GLOBAL MARKETS WERE WAY UP UNTIL PRESIDENT TRUMP DECIDED TO PULL OUT OF THE STIMULUS NEGOTIATIONS UNTIL AFTER THE ELECTION. US MARKETS FELL OVER 1%. 10 Year Treasury notes were down 2.2 bps. S&P -1.40 %, Dow -1.34%, NASDAQ -1.57%.
All Posts
Market Summaries
North American Bond Research – October 6, 2020
Posted on October 6, 2020|
HIGH YIELD BOND RESEARCH
|
October 6, 2020
|
Bond Markets
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 36 MILLION+ CASES AND 1.053 MILLION DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 7.7 MILLION+ CASES AND 216000+ 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 | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Pacific Gas & Electric Co. 4.95% 7/1/2050 T-Mobile USA Inc. 3.875% 4/15/2030 144A Vale Overseas LTD 3.75% 7/8/2030 Delta Airlines 7.375% 1/15/2026 Petrobras Global Finance BV 6.85% 6/5/2115 Broadcom LTD 4.7% 4/15/2025 HCA Inc. 3.5% 9/1/2030 Broadcom LTD 4.3% 11/15/2032 Western Midstream Operating, LP 4.05% 2/1/2030 Centene Corp. 3% 10/15/2030 |
| Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Issues | Forward Calendar |
|---|---|
| 1. AMN Healthcare Inc. (USD) 4% 4/15/2029 144A (10/05/2020): 350MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4%.
2. AMN Healthcare Inc. (USD) 4% 4/15/2029 Reg S (10/05/2020): 350MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4%. |
1. American Residential Services: $470MM TLB (B1/B)
2. Array Residential Services: $575MM TLB (B1/B+) 3. Fly Leasing LTD: $180MM TLB (Ba3/BBB-) 4. Maravai Lifesciences: $750MM credit facilities: $150MM revolver; $600MM TLB 5. Pae Holding Corp.: $890MM TLB (B2/B) 6. Quirch Foods LLC: $675MM credit facilities: $475MM TLB; $200MM revolver 7. Vander-Bend Manufacturing Inc.: $197.5MM credit facilities: $20MM revolver; $177.5MM TLB 8. Wheelabrator Technologies Inc.: $1.3965B TLB 9. Vander-Bend Manufacturing Inc.: $197.5MM credit facilities: $20MM revolver; $177.5MM TLB 10. Wheelabrator Technologies Inc.: $1.3965B TLB |
Additional Commentary
NEW ISSUANCE WATCH: AMN Healthcare Inc. issued 350MM of Notes.
| Top Widening Loans | Top Narrowing Loans |
| Wittur (EUR) TL E+850 09/19/2027 Acetow (EUR) TLB L+475 05/31/2023 Aruba Investments Inc. (EUR) TLB E+425 07/01/2025 EG Group (USD) TLB L+400 02/06/2025 Casmar Holdings Australia PTY LTD (USD) TLB L+450 12/07/2023 |
Ball Corp. (USD) TLA L+150 03/21/2024 Greenway Health LLC (USD) TL L+375 02/16/2024 Distributed Power Inc. (USD) TLB L+325 11/02/2025 Alorica (USD) TL L+375 06/30/2022 Carrols Restaurant Group (USD) TLB1 L+625 04/30/2026 |
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 14 bps (basis points), as of 10/06/2020
- Net negative capital flows into high-yield ETFs & mutual funds
|
INVESTMENT GRADE BOND RESEARCH
|
October 6, 2020
|
Bond Markets
GLOBAL MARKETS WERE WAY UP UNTIL PRESIDENT TRUMP DECIDED TO PULL OUT OF THE STIMULUS NEGOTIATIONS UNTIL AFTER THE ELECTION. US MARKETS FELL OVER 1%. 10 Year Treasury notes were down 2.2 bps. S&P -1.40 %, Dow -1.34%, NASDAQ -1.57%.
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 36 MILLION+ CASES AND 1.053 MILLION DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 7.7 MILLION+ CASES AND 216000+ 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 | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
CVS Health Corp. 5.05% 3/25/2048 Gilead Sciences Inc. 2.8% 10/1/2050 Alphabet Inc. 2.05% 8/15/2050 General Electric Co. 4.35% 5/1/2050 Pacific Gas & Electric Co. 4.95% 7/1/2050 Boeing Co. 5.805% 5/1/2050 Boeing Co. 5.15% 5/1/2030 Pacific Gas & Electric Co. 2.5% 2/1/2031 Bank of America Corp. 1.898% 7/23/2031 CVS Health Corp. 4.3% 3/25/2028 |
| Industry Returns Tracker | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Issues | New Issues [Continued] |
|---|---|
| 1. Crombie REIT (CAD) 2.686% 3/31/2028 (10/05/2020): 150MM Senior Unsecured Notes, Price at Issuance 100, Yielding 2.69%.
2. Hydro One Inc. (CAD) 0.71% 1/16/2023 (10/05/2020): 600MM Senior Unsecured Notes, Price at Issuance 99.98, Yielding .72%. 3. General Mills Inc. (USD) 6.41% 10/15/2022 (10/05/2020): 100MM Unsecured Notes, Price at Issuance 111.299, Yielding .78%. 4. Leidos Inc. (USD) 2.3% 2/15/2031 144A (10/05/2020): 1000MM Senior Unsecured Notes, Price at Issuance 99.517, Yielding 2.35%. 5. Protective Life Global Funding (USD) 0.631% 10/13/2023 144A (10/05/2020): 500MM Secured Notes, Price at Issuance 100, Yielding .63%. 6. Everest Reinsurance Holdings Inc. (USD) 3.5% 10/15/2050 (10/05/2020): 1000MM Senior Unsecured Notes, Price at Issuance 98.844, Yielding 3.56%. 7. Leidos Inc. (USD) 2.3% 2/15/2031 Reg S (10/05/2020): 1000MM Senior Unsecured Notes, Price at Issuance 99.517, Yielding 2.35%. 8. Protective Life Global Funding (USD) 0.631% 10/13/2023 Reg S (10/05/2020): 500MM Secured Notes, Price at Issuance 100, Yielding .63%. 9. WEC Energy Group Inc. (USD) 1.375% 10/15/2027 (10/05/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.92, Yielding 1.39%. 10. WEC Energy Group Inc. (USD) 1.8% 10/15/2030 (10/05/2020): 450MM Senior Unsecured Notes, Price at Issuance 99.909, Yielding 1.81%. |
Additional Commentary
NEW ISSUANCE WATCH: Leidos Inc. issued 1000MM in notes.
| Top Widening Loans | Top Narrowing Loans |
| Wittur (EUR) TL E+850 09/19/2027 Acetow (EUR) TLB L+475 05/31/2023 Aruba Investments Inc. (EUR) TLB E+425 07/01/2025 EG Group (USD) TLB L+400 02/06/2025 Casmar Holdings Australia PTY LTD (USD) TLB L+450 12/07/2023 |
Ball Corp. (USD) TLA L+150 03/21/2024 Greenway Health LLC (USD) TL L+375 02/16/2024 Distributed Power Inc. (USD) TLB L+325 11/02/2025 Alorica (USD) TL L+375 06/30/2022 Carrols Restaurant Group (USD) TLB1 L+625 04/30/2026 |
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 14 bps (basis points), as of 10/06/2020
- 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
