GLOBAL MARKETS LOWER AS THE COVID-19 VIRUS SURGES IN BOTH THE US AND EUROPE. CHANCES OF A STIMULUS PACKAGE PASSING BEFORE THE ELECTION IS QUICKLY FADING. 10 Year Treasury notes were down 4 bps. S&P -1.86%, Dow -2.29%, NASDAQ -1.64%.
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Market Summaries
North American Bond Research – October 26, 2020
Posted on October 26, 2020|
HIGH YIELD BOND RESEARCH
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October 26, 2020
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Bond Markets
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 43.7 MILLION+ CASES AND 1.16 MILLION DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 8.9 MILLION+ CASES AND 231000+ 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 Bioceanico Sovereign Certificate LTD 0% 6/5/2034 Reg S Cenovus Energy Inc. 5.375% 7/15/2025 Occidental Petroleum Corp. 2.9% 8/15/2024 Occidental Petroleum Corp. 5.875% 9/1/2025 Gulfport Energy Corp. 6.625% 5/1/2023 General Motors Financial Co. Inc. 5.75% PERP Cenovus Energy Inc. 3% 8/15/2022 Micron Technology Inc. 4.663% 2/15/2030 Olin Corp. 5% 2/1/2030 |
| Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| New Issues | Forward Calendar |
|---|---|
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(None Current 10/26/2020)
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1. LABL Inter: $500MM senior PIK toggle (/B-)
2. Highland Holdings: $500MM senior secured PIK (/BB+) 3. Advantage Sales: $500MM senior secured notes (B2/B) 4. Sizzling Platter: $325MM senior secured notes (B3/) 5. Prime Healthcare: $610MM senior secured notes (B2/B-) 6. Akumin: $375MM senior secured notes (B3/B-) 7. NRG Energy Inc.: $2361MM secured and unsecured notes 8. Empire Resorts Inc.: $475MM senior secured notes (B+/B+) 9. Weber-Stephen Products LLC: $1.5B credit facilities: $300MM revolver; $1.2MM TLB 10. J.D. Power: $100MM incremental TL |
Additional Commentary
NEW ISSUANCE WATCH: No New Issues.
| Top Widening Loans | Top Narrowing Loans |
| SSH Group Hldg Inc. (USD) TL2 L+825 07/30/2026 Mattress Firm (USD) TL EXIT 11/21/2022 Buzz Merger Sub LTD (USD) TLB L+275 01/29/2027 Samsonite IP Holdings SARL (USD) TLA L+150 04/19/2023 EG Group (EUR) TL E+775 03/23/2026 |
Rayonier AM Products Inc. (USD) TLA L+375 11/17/2022 Tacala LLC (USD) TLB L+350 02/05/2027 JC Penney Co. Inc. (USD) DD L+1175 11/15/2020 Wittur (EUR) TL E+850 09/19/2027 Concordia International (EUR) TL E+525 09/06/2024 |
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 13 bps (basis points), as of 10/26/2020
- Net negative capital flows into high-yield ETFs & mutual funds
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INVESTMENT GRADE BOND RESEARCH
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October 26, 2020
|
Bond Markets
GLOBAL MARKETS LOWER AS THE COVID-19 VIRUS SURGES IN BOTH THE US AND EUROPE. CHANCES OF A STIMULUS PACKAGE PASSING BEFORE THE ELECTION IS QUICKLY FADING. 10 Year Treasury notes were down 4 bps. S&P -1.86%, Dow -2.29%, NASDAQ -1.64%.
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 43.7 MILLION+ CASES AND 1.16 MILLION DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 8.9 MILLION+ CASES AND 231000+ 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. 5.805% 5/1/2050 Bank of America Corp. VAR% 10/24/2051 Priceline Group Inc. 3.6% 6/1/2026 General Motors Co. 6.8% 10/1/2027 Gilead Sciences Inc. 4.8% 4/1/2044 General Electric Co. FLT% PERP (1) General Electric Co. 4.35% 5/1/2050 Lowe’s Companies Inc. 3% 10/15/2050 GE Capital Intl. Funding Co. 4.418% 11/15/2035 Bank of America Corp. VAR% 10/24/2031 |
| Industry Returns Tracker | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| New Issues | New Issues [Continued] |
|---|---|
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(None Current 10/26/2020)
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Additional Commentary
NEW ISSUANCE WATCH: No New Issues.
| Top Widening Loans | Top Narrowing Loans |
| SSH Group Hldg Inc. (USD) TL2 L+825 07/30/2026 Mattress Firm (USD) TL EXIT 11/21/2022 Buzz Merger Sub LTD (USD) TLB L+275 01/29/2027 Samsonite IP Holdings SARL (USD) TLA L+150 04/19/2023 EG Group (EUR) TL E+775 03/23/2026 |
Rayonier AM Products Inc. (USD) TLA L+375 11/17/2022 Tacala LLC (USD) TLB L+350 02/05/2027 JC Penney Co. Inc. (USD) DD L+1175 11/15/2020 Wittur (EUR) TL E+850 09/19/2027 Concordia International (EUR) TL E+525 09/06/2024 |
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 13 bps (basis points), as of 10/26/2020
- Net positive capital flows into high-yield ETFs & mutual funds
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