GLOBAL MARKETS SOARED TODAY AS PFIZER STATED THAT THEIR COVID-19 VACCINE WAS 90% EFFECTIVE. OIL JUMPED OVER 8 % TODAY ON THAT NEWS. 10 Year Treasury notes were up 11.9 bps. S&P +2.95%, Dow +1.17%, NASDAQ -1.53%.
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Market Summaries
North American Bond Research – November 9, 2020
Posted on November 9, 2020|
HIGH YIELD BOND RESEARCH
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November 9, 2020
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Bond Markets
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 51.2 MILLION+ CASES AND 1.27 MILLION DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 10.4 MILLION+ CASES AND 244000+ 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 | ||||||||||||||||||||||||||||||
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Petrobras Global Finance BV 6.85% 6/5/2115 iHeartCommunications Inc. 8.375% 5/1/2027 Intelsat Luxembourg SA 8.125% 6/1/2023 Teva Pharmaceutical Industries LTD 3.15% 10/1/2026 Cinemark Inc. 4.875% 6/1/2023 Ford Motor Co. 8.5% 4/21/2023 General Motors Co. 5.2% 4/1/2045 Pacific Gas & Electric Co. 4.55% 7/1/2030 Cheniere Corpus Christi Hldgs LLC 5.875% 3/31/2025 WPX Energy Inc. 5.75% 6/1/2026 |
| Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| New Issues | Forward Calendar |
|---|---|
| 1. Four Lakes RE LTD (USD) FLT% 1/5/2024 (11/09/2020): 100MM Unsecured Notes, Price at Issuance 100.
2. Four Lakes RE LTD (USD) FLT% 1/5/2024 (11/09/2020): 75MM Unsecured Notes, Price at Issuance 100. |
1. American Public Education Inc.: $195MM credit facilities: $20MM revolver; $175MM TLB
2. Amentum Holdings LLC: $980MM TL (B1/B) 3. Adtalem: $1.4B credit facilities: $400MM revolver; $1B TLB 4. Greystone Select Financial: $400MM TLB (Ba2/B+/BB-) 5. Amentum Holdings LLC: $980MM TL (B1/B) 6. Adtalem: $1.4B credit facilities: $400MM revolver; $1B TLB 7. J.D. Power: $100MM incremental TL 8. Motorcity: $275MM TLB (Ba3/BB) 9. Les Schwab Tire Centers: $1.575MM TLB (B2/B) 10. Greystone Select Financial: $400MM TLB (Ba2/B+/BB-) |
Additional Commentary
NEW ISSUANCE WATCH: Four Lakes RE LTD issued 175 MM in Notes.
| Top Widening Loans | Top Narrowing Loans |
| Playa Resorts Holding BV (USD) TLB L+325 04/27/2024 Philadelphia Energy Solutions (USD) TLA L+625 12/31/2022 Melissa & Doug LLC (USD) TL L+350 06/19/2024 Eagle 4 Limited (USD) TL L+775 06/14/2027 NPC International Inc. (USD) TL L+350 04/20/2024 |
CPV Shore LLC (USD) TLB L+375 12/27/2025 Kindercare Education LLC (USD) TL L+825 08/16/2025 Ball Corp. (USD) TLA L+150 03/21/2024 Stubhub (USD) TLB L+350 02/13/2027 Granite Acquisition Inc (USD) TLB L+350 12/17/2021 |
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 14 bps (basis points), as of 11/09/2020
- Net negative capital flows into high-yield ETFs & mutual funds
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INVESTMENT GRADE BOND RESEARCH
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November 9, 2020
|
Bond Markets
GLOBAL MARKETS SOARED TODAY AS PFIZER STATED THAT THEIR COVID-19 VACCINE WAS 90% EFFECTIVE. OIL JUMPED OVER 8 % TODAY ON THAT NEWS. 10 Year Treasury notes were up 11.9 bps. S&P +2.95%, Dow +1.17%, NASDAQ -1.53%.
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 51.2 MILLION+ CASES AND 1.27 MILLION DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 10.4 MILLION+ CASES AND 244000+ 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 | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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Boeing Co. 4.875% 5/1/2025 Oracle Corp. 3.85% 4/1/2060 Gilead Sciences Inc. 2.8% 10/1/2050 Boeing Co. 5.805% 5/1/2050 General Electric Co. 4.35% 5/1/2050 CVS Health Corp. 5.05% 3/25/2048 SYSCO Corp. 6.6% 4/1/2050 Bank of America Corp. VAR% 10/24/2031 Waste Management Inc. 1.5% 3/15/2031 Intel Corp. 4.75% 3/25/2050 |
| Industry Returns Tracker | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| New Issues | New Issues [Continued] |
|---|---|
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(None Current 11/09/2020)
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Additional Commentary
NEW ISSUANCE WATCH: No New Issues.
| Top Widening Loans | Top Narrowing Loans |
| Playa Resorts Holding BV (USD) TLB L+325 04/27/2024 Philadelphia Energy Solutions (USD) TLA L+625 12/31/2022 Melissa & Doug LLC (USD) TL L+350 06/19/2024 Eagle 4 Limited (USD) TL L+775 06/14/2027 NPC International Inc. (USD) TL L+350 04/20/2024 |
CPV Shore LLC (USD) TLB L+375 12/27/2025 Kindercare Education LLC (USD) TL L+825 08/16/2025 Ball Corp. (USD) TLA L+150 03/21/2024 Stubhub (USD) TLB L+350 02/13/2027 Granite Acquisition Inc (USD) TLB L+350 12/17/2021 |
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 14 bps (basis points), as of 11/09/2020
- Net positive capital flows into high-yield ETFs & mutual funds
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