MARKETS STARTED MIXED AND FINISHED UP AS POLITICAL PARTIES FIGHT OVER HOW MUCH STIMULUS MONEY SHOULD BE GIVEN AND TO WHOM? SECOND LOCKDOWN POSSIBLE IN EUROPE. 10 Year Treasury notes were down .7 bps. S&P +1.05%, Dow +0.52%, NASDAQ +1.71%.
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Market Summaries
North American Bond Research – September 22, 2020
Posted on September 22, 2020|
HIGH YIELD BOND RESEARCH
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September 22, 2020
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Bond Markets
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 31.7 MILLION+ CASES AND 973000+ DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 7.1 MILLION+ CASES AND 205000+ 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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Petrobras Global Finance BV 8.75% 5/23/2026 Newfield Exploration Co. 5.375% 1/1/2026 T-Mobile USA Inc. 3.5% 4/15/2025 144A HCA Inc. 3.5% 9/1/2030 Chubb INA Hldgs Inc. 1.375% 9/15/2030 T-Mobile USA Inc. 3.875% 4/15/2030 144A Sprint Corp. 7.625% 3/1/2026 Pacific Gas & Electric Co. 4.75% 2/15/2044 Methanex Corp. 5.125% 10/15/2027 T-Mobile USA Inc. 3.75% 4/15/2027 144A |
| Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| New Issues | Forward Calendar |
|---|---|
| 1. PM General Purchaser LLC (USD) 9.5% 10/1/2028 144A (09/21/2020): 600MM Secured Notes, Price at Issuance 100, Yielding 9.5%.
2. PM General Purchaser LLC (USD) 9.5% 10/1/2028 Reg S (09/21/2020): 600MM Secured Notes, Price at Issuance 100, Yielding 9.5%. |
1. Omnitracs LLC: $355MM TLs: $160MM TL (B2/B-); $195MM TL (Caa2/CCC)
2. Vander-Bend Manufacturing Inc.: $197.5MM credit facilities: $20MM revolver; $177.5MM TLB 3. MAG Aerospace: $290.7MM TL (B3/B) 4. EFS Cogen Holdings LLC: $1.05B credit facilities: $100MM revolver (Ba2/BB-); $950MM TLB (Ba3/BB-) 5. ECI Software Solutions: $990MM TLs: $710MM TL (B2/B-); $280MM TL (Caa2/CCC) 6. Amwins Group Inc.: $100MM TLB (Ba3/B+) 7. Allegro Microsystems Inc.: $325MM TL 8. Michaels Cos Inc.: $1.62B TLB (B+) 9. Allegro Microsystems Inc.: $325MM TL 10. Amwins Group Inc.: $100MM TLB (Ba3/B+) |
Additional Commentary
NEW ISSUANCE WATCH: PM General Purchaser LLC issued 600 MM in notes.
| Top Widening Loans | Top Narrowing Loans |
| Vistra Group LTD (USD) TL2 L+725 10/26/2023 SSH Group Hldg Inc. (USD) TL2 L+825 07/30/2026 Advantage Sales & Marketing Inc. (USD) TL2 L+650 07/25/2022 Garrett Motion (USD) TLB L+250 09/27/2025 Garrett Motion (EUR) TLB E+350 09/27/2025 |
Dubois Chemicals Inc. (USD) TL L+450 09/30/2026 Cvent Inc. (USD) TL L+375 11/02/2024 Duravant LLC (USD) TL L+325 07/25/2024 NSO Group (USD) TL L+700 03/03/2025 Sandvine Corp. (USD) TL 10/15/2026 |
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 bp (basis points), as of 09/21/2020
- Net negative capital flows into high-yield ETFs & mutual funds
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INVESTMENT GRADE BOND RESEARCH
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September 22, 2020
|
Bond Markets
MARKETS STARTED MIXED AND FINISHED UP AS POLITICAL PARTIES FIGHT OVER HOW MUCH STIMULUS MONEY SHOULD BE GIVEN AND TO WHOM? SECOND LOCKDOWN POSSIBLE IN EUROPE. 10 Year Treasury notes were down .7 bps. S&P +1.05%, Dow +0.52%, NASDAQ +1.71%.
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 31.7 MILLION+ CASES AND 973000+ DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 7.1 MILLION+ CASES AND 205000+ 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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HSBC Hldg PLC VAR% 9/22/2028 Boeing Co. 5.15% 5/1/2030 Oracle Corp. 3.85% 4/1/2060 Wal-Mart Stores Inc. 3.7% 6/26/2028 Dupont de Nemours Inc. 2.169% 5/1/2023 Boeing Co. 5.93% 5/1/2060 Johnson & Johnson 2.45% 9/1/2060 Emerson Electric Co. 0.875% 10/15/2026 Morgan Stanley FLT% 1/20/2022 GE Capital Intl. Funding Co. 4.418% 11/15/2035 |
| Industry Returns Tracker | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| New Issues | New Issues [Continued] |
|---|---|
| 1. CU Inc. (CAD) 2.609% 9/28/2050 (09/21/2020): 150MM Senior Unsecured Notes, Price at Issuance 100, Yielding 2.61%. |
Additional Commentary
NEW ISSUANCE WATCH: CU Inc issued 150 MM in notes.
| Top Widening Loans | Top Narrowing Loans |
| Vistra Group LTD (USD) TL2 L+725 10/26/2023 SSH Group Hldg Inc. (USD) TL2 L+825 07/30/2026 Advantage Sales & Marketing Inc. (USD) TL2 L+650 07/25/2022 Garrett Motion (USD) TLB L+250 09/27/2025 Garrett Motion (EUR) TLB E+350 09/27/2025 |
Dubois Chemicals Inc. (USD) TL L+450 09/30/2026 Cvent Inc. (USD) TL L+375 11/02/2024 Duravant LLC (USD) TL L+325 07/25/2024 NSO Group (USD) TL L+700 03/03/2025 Sandvine Corp. (USD) TL 10/15/2026 |
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 bp (basis points), as of 09/22/2020
- Net positive capital flows into high-yield ETFs & mutual funds
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