BUXX DOLLAR INDEX FELL 26 CENTS TO 88.11 AS THE DOLLAR WEAKENED AGAINST THE EURO. GLOBAL MARKETS WERE MIXED WHILE US MARKETS JUMPED ON A BUNCH OF M&A DEALS AND RESUMPTION OF COVID-19 VACCINE TRIALS. 10 Year Treasury notes were up .2 bps. S&P +1.27%, Dow +1.18%, NASDAQ +1.87%.
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Market Summaries
North American Bond Research – September 14, 2020
Posted on September 14, 2020|
HIGH YIELD BOND RESEARCH
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September 14, 2020
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Bond Markets
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 29.4 MILLION+ CASES AND 930000+ DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 6.7 MILLION+ CASES AND 199000+ 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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Consolidated Communications Hldg Inc. 6.5% 10/1/2022 Occidental Petroleum Corp. 5.875% 9/1/2025 Occidental Petroleum Corp. 8.875% 7/15/2030 NuStar Logistics LP 5.75% 10/1/2025 CBL & Associates LP 5.25% 12/1/2023 Consol Energy Inc. 5.875% 4/15/2022 (1) T-Mobile USA Inc. 3.75% 4/15/2027 144A Howmet Aerospace Inc. 6.875% 5/1/2025 Occidental Petroleum Corp. 3.5% 8/15/2029 CNH Industrial NV 4.375% 11/6/2020 |
| Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| New Issues | Forward Calendar |
|---|---|
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(None Current 09/14/2020)
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1. MAG Aerospace: $290.7MM TL (B3/B)
2. CJ Foods Inc.: $285MM TLB 3. Cablevision Lightpath: $600MM TL (B1/B+) 4. RCN Grande: $1.19B TLB 5. Allegro Microsystems Inc.: $325MM TL 6. RCN Grande: $1.19B TLB 7. MAG Aerospace: $290.7MM TL (B3/B) 8. CJ Foods Inc.: $285MM TLB 9. Cablevision Lightpath: $600MM TL (B1/B+) 10. Avianca : $1.3B DIP DD TLB |
Additional Commentary
NEW ISSUANCE WATCH: Nielsen Finance LLC issued 750MM in notes
| Top Widening Loans | Top Narrowing Loans |
| Unifrax Corp. (USD) TL2 L+850 12/14/2026 NCL Corp. LTD (USD) TLA L+150 01/02/2024 Casper Bidco (EUR) TL E+850 07/30/2027 Samsonite IP Holdings SARL (USD) TLA L+150 04/19/2023 New LightSquared LLC (USD) TL PIK L+875 12/07/2020 |
DigiCert Inc. (USD) TL2 10/16/2027 Yak Mat (USD) TLB L+500 07/11/2025 Tecomet Inc. (USD) TL L+350 05/01/2024 Advantage Sales & Marketing Inc. (USD) TL2 L+650 07/25/2022 Stubhub (USD) TLB L+350 02/13/2027 |
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 bp (basis points), as of 09/14/2020
- Net negative capital flows into high-yield ETFs & mutual funds
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INVESTMENT GRADE BOND RESEARCH
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September 14, 2020
|
Bond Markets
BUXX DOLLAR INDEX FELL 26 CENTS TO 88.11 AS THE DOLLAR WEAKENED AGAINST THE EURO. GLOBAL MARKETS WERE MIXED WHILE US MARKETS JUMPED ON A BUNCH OF M&A DEALS AND RESUMPTION OF COVID-19 VACCINE TRIALS. 10 Year Treasury notes were up .2 bps. S&P +1.27%, Dow +1.18%, NASDAQ +1.87%.
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 29.4 MILLION+ CASES AND 930000+ DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 6.7 MILLION+ CASES AND 199000+ 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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Oracle Corp. 3.6% 4/1/2050 Oracle Corp. 3.85% 4/1/2060 Suzano Austria GmbH 3.75% 1/15/2031 Nvidia Corp. 3.5% 4/1/2050 General Motors Financial Co. Inc. 3.6% 6/21/2030 Wells Fargo Bank NA 2.6% 1/15/2021 CVS Health Corp. 5.05% 3/25/2048 Walt Disney Co. 2.65% 1/13/2031 American Express Co. 3.7% 11/5/2021 Deutsche Bank AG VAR% 9/18/2024 |
| Industry Returns Tracker | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| New Issues | New Issues [Continued] |
|---|---|
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(None Current 09/14/2020)
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Additional Commentary
NEW ISSUANCE WATCH: Nissan Motor Co. LTD issued 8000MM in notes.
| Top Widening Loans | Top Narrowing Loans |
| Unifrax Corp. (USD) TL2 L+850 12/14/2026 NCL Corp. LTD (USD) TLA L+150 01/02/2024 Casper Bidco (EUR) TL E+850 07/30/2027 Samsonite IP Holdings SARL (USD) TLA L+150 04/19/2023 New LightSquared LLC (USD) TL PIK L+875 12/07/2020 |
DigiCert Inc. (USD) TL2 10/16/2027 Yak Mat (USD) TLB L+500 07/11/2025 Tecomet Inc. (USD) TL L+350 05/01/2024 Advantage Sales & Marketing Inc. (USD) TL2 L+650 07/25/2022 Stubhub (USD) TLB L+350 02/13/2027 |
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 bp (basis points), as of 09/14/2020
- Net positive capital flows into high-yield ETFs & mutual funds
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