Wednesday, May 17, 2017

Corporate Bond Market

US Equity Futures are weaker to start the day with the DJ Futures -85 and the DJ Futures -10. Overseas equities are mixed through the overnight with Europe trading lower and Asian markets mixed. US Treasuries are stronger with yields on the 10 yr last at 2.287% and oil is up, last quoted $48.91/barrel. Credit is wider with the Investment Grade Index showing 44.23/45.66 and cash is also weaker.

In credit news, Tuesday’s primary market saw $10.95b priced from 6 issuers in Investment Grade Credit bringing the monthly tally to $103.045b. From yesterday’s new deals, we are active in PNC and Morgan Stanley.

In economic data, Mortgage Applications dropped 4.1% last week.

Municipal Bond Market

Munis finished stronger yesterday as the yield on the 10-year benchmark muni general obligation fell two basis points to 2.09%. The Los Angeles Unified School District’s $1.08 billion of refunding bonds was priced for institutions on Tuesday in a deal rated Aa2 by Moody’s and AAA by Fitch. Morgan Stanley priced the School District’s dedicated unlimited ad valorem property tax general obligation refunding bonds as 5’s to yield 0.74% in 2017, 0.83% in 2018, 0.96% in 2019, as 4’s to yield 1.25% in 2021, and 4’s and 5’s to yield 2.28% in a split 2027 maturity. Yesterday we also saw Wells Fargo price the NY Dorm Authority’s $680.95 million of tax-exempt and taxable revenue bonds for New York University. The deal, which is rated Aa2 by Moody’s and AA-minus by S&P, came in two parts. $452.97 million of Series 2017A tax-exempts were priced as 4’s to yield from 0.97% in 2019, 5’s to yield 3.15% in 2040 and 3.17% in 2043. $227.98 million of Series 2017B taxables were priced to yield 1.599% in 2019, 3.729% in 2032, 3.779% in 2034, 3.998% in 2039 and 4.148% in 2047. Tomorrow we will see a deal from Sibert Cisneros Shank involving the District of Columbia’s $576 million of Series 2017A GOs.

 

Monday, May 15, 2017

Corporate Bond Market

US Equity Futures are up to start the session with the DJ Futures +41 and the DJ Futures +3. Overseas equity markets are mixed through the overnight with European and Asian markets mixed. US Treasuries are down with yields on the 10 yr last at 2.334% and oil is up, last quoted $49.29/barrel. Credit is wider with the Investment Grade Index showing 44.68/45.11 and cash is stronger.

In credit news, last week’s primary market saw $39.17bn priced in Investment Grade Credit. YTD volume Today is expected to be a busy day in the primary market with deals already announced from: HSBC, Wells Fargo, Australia & New Zealand Banking Group, BPCE, and Cheniere Energy with more to come.

In economic data, May’s Empire Manufacturing will be reported this morning followed by NAHB Housing Market Index and Foreign Net Transactions.

Municipal Bond Market

Munis will see another big week in issuance as $7.17 bn of negotiated deals and $1.62 bn of competitive sales are expected to hit the market. Morgan Stanley is set to price $1.08 bn in GO refunding and ad valorem property tax bonds for the Los Angeles Unified School District on Tuesday. The deal, which is rated Aa2 by Moody’s and AAA by Fitch, will be the largest of the week. Wells Fargo is expected to price $665 million of NY Dorm Authority revenue tax-exempt and taxable bonds for NYU on Tuesday. This deal, which is ratedAa2 by Moody’s and AA- by S&P, will come to market as Series A tax-exempt bonds maturing from 2019-2038 including a term bond in 2043 and Series B taxable bonds maturing in 2019 through 2032 including terms in 2039 and 2047. Last but not least, Siebert Cisneros Shank & Co will price $576.415 million of GO refunding bonds on Wednesday for the District of Columbia in a deal that is rated Aa1 by Moody’s and AA by S&P and Fitch and expected to mature from 2019 through 2037.

Tuesday, May 9, 2017

Corporate Bond Market
US Equity Futures are up to start the session with the DJ Futures +35 and the DJ Futures +3. Overseas equity markets are mostly stronger through the overnight with the exception of China. US Treasuries are down with yields on the 10 yr last at 2.4% and oil is weaker, last quoted $46.19/barrel. Credit is tighter with the Investment Grade Index showing 44.25/45.68 and cash is stronger.

In credit news, Monday’s primary market saw $13.3bn priced in Investment Grade Credit with Intel leading the charge. From yesterday’s new issuance, we are active in Intel, Amgen, PPL Energy and Appalachian Power. Today is expected to be a busy day in the primary market with deals already announced from: Bank of NY, Capital One, CK Hutchinson, Costco, Hexion, Community Health, Springleaf Finance, Resolute Energy, Entergy Arkansas, and Enjoy S.A.

In economic data, monthly change in wholesale inventories will be reported this morning.

Municipal Bond Market
Despite Treasuries being weaker on Monday, the yield on the 10-year benchmark muni GO was flat from 2.17% on Friday. No big deals came to market yesterday. Traders are waiting for Cuyahoga County, Ohio, and the state of Hawaii to price for retail investors today and institutions on Wednesday. Today we will see deals from Houston Independent School District and San Francisco Bay Area Rapid Transit District. Citigroup is pricing $838 million of limited tax schoolhouse and refunding bonds for the Houston Independent School District in Texas for retail today and for institutions tomorrow. Likewise, Barclays Capital is set to price $388.85 million of GO bonds for the San Francisco Bay Area Rapid Transit District. Both deals are rated AAA by Moody’s and S&P.

Monday, May 8, 2017

Corporate Bond Market

US Equity Futures are down to start the week with the DJ Futures -14 and the DJ Futures -1.25. Overseas equity markets are mixed through the overnight. US Treasuries are stronger with yields on the 10 yr last at 2.336% and oil is weaker, last quoted $46.08/barrel. Credit is tighter with the Investment Grade Index showing 44.45/45.89 and cash is weaker.

In credit news, last week’s primary market saw $39.425bn priced in Investment Grade Credit with domestic corps leading the charge. We are active in Eli Lilly, Northern Trust and Teachers Insurance. This week is expected to be another busy week in the new issue market with analysts’ consensus calling for at least $25bn. There are deals announced from Century Communities, CareTrust REIT and Woori Bank for today’s business.

Municipal Bond Market

Muni market volume is expected to rise to $9.36bn with $7.82bn being negotiated deals and $1.54 billion being competitive sales. This surge in volume will bring us to a 9-week high. Merrill is set to price bonds on Wednesday for the County of Cuyahoga, Ohio, and the State of Hawaii which are the two largest deals of the week. The Cuyahoga deal, which is rated Baa3 by Moody’s and BBB- by S&P and Fitch, includes $915 million of revenue bonds for the Metrohealth System Hospital. The second deal is the State of Hawaii’s $856 million GO bonds which are rated Aa1 by Moody’s, AA+ by S&P, and AA by Fitch.

Tuesday, May 2, 2017

Corporate Bond Market

US Equity Futures are down to start the day with the DJ Futures -18 and the S&P Futures -1.75. Overseas equity markets are mixed with European equities mostly stronger and Asian markets mixed. US Treasuries are weaker with yields on the 10 yr at 2.331% and oil is stronger, last quoted $49.17/barrel. Credit is tighter with the Investment Grade Index showing 45.679/47.107 and cash is also stronger.

In credit news, yesterday was light in Investment Grade new issuance pricing just $4.35bn from 2 issuers. We are active in both, Kimberly Clark and Unitec Technologies from yesterday. Today is expected to be a heavy day in the primary market ahead of tomorrow’s FOMC Rate Decisions.

Municipal Bond Market

Yesterday was very quiet in the muni market. Munis finished the day weaker as yields on the benchmark 10-year rose to 2.183%. Traders anticipate $7.02bn of new issuance this week including negotiated deals from University of California Regent ($1.1bn), Kentucky Economic Development Finance Authority ($454.815 million), Owensboro Health ($495.3 million), and the state of Wisconsin ($688.31 million). We will also see competitive deals from Minneapolis ($80 million), City of Lawrence, Kansas ($20.5 million), and the Virginia Public School Authority ($17.9 million). Collectively, municipalities plan to sell up to $14.7bn of bonds in the next month. In other news, the stay on litigation that protected Puerto Rico from lawsuits expired today. Bondholders have already filed lawsuits against Puerto Rico as they try to recoup millions of dollars invested in PR bonds. If and when Puerto Rico announces a bankruptcy-like procedure to restructure its $70bn in debt, it will be the largest US municipal bankruptcy ever.

 

Monday, May 1, 2017

Corporate Bond Market

US Equity Futures are up to start the day with the S&P Futures +29 and the DJ Futures +4.50. Overseas equity markets are mixed with European and Asian equities both mixed. US Treasuries are weaker with yields on the 10 yr at 2.296% and oil is weaker, last quoted $49.07/barrel. Credit is weaker with the Investment Grade Index showing 46.06/47.48 and cash is stronger.

In credit news, April’s primary market saw $28.9bn priced in Investment Grade credit bringing YTD tally to $615.575. High Yield has priced just over $97bn this year. This week is expected to bring at least $25bn in Investment Grade new issuance this week. Issuers will most likely front load this week’s deals ahead of Wednesday’s FOMC rate decision. There are deals announced from United Technologies and The New Home Co.

On the earnings front, DISH and Cardinal Health both reported numbers that beat analysts’ estimates for Q1.

In economic data, there are a few announcements scheduled for today. First, Personal Income & Spending will be reported followed by ISM Manufacturing and Construction Spending.

Municipal Bond Market

This week’s new issue calendar is just north of $7bn and is composed of $5.96 billion of negotiated deals and $1.06 billion of competitive sales. Jefferies is set to price $1.13bn of University of California Regent’s bonds on Thursday. The deal, which is rated Aa2 by Moody’s and AA by S&P and Fitch, is expected to be split into $447.83 million of tax-exempt bonds, $500 million of taxable fixed rate notes, and $186.225 million of taxable bonds. The state of Wisconsin is also scheduled to price a combined $688.31 million in bonds for on Tuesday. The deal, which is rated Aa3 by Moody’s and AA- by S&P and Fitch, will see $403.105 million of general fund annual appropriation refunding taxable bonds maturing from 2018 through 2027. While Wells Fargo will price the $403.105 million in bonds, JP Morgan will price the other $285.205 million in transportation revenue bonds which is rated Aa2 by Moody’s and AA+ by S&P and Fitch. In other news, Puerto Rico was happy to learn on Sunday that they will receive $295 million in Medicaid after Congress finally reached a deal on funding the government through September.

Thursday, April 27, 2017

Corporate Bond Market

US Equity Futures are up to start the day with the S&P Futures +3.50 and the DJ Futures +28. The global tone is mixed with European and Asian equities trading mixed through the overnight. US Treasuries are a bit wider with yields on the 10 yr at 2.309% and oil is weaker, last quoted $49.12/barrel. Credit is weaker with the Investment Grade Index showing 45.415/46.704 and cash is stronger.

In credit news, Wednesday’s primary market saw $10.2bn priced in Investment Grade credit and just 1 deal priced in High Yield for $300mn. From yesterday’s new deals, we are active in: Crown Castle, Credit Bank of Moscow, State Grid Overseas (CHGRID), and CSX. There are deals announced from: American Express, Pepsi, Energuate Trust, China Southern Power, Eagle Holding, Suncorp-Metway, and MHP.

On the earnings front: Ally Financial, American Airlines, Comcast, UPS, KKR, Ford, Marathon Petroleum, Dow Chemical, Under Armour, Bristol Meyers, and Union Pacific all announced earnings this morning that outperformed Wall St’s earnings expectations for Q1 2017 while US Steel, Cliffs, Simon Property Group, Southwest Airlines, International Paper, and Boston Scientific.

In economic data, there are a few key announcements scheduled for today. First, March’s Wholesale Inventories will be reported followed by Durable and Capital Goods Orders. Later on will be Jobless Claims, Consumer Comfort, and Home Sales.


Municipal Bond Market

The muni market saw a tremendous amount of issuance on Wednesday highlighted by deals from the LA Dept. of Water and Power and the Port Authority of New York and New Jersey. After holding a one-day retail order period, Wells Fargo priced $554.275 million of Port Authority tax-exempt consolidated bonds in 3 tranches across many different maturities. $250 million of the bonds were priced as 5’s to yield 2.27% in 2027, 2.44% in 2028, 2.66% in 2030, 3.07% in 2034, 3.14% in 2037, 3.28% in 2042, 3.35% in 2047, and lastly 3.60% and 3.55% in a split 2057 maturity. $254.275 of the bonds were priced as 2’s to yield 1.00% in 2017 and as 3’s to yield 1.12% in 2018. Bonds with a 5% coupon were also priced to yield 1.43% in 2020, 2.01% in 2023, 2.41% in 2025, 3.04% in 2030, 3.25% in 2033, and 3.45% in 2037. Yesterday Merrill priced $534.28 million of the LA Dept. of Water and Power revenue bonds for both retail and institutions. The bonds were priced for institutions as 5’s to yield 0.85% in 2018, 3.14% in 2038, 3.19% in 2041, and split 3.12-3.22% in 2044. Finally, there were 4% coupon term bonds maturing in 2047 priced at 3.6%. There are no significant muni issuances expected today.

Wednesday, April 26, 2017

Corporate Bond Market

US Equity Futures are flat to start the session with the S&P Futures and the DJ Futures both unchanged. The global tone is mixed with European and Asian mixed. US Treasuries are a bit tighter with yields on the 10 yr at 2.327% and oil is weaker, last quoted $49.22/barrel. Credit is stronger with the Investment Grade Index showing 45.257/46.559 and cash is wider.

In credit news, yesterday’s primary market saw $2.75bn priced in Investment Grade credit and just 1 deal priced in High Yield. Internationally, there were a handful on emerging market deals that were brought to market yesterday. From yesterday’s new deals, we are active in: Nextera Energy, Orazul Energy, and Kaiser Foundation Hospital. There are deals announced from: KOKS Finance, Saka Energi Indonesia, Credit Bank of Moscow, Asian Development Bank, and State Grid so far.

On the earnings front: Hess, Boeing, State Street, Twitter, United Technologies, Santander, Axalta, Thermo Fisher, Procter and Gamble, Pepsi, and Baxter all announced earnings this morning that outperformed Wall St’s earnings expectations for Q1 2017.

In economic data, MBA Mortgage Applications grew 2.7% last week.


Municipal Bond Market

Yesterday Goldman Sachs priced $2.12 billion in California Health Facilities Financing Authority revenue bonds for Kaiser Permanente. The deal came in 5 tranches and was spread across 8 maturities. $1.3 billion of fixed-rate bonds were priced as 4’s in 2038 at 3.83%, as 4’s in 2044 at 3.95%, as 5’s in 2047 at 3%, and 4’s in 2051 at 4.03%. The next largest tranche saw $408.74 million in green bonds that were priced as 5’s at 2027 to yield 2.55%. According to traders, the deal, which was rated AA-minus by S&P and A-plus by Fitch, received a lot of interest and was thought to be relatively cheap. Yesterday also saw Wells Fargo price $694.74 million of tax-exempt consolidated bonds for Port Authority of New York and New Jersey. These bonds were rated Aa3 by Moody’s and AA-minus by S&P and Fitch. $444.74 million of the tax-exempt consolidated bonds were priced for retail as 5’s to yield 1.43% in 2020 and 3.43% in 2037. Last but not least, Siebert Cisneros Shank priced $226.82 million of Atlanta water and wastewater revenue refunding bonds across 4 maturities. The deal, which is rated Aa2 by Moody’s, AA-minus by S&P, and A-plus by Fitch, was priced to yield from 1.27% with 5’s in 2020 to 1.96% with 5’s in 2024 and from 2.56% with 5’s in 2028 to 3.61% with 3.5’s in 2039.

Tuesday, April 25, 2017

Corporate Bond Market

US Equity Futures are off to a strong start this morning with the S&P Futures +4.50 and the DJ Futures +115. The global tone is strong with European and Asian equities also trading higher across the board. US Treasuries are wider with yields on the 10 yr at 2.296 and oil is up to $49.26/barrel. Credit is tighter this morning with the Investment Grade Index showing 46.89/48.33 and cash is also stronger.

In credit news, Monday’s primary market saw $2.6bn priced in Investment Grade with US Bancorp and TD Ameritrade leading the way. April’s volume is up to $78.9bn in Investment Grade new issuance bringing the YTD tally to $589.275- up 4% y/y. The consensus estimate calls for less than $25bn to price this week. There are deals announced from: Bill Barrett, PhosAgro, Rusal Capital, and Ziraat Bankasi so far for today.

On the earnings front: Catepillar, Corning, McDonalds, Polaris, Du Pont, JetBlue, 3M, and Valero all announced Q1 2017 earnings that outperformed Wall St’s earnings expectations for Q1 2017 while; CIT, Coca Cola, Lockheed Martin, and T Rowe Price fell short of analysts’ expectations.

In economic data, there are a few key announcements scheduled for today. First, the monthly change in FHFA Housing Price Index will be reported followed by March’s tally of New Home Sales and Consumer Confidence.

Municipal Bond Market

Municipal bonds finished weaker on Monday after treasury yields soared in the morning before recouping a portion of their losses. Today Goldman will price almost $4bn in bonds from Kaiser Permanente. The deal consists of $1.9bn in California Hlth Facs Fin revenue bonds and $2bn in taxable bonds (both rated AA- by S&P and A+ by Fitch). Wells Fargo is seen pricing $994.74 million in NY & NJ Port Authority consolidated bonds which are rated Aa3 by Moody’s and AA- by S&P and Fitch. On Thursday Merrill will price more than half a billion in Los Angeles Dept of Wtr & Pwr revenue bonds. In Puerto Rico news, Banco Popular impressed investors when it beat the highest earnings estimates. We are still waiting for more information on the recently developing PREPA lawsuit.

Monday, April 17, 2017

Corporate Bond Market

US Equity Futures are all slightly lower to start the session with the S&P Futures -2 and the DJ Futures -14. Global  equities are also trading lower with the exception of Europe who is closed for a holiday. Yields on the 10 yr are at 2.220 and oil is down almost 50 cents. WTI Crude is quoted $52.72/ barrel this morning. Credit is again wider this morning with the Investment Grade Index showing 50.498/51.884 and cash is also slightly wider.

There were no investment grade issuances on Thursday. As a result, April’s volume remains at $50.85bn and YTD volume is $561.225bn. There is also no investment grade new issue supply expected today, but issuance should pick up this week.

No economic data has been reported yet, but we will see Empire Manufacturing numbers as well as Netflix earnings.

Municipal Bond Market

The muni market will see nearly $7 bn of new issuance this week after a strong finish to last week. Last week we saw New York City TFA’s issued at a 3.46 and trade as high as 3.36 before settling down around 3.44%. With a plethora of low-yielding paper out there, we can expect people to continue chasing yield. On Wednesday the PA hospital, Geisinger Authority, Montour Co, will issue $345.25 million in revenue bonds and California will price $1.25 bn of taxable GO high speed passenger train bonds on Thursday. In Puerto Rico we saw more litigation than anything else. A group of COFINA bondholders announced that they are suing BNY Mellon and a Puerto Rican Union filed a lawsuit against Governor Rossello and the Board over pension cuts.  

2018: unchanged

2019: 1bp bump

2020-2023: 2bp bump

2024-2038: 4bp bump

2039-2047: 3bp bump


         tsy 10yr 2.220%

Thursday, April 13, 2017

Corporate Bond Market

US Equity Futures are all slightly lower to start the session with the S&P Futures -6.25 and the DJ Futures -32. Global  equities are trading significantly lower with all of Europe and almost all of Asia negative to start the morning. Treasuries are mostly unchanged from yesterday’s close and oil is just barely up. WTI Crude is quoted $53.20/ barrel this morning and the 10yr  is at 2.239%. Credit is again wider this morning with the Investment Grade Index showing 50.191/51.655 and cash is also slightly wider.

Yesterday’s primary market for Investment Grade saw $11bn priced from 3 emerging market issuers across 4 tranches while sovereign issues saw only $1bn from one deal. This brings April’s volume to $50.85bn and YTD volume to $561.225bn. The Kingdom of Saudi Arabia issued a total of $9bn. Some of the banks reported first quarter earnings this morning as JP Morgan and Citi beat expectations. There is no investment grade new issue supply expected today.

No economic data has been reported yet, but we will see PPI numbers and UMich Sentiment data as the day goes on.

Wednesday, April 12, 2017

Corporate Bond Market

US Equity Futures are slightly lower to start the session with the S&P Futures -3.5 and the DJ Futures -14. Global  equities are mixed as of now with no index significantly moving. Both treasuries and oil are mostly unchanged. WTI Crude is quoted $53.64/ barrel this morning and the 10yr  is hovering around 2.3%. The 10 yr hasn’t traded below 2.3% since November. Credit is wider this morning with the Investment Grade Index showing 49.196/50.654 and cash is slightly tighter.

Yesterday’s primary market for Investment Grade saw $6bn priced from 4 issuers across 9 tranches. This brings April’s volume to $39.85bn and YTD volume to $550.225bn. KazMunayGas issued $2.75bn with Toyota right behind them at $2.25bn. From the new deals, we are active in Toyota and Phillips 66. Today is expected to be another light day with deals announced from Saudi and Daiwa Securities.

In economic data, the monthly budget statement came in at -$169bn compared to February’s -$108bn. Aside from that, we saw MBA mortgage applications come in at 1.5% compared to -1.6% previously.

Tuesday, April 11, 2017

Corporate Bond Market

US Equity Futures are mixed to start the session with the DJ Futures -8 and the S&P Futures -1.75. The global tone is mixed with overseas equities mixed through the overnight. Oil is down, quoted $53.04/ barrel this morning and treasuries are up with the 10yr last at 2.346%. Credit is wider with the Investment Grade Index showing 48/49.45 and cash is tighter.

In credit news, Monday’s primary market saw $4bn priced in Investment Grade Credit from 3 issuers with GM leading the charge. April’s new issue tally is up to $33.85bn and YTD volume totals $544.225bb. From yesterday’s new issue, we are active in GM, Mass Mutual, and Darden. Today is expected to be another light day in the primary market.   

In economic data, March’s NFIB Small Business Optimism was in line with survey estimates and February’s Job Openings by Industry will be reported this morning.

Monday, April 10, 2017

Corporate Bond Market

US Equity Futures are up to start the week with the DJ Futures +15 and the S&P Futures +2.75. The global tone is mixed with overseas equities mixed through the overnight; European equities are trading mixed and Asian equities are weaker. Oil is up, quoted $52. 74/ barrel this morning and treasuries are flat with the 10yr last at 2.382%. Credit is stronger with the Investment Grade Index showing 47.85/49.29 and cash is wider.

In credit news, last week’s primary market saw $29.85bn priced in Investment Grade Credit from 22 issuers, outpacing consensus estimates of $15-$20bn. Last Friday accounted for the lowest Investment Grade Trading Volume of 2017. The outlook for this week is that issuance will be light and front loaded ahead of the holidays and short week. Consensus estimates expect less than $15bn to price. There are deals announced from Tutor Perinin and Cedar Fair for today’s business.

In economic data, US Labor Market Conditions Index Change will be reported this morning.  

Friday, April 7, 2017

Corporate Bond Market

US Equity Futures are up to end the week with the DJ Futures +10 and the S&P Futures +1. The global tone is mixed with overseas mixed through the overnight with European equities mixed and Asian equities stronger. Oil is up, quoted $52.17/ barrel this morning and treasuries are stronger with the 10yr last at 2.32%. Credit is stronger with the Investment Grade Index showing 47.86/49.3 and cash is also tighter.

In credit news, the Thursday’s primary market priced $3.25bn in Investment Grade Credit from six issuers. From yesterday’s issuance, we are active in AutoZone and NY Life. The weekly tally is $29.85bn and $540.225bn YTD. High Yield YTD pricing is just above $85bn.

In economic data, there are some key announcements scheduled for today. US Unemployment, Change in Nonfarm Payrolls, and Wholesale Inventories will be reported this morning followed by Consumer Credit this afternoon.

Thursday, April 6, 2017

Corporate Bond Market

US Equity Futures are up to start the day with the DJ Futures +27 and the S&P Futures +2.75. The global tone is mixed with overseas mixed through the overnight. Oil is up, quoted $51.43/ barrel this morning and treasuries are weaker with the 10yr last at 2.352%. Credit is stronger with the Investment Grade Index showing 48.56/50 and cash is also tighter.

In credit news, the Wednesday’s primary market priced $16.2bn in Investment Grade Credit from seven issuers. Sinopec led the charge with their $3.4bn, 4 tranche deal. From yesterday’s issuance, we are active in: Sinopec, Quebec, Airbus, and UniCredit. Today’s calendar is expected to be a bit lighter.  

In economic data, Jobless Claims will be reported this morning.  

Tuesday, April 4, 2017

Corporate Bond Market

US Equity Futures are down to start the session with the DJ Futures -74 and the S&P Futures -10.50. The global tone is mixed with overseas equities mostly trading lower through the overnight. Oil is up, quoted $50.45/ barrel this morning and treasuries are a bit stronger with the 10yr last at 2.314%. Credit is wider with the Investment Grade Index showing 49.68/51.08 and cash is tighter.

In credit news, the Monday’s primary market priced $2.75bn in Investment Grade. From yesterday’s issuance, we are active in: Anglo American, Cimarex Energy, Eaton Vance, Essex Portfolio, Met Life, and Progressive. Today’s calendar is a bit light with equity futures lower.

In economic data, there are a few announcements scheduled for today. First, February’s Trade Balance and Factory Orders will be reported this morning. Following, February’s Durable Goods Orders will also be announced.

Monday, April 3, 2017

Corporate Bond Market

US Equity Futures are mixed to start the week with the DJ Futures +6 and the S&P Futures -0.75. The global tone is mixed with overseas equities also mixed through the overnight. Oil is up, quoted $50.67/ barrel this morning and treasuries are a bit weaker with the 10yr last at 2.393%. Credit is tighter with the Investment Grade Index showing 49.15/50.55 and cash is also stronger.

In credit news, the March’s primary market tallied $167.55bn in Investment Grade Credit and $510.375bn total to close out Q1. High Yield saw $40.7bn priced in March and $79.775bn YTD. Today is expected to be an active day in new issuance to begin April/Q2. There are deals announced from: Ultra Petroleum, Alliance, Indika Energy, Norilsk Nickel, Sovcomflot, and KazMunayGas for today’s business. Consensus estimates are tagging $15-25bn for this week in new Investment Grade paper.

In economic data, there are a few announcements scheduled for today. First, Markit US Manufacturing PMI and ISM Manufacturing/Prices Paid will be reported this morning. Following, February’s monthly change in Constructing Spending will be declared.  

 

Monday, March 27, 2017

Corporate Bond Market

US Equity Futures are down to start the week with the DJ Futures -134 and the S&P Futures -18.50. The global tone is weak with overseas equities trading down through the overnight with the exception of Tokyo. Oil is weaker, quoted $47.57/ barrel this morning and treasuries are stronger with the 10yr last at 2.357%. Credit is tighter with the Investment Grade Index showing 52.33/53.49 and cash is also stronger.

In credit news, last week’s primary market saw $24.075bn priced in Investment Grade Credit and $4bn in High Yield Credit. March’s Investment Grade monthly tally has risen to $104.23bn and this week is expected to bring $25-$30bn.

Thursday, March 23, 2017

Corporate Bond Market

US Equity Futures are up to start the sessions with the DJ Futures +15 and the S&P Futures +4.75. The global tone is mixed with overseas equities mixed through the overnight. Oil is stronger, quoted $48.28/ barrel this morning and treasuries are weaker with the 10yr last at 2.412%. Credit is tighter with the Investment Grade Index showing 52.33/53.49 and cash is also stronger.

In credit news, Wednesday was a light day in new issuance with the primary market pricing $5.2bn in Investment Grade Credit with Goldman Sachs leading the charge. From yesterday’s issuance, we are active in Goldman Sachs, Santander and Kimco Realty.

In economic data, US Jobless Claims and Februaries New Home Sales will be reported this morning.