Grid IconAll Posts Market Summaries

North American Bond Research – October 27, 2020

Posted on October 27, 2020
HIGH YIELD BOND RESEARCH
October 27, 2020
Bond Markets

GLOBAL MARKETS LOWER AGAIN AS COVID CONTINUES TO RAVAGE THE US AND EUROPE. THE LACK OF PROGRESS ON THE STIMULUS AND THE UNCERTAINTY OF THE US ELECTION IS ADDING TO MARKET VOLATILITY. 10 Year Treasury notes were down 0.7 bps. S&P -0.80%, Dow -0.30%, NASDAQ +0.64%.
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 44.2 MILLION+ CASES AND 1.17 MILLION DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 9 MILLION+ CASES AND 232000+ 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
+   T-Mobile USA Inc. 3.3% 2/15/2051 144A +0.6%
  T-Mobile USA Inc. 3% 2/15/2041 144A +0.3%
  Unisys Corp. 6.875% 11/1/2027 144A +0.5%
  Staples Inc. 7.5% 4/15/2026 144A +0.2%
  Providence Service Corp. 5.875% 11/15/2025 144A +0.1%
–   Advantage Sales & Marketing Inc. 6.5% 11/15/2028 144A -1.1%
  Prime Healthcare Services 7.25% 11/1/2025 144A -0.1%
  Sprint Nextel Corp. 7.875% 9/15/2023 -0.0%
  General Motors Co. 5.2% 4/1/2045 -0.0%
  Nabors Industries LTD 7.5% 1/15/2028 144A -1.0%
Cable One Inc.   4% 11/15/2030 144A
Broadcom LTD   3.459% 9/15/2026
Vale Overseas LTD   3.75% 7/8/2030
Diamond Sports Group, LLC   5.375% 8/15/2026 144A
HCA Inc.   3.5% 9/1/2030
Occidental Petroleum Corp.   5.875% 9/1/2025
Pacific Gas & Electric Co.   4.55% 7/1/2030
Chubb INA Hldgs Inc.   1.375% 9/15/2030
Sprint Nextel Corp.   7.875% 9/15/2023
General Motors Co.   5.2% 4/1/2045
Industry Returns Tracker
Industry Past Day Past Week Past Month Past Quarter YTD Past Year
Agriculture, Forestry, Fishing -0.11% -0.01% 0.98% 1.04% 5.71% 7.49%
Mining -0.09% 0.39% 76.60% 29.17% -9.62% -6.05%
Construction -0.04% -0.08% 1.81% 3.66% 6.86% 8.03%
Manufacturing -0.06% 0.02% 2.00% 2.51% 3.53% 6.64%
Transportion, Communication, Electric/Gas -0.03% -0.08% 3.29% 3.01% 4.10% 5.79%
Wholesale -0.15% -0.14% 0.91% 0.27% 1.49% 3.31%
Retail -0.08% -0.11% 2.12% 4.95% 2.79% 4.73%
Finance, Insurance, Real-Estate -0.03% -0.09% 1.62% 3.12% 2.41% 4.48%
Services -0.09% -0.30% 1.26% 2.89% 3.62% 5.34%
Public Administration 0.02% -0.15% 1.42% 4.76% 8.19% 10.03%
Energy -0.08% 0.08% 67.22% 25.14% -8.52% -4.52%
 
Total returns (non-annualized) by rating, market weighted.

New Issues Forward Calendar
1. Cable One Inc. (USD) 4% 11/15/2030 144A (10/26/2020): 650MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4%.

2. Cable One Inc. (USD) 4% 11/15/2030 Reg S (10/26/2020): 650MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4%.

3. MPH Acquisition Holdings LLC (USD) 5.75% 11/1/2028 Reg S (10/27/2020): 1300MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5.75%.

4. MPH Acquisition Holdings LLC (USD) 5.75% 11/1/2028 144A (10/27/2020): 1300MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5.75%.

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:    Cable One Inc issued 650MM Notes.
Top Widening Loans Top Narrowing Loans
Mattress Firm (USD) TL EXIT 11/21/2022
OVH Groupe (EUR) TLB E+325 11/29/2026
Rover (USD) TLB2 L+350 11/01/2024
Averys SA (EUR) TLB E+825 09/25/2026
Archroma Global Services (USD) TLB2 L+425 07/11/2024
Tacala LLC (USD) TLB L+350 02/05/2027
BioClinica Inc. (USD) TL L+825 10/06/2024
Dubois Chemicals Inc. (USD) TL L+450 09/30/2026
Sandvine Corp. (USD) TL 10/15/2026
Dental Corp. (USD) TL L+375 06/06/2025

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 10/27/2020
  • Net negative capital flows into high-yield ETFs & mutual funds

 

INVESTMENT GRADE BOND RESEARCH
October 27, 2020
Bond Markets

GLOBAL MARKETS LOWER AGAIN AS COVID CONTINUES TO RAVAGE THE US AND EUROPE. THE LACK OF PROGRESS ON THE STIMULUS AND THE UNCERTAINTY OF THE US ELECTION IS ADDING TO MARKET VOLATILITY. 10 Year Treasury notes were down .7 bps. S&P -0.80%, Dow -0.30%, NASDAQ +0.64%.
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 44.2 MILLION+ CASES AND 1.17 MILLION DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 9 MILLION+ CASES AND 232000+ 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
+   AT&T Inc. 3.5% 9/15/2053 144A +1.0%
  Energy Transfer Operating, LP 3.75% 5/15/2030 +0.0%
  Commonspirit Health 3.91% 10/1/2050 +0.0%
  Valero Energy Corp. 3.4% 9/15/2026 +0.2%
  JP Morgan Chase & Co. VAR% 5/13/2031 +0.0%
–   Energy Transfer Operating, LP 5% 5/15/2050 -0.2%
  Morgan Stanley VAR% 4/1/2031 -0.0%
  Anthem Inc. 4.101% 3/1/2028 -0.0%
  Anheuser-Busch Co. Inc. 4.7% 2/1/2036 -0.0%
  Bank of Montreal VAR% 10/5/2028 -0.0%
Energy Transfer Operating, LP   5% 5/15/2050
CVS Health Corp.   4.3% 3/25/2028
General Electric Co.   4.35% 5/1/2050
Energy Transfer Partners LP   6.25% 4/15/2049
Barclays Bank PLC   VAR% 5/16/2029
Sutter Health   3.161% 8/15/2040
Energy Transfer Operating, LP   3.75% 5/15/2030
Morgan Stanley   VAR% 4/1/2031
Commonspirit Health   3.91% 10/1/2050
AT&T Inc.   2.25% 2/1/2032
Industry Returns Tracker
Industry Past Day Past Week Past Month Past Quarter YTD Past Year
Mining 0.23% 0.09% 0.22% -0.41% 5.65% 6.89%
Construction 0.02% 0.28% 0.83% 1.93% 6.08% 7.27%
Manufacturing 0.18% 0.09% 0.23% -0.10% 7.48% 8.47%
Transportion, Communication, Electric/Gas 0.24% 0.11% -0.18% -1.24% 8.43% 9.49%
Wholesale 0.16% 0.17% 0.61% 1.11% 7.85% 9.71%
Retail 0.27% 0.14% 0.35% -1.00% 8.81% 10.26%
Finance, Insurance, Real-Estate 0.17% 0.15% 0.39% 0.43% 6.57% 7.66%
Services 0.11% 0.02% 0.10% 0.13% 6.63% 7.35%
Public Administration 0.26% 0.02% -0.07% 0.42% 5.02% 5.14%
Energy 0.21% 0.01% 0.04% -0.85% 4.44% 6.08%
 
Total returns (non-annualized) by rating, market weighted.

New Issues New Issues [Continued]
1. SLM Corp. (Sallie Mae) (USD) 4.2% 10/29/2025 (10/26/2020): 500MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.2%.

2. Intelligent Packaging LTD Finco Inc. Intelligent Packaging LTD Co.-Issuer LLC (USD) 6% 9/15/2028 (10/26/2020): 100MM Secured Notes, Price at Issuance 101, Yielding 5.84%.

Additional Commentary

NEW ISSUANCE WATCH:  SLM Corp. issued 500 MM in notes.
Top Widening Loans Top Narrowing Loans
Mattress Firm (USD) TL EXIT 11/21/2022
OVH Groupe (EUR) TLB E+325 11/29/2026
Rover (USD) TLB2 L+350 11/01/2024
Averys SA (EUR) TLB E+825 09/25/2026
Archroma Global Services (USD) TLB2 L+425 07/11/2024
Tacala LLC (USD) TLB L+350 02/05/2027
BioClinica Inc. (USD) TL L+825 10/06/2024
Dubois Chemicals Inc. (USD) TL L+450 09/30/2026
Sandvine Corp. (USD) TL 10/15/2026
Dental Corp. (USD) TL L+375 06/06/2025

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 10/27/2020
  • Net positive capital flows into high-yield ETFs & mutual funds

Copyright 2020 Advantage Data Inc. All Rights Reserved. http://www.advantagedata.com

Information in this document should not be regarded as an offer to sell or solicitation of an offer to buy bonds or any financial instruments referred to herein. All information provided in this document is believed to be accurate. However, Advantage Data and its sources make no warranties, either express or implied, as to any matter whatsoever, including but not limited to warranties of merchantability or fitness for a particular purpose. Opinions in this document are subject to change without notice. Electronic redistribution, photocopying and any other electronic or mechanical reproduction is strictly prohibited without prior written permission from Advantage Data Inc.

 


Disclaimer: The information on this blog site is for informational purposes only.  Advantage Data makes no representations as to the accuracy, completeness, suitability, or validity, of any information. Advantage Data will not be liable for any errors, omissions, or any losses, injuries, or damages arising from its display or use. All information is provided AS-IS with no warranties and confers no rights. Information is not and should not be considered professional financial investment advice. In all events, Advantage Data is not a broker-dealer, shall not operate as a broker or a dealer, is not holding itself out as a broker or dealer and is not engaged in the business of buying or selling securities or otherwise required to register with the National Association of Securities Dealers.


Are you using AdvantageData?

AdvantageData is your fixed income solution for pricing, analytics, reports, and insight on approximately:

  • 500,000+ U.S. and international corporate bonds
  • Over 300,000+ BDC fair value assessments dating back to 2000
  • Over 22,000+ syndicated loans
  • Over 100 equity markets worldwide
  • One platform 15 products and services from debt to loans to mid-market
  • Used by top buy and sell-side firms worldwide

Share

facebook share icon twitter share icon linkedin share icon
Ready to get Started? Free Trial