
North American Bond Research – October 30, 2020
Posted on October 30, 2020
HIGH YIELD BOND RESEARCH
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October 30, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | Forward Calendar |
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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) |
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 |
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
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October 30, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | New Issues [Continued] |
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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%. |
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 |
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
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