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Market Summaries
North American Bond Research – October 13, 2020
Posted on October 13, 2020|
HIGH YIELD BOND RESEARCH
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October 13, 2020
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Bond Markets
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 38 MILLION+ CASES AND 1.08 MILLION DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 7.95 MILLION+ CASES AND 219000+ 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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Vale Overseas LTD 3.75% 7/8/2030 Mallinckrodt Intl. Finance SA 5.75% 8/1/2022 144A Vale Overseas LTD 6.25% 8/10/2026 Pacific Gas & Electric Co. 4.95% 7/1/2050 MGM Resorts Intl 4.75% 10/15/2028 Cinemark Inc. 5.125% 12/15/2022 BED Bath & Beyond Inc. 5.165% 8/1/2044 Petrobras Global Finance BV 7.375% 1/17/2027 Ford Motor Co. 9% 4/22/2025 General Motors Co. 4.875% 10/2/2023 |
| Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| New Issues | Forward Calendar |
|---|---|
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(None Current 10/13/2020)
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1. Wheelabrator Technologies Inc.: $1.3965B TLB
2. Fly Leasing LTD: $180MM TLB (Ba3/BBB-) 3. Maravai Lifesciences: $750MM credit facilities: $150MM revolver; $600MM TLB 4. Mega Broadband Investments Holdings LLC: $725MM credit facilities: $75MM revolver; $650MM TLB 5. Pae Holding Corp.: $890MM TLB (B2/B) 6. Quirch Foods LLC: $675MM credit facilities: $475MM TLB; $200MM revolver 7. Vander-Bend Manufacturing Inc.: $197.5MM credit facilities: $20MM revolver; $177.5MM TLB 8. Wheelabrator Technologies Inc.: $1.3965B TLB 9. Array Technologies: $575MM TLB (B1/B+) 10. Fly Leasing LTD: $180MM TLB (Ba3/BBB-) |
Additional Commentary
NEW ISSUANCE WATCH: No New Issues.
| Top Widening Loans | Top Narrowing Loans |
| Unifrax Corp. (USD) TL2 L+850 12/14/2026 Affinity Gaming LLC (USD) TL L+825 02/01/2025 Oxea GmbH (USD) TL L+350 09/29/2024 One Call Medical Inc. (USD) TL L+400 11/27/2020 Conduent Business Services LLC (USD) TLA L+175 12/07/2022 |
Akorn Inc. (USD) TL L+1250 04/16/2021 Owens & Minor Inc. (USD) TLA2 L+350 07/27/2022 Tacala LLC (USD) TLB L+350 02/05/2027 CSM Bakery (USD) TL L+1000 02/04/2022 MMM Holdings Inc. (USD) RC 11/01/2024 |
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 10/13/2020
- Net negative capital flows into high-yield ETFs & mutual funds
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INVESTMENT GRADE BOND RESEARCH
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October 13, 2020
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Bond Markets
GLOBAL MARKETS UP AS TRUMP AND THE DEMOCRATS GET MUCH CLOSER TO A DEAL. PRESIDENT TRUMP PROPOSED A $1.8 TRILLION DOLLAR PACKAGE TODAY. 10 Year Treasury notes were up .1 bps. S&P +0.88%, Dow +0.57%, NASDAQ +1.39%.
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 38 MILLION+ CASES AND 1.08 MILLION DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 7.95 MILLION+ CASES AND 219000+ 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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General Electric Co. 4.35% 5/1/2050 Mizuho Financial Group Inc. 2.591% 5/25/2031 CVS Health Corp. 5.05% 3/25/2048 Boeing Co. 5.805% 5/1/2050 Anheuser-Busch Inbev Worldwide Inc. 4.9% 2/1/2046 Suzano Austria GmbH 6% 1/15/2029 Vale Overseas LTD 3.75% 7/8/2030 Omega Healthcare Investors Inc. 3.375% 2/1/2031 HSBC Hldg PLC VAR% 6/4/2026 Gilead Sciences Inc. 2.6% 10/1/2040 |
| Industry Returns Tracker | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| New Issues | New Issues [Continued] |
|---|---|
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(None Current 10/13/2020)
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Additional Commentary
NEW ISSUANCE WATCH: No new issues.
| Top Widening Loans | Top Narrowing Loans |
| Unifrax Corp. (USD) TL2 L+850 12/14/2026 Affinity Gaming LLC (USD) TL L+825 02/01/2025 Oxea GmbH (USD) TL L+350 09/29/2024 One Call Medical Inc. (USD) TL L+400 11/27/2020 Conduent Business Services LLC (USD) TLA L+175 12/07/2022 |
Akorn Inc. (USD) TL L+1250 04/16/2021 Owens & Minor Inc. (USD) TLA2 L+350 07/27/2022 Tacala LLC (USD) TLB L+350 02/05/2027 CSM Bakery (USD) TL L+1000 02/04/2022 MMM Holdings Inc. (USD) RC 11/01/2024 |
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 10/13/2020
- Net positive capital flows into high-yield ETFs & mutual funds
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