
North American Bond Research – November 22, 2019
Posted on November 22, 2019
HIGH YIELD BOND RESEARCH
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November 22, 2019
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Bond Markets
Key Gainers and Losers | Volume Leaders | ||||||||||||
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Petrobras Global Finance BV 6.85% 6/5/2115 Intelsat Luxembourg SA 8.125% 6/1/2023 |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | Forward Calendar |
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1. Centene Corp. (USD) 4.625% 12/15/2029 144A (11/21/2019): 3500MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.63%.
2. Centene Corp. (USD) 4.75% 1/15/2025 144A (11/21/2019): 1000MM Senior Unsecured Notes, Price at Issuance 102.875, Yielding 4.12%. 3. Vici Properties LLC (USD) 4.625% 12/1/2029 Reg S (11/21/2019): 1000MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.63%. |
1. Qmax Financial Holdings Inc.: $225MM, Expected 4th Quarter 2019
2. DDM Holding AG: ¬100MM, Expected Q4 2019 3. Presidio Inc.: $1.775B high yield bonds, Expected 4th Quarter 2019 |
Additional Commentary
Wolverine Ecrow The most recent data showed a money flowed out of ETF/mutual funds for the week ended 11/15/2019, with a net outflow of $240 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) Road King Infrastructure LTD (5Y Sen USD MR14) SuperValu Inc. (5Y Sen USD MR14) |
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 35 bp (basis points), as of 11/22/19
- Net negative capital flows into high-yield ETFs & mutual funds
INVESTMENT GRADE BOND RESEARCH
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November 22, 2019
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Bond Markets
Key Gainers and Losers | Volume Leaders | ||||||||||||
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Intelsat Luxembourg SA 8.125% 6/1/2023 Quad Graphics Inc. 7% 5/1/2022 L Brands Inc. 6.875% 11/1/2035 |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | Forward Calendar |
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1. Centene Corp. (USD) 4.625% 12/15/2029 144A (11/21/2019): 3500MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.63%.
2. Centene Corp. (USD) 4.25% 12/15/2027 144A (11/21/2019): 2500MM Senior Unsecured Notes, Price at Issuance 99.16, Yielding 4.37%. 3. Vici Properties LLC (USD) 4.625% 12/1/2029 144A (11/21/2019): 1000MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.63%. |
1. Calpine Corp.: $1.4B bonds, Expected Q4 2019
2. Diamondback Energy Inc.: High-yield notes, Expected Q4 2019 |
Additional Commentary
Wolverine Ecrow The most recent data showed a money flowed out of ETF/mutual funds for the week ended 11/15/2019, with a net outflow of $240 Million.
Top Widening Credit Default Swaps (CDS) | Top Narrowing Credit Default Swaps (CDS) |
Rite Aid Corp. (5Y Sen USD XR14) Weatherford International LTD (5Y Sen USD MR14) |
Road King Infrastructure LTD (5Y Sen USD MR14) 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 35 bp (basis points), as of 11/22/19
- Net negative capital flows into high-yield ETFs & mutual funds
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