
North American Bond Research – October 20, 2020
Posted on October 20, 2020
HIGH YIELD BOND RESEARCH
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October 20, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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T-Mobile USA Inc. 3.75% 4/15/2027 144A T-Mobile USA Inc. 3.875% 4/15/2030 144A Diamondback Energy Inc. 3.5% 12/1/2029 Occidental Petroleum Corp. 3.4% 4/15/2026 Millicom Intl. Cellular SA 4.5% 4/27/2031 Reg S Broadcom LTD 4.75% 4/15/2029 Broadcom LTD 4.11% 9/15/2028 Vale Overseas LTD 6.25% 8/10/2026 Centene Corp. 3% 10/15/2030 T-Mobile USA Inc. 3.5% 4/15/2025 144A |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | Forward Calendar |
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1. Starwood Property Trust Inc. (USD) 5.5% 11/1/2023 144A (10/19/2020): 300MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5.5%.
2. Chobani LLC (USD) 4.625% 11/15/2028 144A (10/19/2020): 425MM Secured Notes, Price at Issuance 100, Yielding 4.63%. 3. Millicom Intl. Cellular SA (USD) 4.5% 4/27/2031 144A (10/19/2020): 500MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.5%. 4. Starwood Property Trust Inc. (USD) 5.5% 11/1/2023 Reg S (10/19/2020): 300MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5.5%. 5. Chobani LLC (USD) 4.625% 11/15/2028 Reg S (10/19/2020): 425MM Secured Notes, Price at Issuance 100, Yielding 4.63%. 6. Millicom Intl. Cellular SA (USD) 4.5% 4/27/2031 Reg S (10/19/2020): 500MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.5%. |
1. Vander-Bend Manufacturing Inc.: $197.5MM credit facilities: $20MM revolver; $177.5MM TLB
2. J.D. Power: $100MM incremental TL 3. E2 Open: $600MM credit facilities: $75MM revolver; $525MM TLB 4. CNT Holdings I Corp.: $1.405B credit facilities: $110MM revolver (B2/B); $980MM TLB (B2/B); $315MM TL (Caa2/CCC+) 5. Weber-Stephen Products LLC: $1.5B credit facilities: $300MM revolver; $1.2MM TLB 6. Virtusa Corp.: $725MM credit facilities: $125MM revolver; $600MM TL 7. Veregy: $342.5MM credit facilities: $42.5MM revolver; $250MM TL; $50MM DD TL 8. Adevinta: $500MM TLB (BB-/BB+) 9. E2 Open: $600MM credit facilities: $75MM revolver; $525MM TLB 10. Quirch Foods LLC: $675MM credit facilities: $475MM TLB; $200MM revolver |
Top Widening Loans | Top Narrowing Loans |
Compass IV LTD (EUR) TL E+800 05/09/2026 EG Group (USD) TL L+800 03/23/2026 Areas SA (EUR) TLB1 E+475 07/01/2026 Promotora de Informaciones SA (EUR) TL3 E+400 12/31/2022 Emerald Performance Materials (USD) TL L+400 08/12/2025 |
Tacala LLC (USD) TLB L+350 02/05/2027 Akorn Inc. (USD) TL L+1250 04/16/2021 Casper Bidco (EUR) TL E+850 07/30/2027 Kirk Beauty Zero GmbH (EUR) RC E+375 12/26/2021 Distributed Power Inc. (USD) TLB L+325 11/02/2025 |
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 12 bps (basis points), as of 10/20/2020
- Net negative capital flows into high-yield ETFs & mutual funds
INVESTMENT GRADE BOND RESEARCH
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October 20, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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Bank of America Corp. VAR% 10/24/2026 Bank of America Corp. VAR% 10/24/2051 General Electric Co. 4.35% 5/1/2050 Bank of America Corp. VAR% 10/24/2031 Cimarex Energy Co. 4.375% 3/15/2029 United Airlines Inc. 3.45% 6/1/2029 Bank of America Corp. VAR% 10/24/2024 Integris Baptist Medical Center Inc. 3.875% 8/15/2050 Philip Morris Intl Inc. 4.125% 5/17/2021 Boeing Co. 5.805% 5/1/2050 |
Industry Returns Tracker | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | New Issues [Continued] |
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1. Ross Stores Inc. (USD) 1.875% 4/15/2031 (10/19/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.631, Yielding 1.91%.
2. Ross Stores Inc. (USD) 0.875% 4/15/2026 (10/19/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.436, Yielding .98%. 3. Penske Truck Leasing (USD) 1.2% 11/15/2025 144A (10/19/2020): 750MM Senior Unsecured Notes, Price at Issuance 99.839, Yielding 1.23%. 4. American Honda Finance Corp. (USD) 0.4% 10/21/2022 (10/19/2020): 550MM Senior Unsecured Notes, Price at Issuance 99.97, Yielding .42%. 5. American Honda Finance Corp. (USD) FLT% 1/21/2022 (10/19/2020): 450MM Senior Unsecured Notes, Price at Issuance 100. 6. WMG Acquisition Corp. (USD) 3% 2/15/2031 (10/19/2020): 250MM Secured Notes, Price at Issuance 97.501, Yielding 3.29%. 7. T-Mobile USA Inc. (USD) 3.6% 11/15/2060 144A (10/19/2020): 1000MM Secured Notes, Price at Issuance 99.745, Yielding 3.61%. 8. Canadian Imperial Bank of Commerce (USD) 0.95% 10/23/2025 (10/19/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.961, Yielding .96%. 9. T-Mobile USA Inc. (USD) 2.25% 11/15/2031 144A (10/19/2020): 1000MM Secured Notes, Price at Issuance 99.99, Yielding 2.25%. 10. Herbie RE LTD. (USD) FLT% 1/28/2025 (10/19/2020): 100MM Unsecured Notes, Price at Issuance 100. |
Top Widening Loans | Top Narrowing Loans |
Compass IV LTD (EUR) TL E+800 05/09/2026 EG Group (USD) TL L+800 03/23/2026 Areas SA (EUR) TLB1 E+475 07/01/2026 Promotora de Informaciones SA (EUR) TL3 E+400 12/31/2022 Emerald Performance Materials (USD) TL L+400 08/12/2025 |
Tacala LLC (USD) TLB L+350 02/05/2027 Akorn Inc. (USD) TL L+1250 04/16/2021 Casper Bidco (EUR) TL E+850 07/30/2027 Kirk Beauty Zero GmbH (EUR) RC E+375 12/26/2021 Distributed Power Inc. (USD) TLB L+325 11/02/2025 |
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 12 bps (basis points), as of 10/20/2020
- Net positive capital flows into high-yield ETFs & mutual funds
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