry Returns Tracker | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | New Issues [Continued] |
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1. Alliant Energy Finance LLC (USD) 1.4% 3/15/2026 144A (11/17/2020): 200MM Senior Unsecured Notes, Price at Issuance 99.812, Yielding 1.44%.
2. Entergy Louisiana LLC (USD) 0.62% 11/17/2023 (11/17/2020): 1100MM First Lien Notes, Price at Issuance 99.982, Yielding .63%. 3. Banque Fed du Credit Mutuel (USD) 0.65% 2/27/2024 144A (11/17/2020): 1000MM Senior Preferred Security, Price at Issuance 99.859, Yielding .69%. 4. HSBC Holdings PLC (USD) VAR% 5/24/2027 (11/17/2020): 2000MM Senior Unsecured Notes, Price at Issuance 100. 5. British Airways 2020-1 Class A Pass Through Trust (USD) 4.25% 11/15/2032 144A (11/17/2020): 763MM First Lien Notes, Price at Issuance 100, Yielding 4.25%. 6. American Tower Corp. (USD) 0.6% 1/15/2024 (11/17/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.825, Yielding .66%. 7. Volkswagen Group of America Finance LLC (USD) 1.625% 11/24/2027 Reg S (11/17/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.645, Yielding 1.68%. 8. NRG Energy Inc. (USD) 2.45% 12/2/2027 Reg S (11/17/2020): 900MM Secured Notes, Price at Issuance 99.859, Yielding 2.47%. 9. British Airways 2020-1 Class A Pass Through Trust (USD) 8.375% 11/15/2028 144A (11/17/2020): 241MM Second Lien Notes, Price at Issuance 100, Yielding 8.38%. 10. American Tower Corp. (USD) 1.5% 1/31/2028 (11/17/2020): 650MM Senior Unsecured Notes, Price at Issuance 99.971, Yielding 1.5%. |
Top Widening Loans | Top Narrowing Loans |
Capita PLC (GBP) RC 08/30/2022 NPC International Inc. (USD) TL L+350 04/20/2024 Deutsche Raststaetten Gruppe GmbH (EUR) TL 10/17/2022 Worldwide Express (USD) TL L+400 02/03/2024 Conduent Business Services LLC (USD) TLA L+175 12/07/2022 |
Quorum Health Corp. (USD) TL EXIT L+825 04/29/2025 Aimbridge Hospitality LLC (USD) TLB L+375 02/01/2026 Team Health Inc. (USD) TLB L+275 02/06/2024 Fortress Merger Sub Inc. (USD) TL L+400 10/21/2023 BioClinica Inc. (USD) TL L+825 10/06/2024 |
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 14 bps (basis points), as of 11/18/2020
- Net positive capital flows into high-yield ETFs & mutual funds
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