GLOBAL MARKETS END THEIR WORST WEEK SINCE MARCH AS COVID-19 VIRUS TOP 90,000 CASES A DAY. HUGE BOUNCE BACK IN GDP GROWTH COUPLED WITH STRONG SEPTEMBER CONSUMER FIGURES GIVE SOME HOPE TO MARKETS. 10 Year Treasury notes were up 5.4 bps. S&P -0.59%, Dow -1.21%, NASDAQ -2.45%.
All Posts
Market Summaries
North American Bond Research – October 30, 2020
Posted on October 30, 2020|
HIGH YIELD BOND RESEARCH
|
October 30, 2020
|
Bond Markets
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 45.8 MILLION+ CASES AND 1.19 MILLION DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 9.3 MILLION+ CASES AND 235000+ 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 | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Vale Overseas LTD 3.75% 7/8/2030 MGM Resorts Intl 4.75% 10/15/2028 Pacific Gas & Electric Co. 4.55% 7/1/2030 Corrections Corp. of America 5% 10/15/2022 Ford Motor Co. 8.5% 4/21/2023 Cenovus Energy Inc. 5.375% 7/15/2025 Petrobras Global Finance BV 7.375% 1/17/2027 Pacific Gas & Electric Co. 4.95% 7/1/2050 Sprint Capital Corp. 8.75% 3/15/2032 Occidental Petroleum Corp. 6.45% 9/15/2036 |
| Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Issues | Forward Calendar |
|---|---|
| 1. CCM Merger Inc. (USD) 6.375% 5/1/2026 Reg S (10/29/2020): 275MM Senior Unsecured Notes, Price at Issuance 100, Yielding 6.38%.
2. Finance of America Funding LLC (USD) 7.875% 11/15/2025 144A (10/29/2020): 350MM Senior Unsecured Notes, Price at Issuance 99, Yielding 8.12%. 3. CCM Merger Inc. (USD) 6.375% 5/1/2026 144A (10/29/2020): 275MM Senior Unsecured Notes, Price at Issuance 100, Yielding 6.38%. 4. Finance of America Funding LLC (USD) 7.875% 11/15/2025 Reg S (10/29/2020): 350MM Senior Unsecured Notes, Price at Issuance 99, Yielding 8.12%. |
1. PetSmart: $1150MM senior unsecured notes (Caa1/CCC+)
2. Aston Martin: $840MM senior secured notes (Caa2/CCC) 3. PetSmart: $1200MM senior secured notes (B1/B) 4. LABL Inter: $500MM senior PIK toggle (/B-) 5. Sizzling Platter: $325MM senior secured notes (B3/) 6. NRG Energy Inc.: $2361MM secured and unsecured notes 7. Empire Resorts Inc.: $475MM senior secured notes (B+/B+) 8. Smyrna Rady: $515MM senior secured notes (B1/) 9. Franchise Group: $650MM senior secured notes (B1/B+) 10. Aston Martin: senior secured notes (Caa2/CCC) |
Additional Commentary
NEW ISSUANCE WATCH: CCM Merger Inc. Inc issued 275 MM Notes.
| Top Widening Loans | Top Narrowing Loans |
| Tritech Software Systems (USD) TL2 L+750 08/31/2026 JC Penney Co. Inc. (USD) DD L+1175 11/15/2020 Mattress Firm (USD) TL EXIT 11/21/2022 Samsonite IP Holdings SARL (USD) TLA L+150 04/19/2023 Assystem (EUR) TLB E+425 09/28/2024 |
Distributed Power Inc. (USD) TLB L+325 11/02/2025 Asmodee (EUR) TL 10/22/2026 MFG / MRH (GBP) TL2 06/21/2026 Academy LTD (USD) TLB L+400 07/05/2022 Waterbridge Operating LLC (USD) TLB L+575 06/18/2026 |
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 10/30/2020
- Net negative capital flows into high-yield ETFs & mutual funds
|
INVESTMENT GRADE BOND RESEARCH
|
October 30, 2020
|
Bond Markets
US MARKETS BOUNCED BACK AMID STRONG REBOUND IN US GDP NUMBERS WHILE EUROPE’S MARKETS WERE UNCHANGED AMID COVID SURGE. 10 Year Treasury notes were up 5.4 bps. S&P +1.19%, Dow +0.52%, NASDAQ +1.64%.
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 45.8 MILLION+ CASES AND 1.19 MILLION DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 9.3 MILLION+ CASES AND 235000+ 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 | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Boeing Co. 3.625% 2/1/2031 FirstEnergy Corp. 3.9% 7/15/2027 Boeing Co. 5.805% 5/1/2050 FirstEnergy Corp. 3.4% 3/1/2050 Bank of America Corp. VAR% 10/24/2031 FirstEnergy Corp. 4.85% 7/15/2047 Boeing Co. 5.15% 5/1/2030 Procter & Gamble Co. 1.2% 10/29/2030 Boeing Co. 3.25% 2/1/2028 Tractor Supply Co. 1.75% 11/1/2030 |
| Industry Returns Tracker | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Issues | New Issues [Continued] |
|---|---|
| 1. Boeing Co. (USD) 2.75% 2/1/2026 (10/29/2020): 1400MM Senior Unsecured Notes, Price at Issuance 99.92, Yielding 2.77%.
2. Stanley Black & Decker Inc. (USD) 2.75% 11/15/2050 (10/29/2020): 750MM Senior Unsecured Notes, Price at Issuance 99.735, Yielding 2.76%. 3. Baxter International Inc. (USD) 1.73% 4/1/2031 144A (10/29/2020): 650MM Senior Unsecured Notes, Price at Issuance 99.906, Yielding 1.74%. 4. Philip Morris Intl. Inc. (USD) 0.875% 5/1/2026 (10/29/2020): 750MM Senior Unsecured Notes, Price at Issuance 99.631, Yielding .94%. 5. Philip Morris Intl. Inc. (USD) 1.75% 11/1/2030 (10/29/2020): 750MM Senior Unsecured Notes, Price at Issuance 98.992, Yielding 1.86%. 6. Boeing Co. (USD) 1.95% 2/1/2024 (10/29/2020): 1000MM Senior Unsecured Notes, Price at Issuance 99.864, Yielding 1.99%. 7. Boeing Co. (USD) 3.25% 2/1/2028 (10/29/2020): 1100MM Senior Unsecured Notes, Price at Issuance 99.978, Yielding 3.25%. 8. Boeing Co. (USD) 3.625% 2/1/2031 (10/29/2020): 1400MM Senior Unsecured Notes, Price at Issuance 99.936, Yielding 3.63%. 9. Baxter International Inc. (USD) 1.73% 4/1/2031 Reg S (10/29/2020): 650MM Senior Unsecured Notes, Price at Issuance 99.906, Yielding 1.74%. |
Additional Commentary
NEW ISSUANCE WATCH: Boeing Co. issued 4900 MM in notes.
| Top Widening Loans | Top Narrowing Loans |
| Tritech Software Systems (USD) TL2 L+750 08/31/2026 JC Penney Co. Inc. (USD) DD L+1175 11/15/2020 Mattress Firm (USD) TL EXIT 11/21/2022 Samsonite IP Holdings SARL (USD) TLA L+150 04/19/2023 Assystem (EUR) TLB E+425 09/28/2024 |
Distributed Power Inc. (USD) TLB L+325 11/02/2025 Asmodee (EUR) TL 10/22/2026 MFG / MRH (GBP) TL2 06/21/2026 Academy LTD (USD) TLB L+400 07/05/2022 Waterbridge Operating LLC (USD) TLB L+575 06/18/2026 |
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 10/30/2020
- 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
