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.

Wednesday, March 22, 2017

Corporate Bond Market

US Equity Futures are down to start the day with the DJ Futures -56 and the S&P Futures -4. The global tone is mixed with European equities trading lower and Asian markets mixed. Oil is weaker, quoted $47.58/ barrel this morning and treasuries are fairly flat with the 10yr last at 2.414%. Credit is tighter with the Investment Grade Index showing 52.33/53.49 and cash is weaker.

In credit news, Tuesday’s primary market saw $11.25bn priced in Investment Grade Credit with ING and Medtronic leading the charge. From yesterday’s issuance, we are active in: BlackRock, ING, Medtronic, Glencorene, Genpact, Southern Cal Edison, and Shinhan Bank. There are deals announced from Indonesia and Ascent Resources so far for today. Last, ING Groep NV, the biggest Dutch bank, is under criminal investigation associated with corruption and money laundering. It is said that the firm may face large penalties if found guilty.

In economic data, US Mortgage Applications fell 2.7% last week. Later this morning, the change in FHFA House Price Index will be reported along with Februaries tally of Existing Home Sales.

Tuesday, March 21, 2017

Corporate Bond Market

US Equity Futures are up to start the session with the DJ Futures +20 and the S&P Futures +5. The global tone is positive with overseas equities mostly higher through the overnight. Oil is stronger, quoted $48.58/ barrel this morning and treasuries are weaker with the 10yr last at 2.492%. Credit is tighter with the Investment Grade Index showing 52.33/53.49 and cash is a stronger.

In credit news, Monday’s primary market saw $4.625bn priced in Investment Grade Credit with Heineken accounting for almost half of that tally. We are active in both new Heineken 10yr and 30yr issues. There are deals announced from DNB Boligkreditt AS, KCA Deutag UK, ING Groep, and Shinhan Bank for today’s business.

In economic data, US Nominal Account Balance will be reported this morning.

Monday, March 20, 2017

Corporate Bond Market

US Equity Futures are down to start the week with the DJ Futures -3 and the S&P Futures -2.5. Overseas equities are mostly lower through the overnight with European equities trading down and Asian markets mixed. Oil is weaker, quoted $48.03/ barrel this morning and treasuries are unchanged with the 10yr last at 2.502%. Credit is tighter with the Investment Grade Index showing 52.33/53.49 and cash is a bit wider.

In credit news, last week’s primary market saw $42.85bn priced in Investment Grade Credit and $6.35bn in High Yield. Energy and MLP posted the best sector moves in Investment Grade spreads last week. There was $5.8bn in High Yield outflows last week followed by $2.12bn the week before.

In economic data, US February Chicago National Activity tallied 0.34; surpassing survey expectations.

Thursday, March 16, 2017

Corporate Bond Market

US Equity Futures are up to start the session with the DJ Futures +61 and the S&P Futures +6. Overseas equities are stronger through the overnight with European and Asian Equity Markets trading higher. Oil is up, quoted $49.24/ barrel this morning and treasuries are weaker with the 10yr last at 2.528%. Credit is stronger with the Investment Grade Index showing 52.57/53.30 and cash is also tighter.

In credit news, yesterday was a quiet day in the primary market with the Fed’s announcement. Investment Grade new issuance has seen $19.28b priced this week in line with majority estimates; $78.50bn for March. In the High Yield space, Eldorado resorts priced yesterday, bringing MTD volume above $25bn marking the busiest month since September. There are deals announced from: APA Group, Gazprom, Scentre Group, UBS, and Quantum Minerals for today’s business.

In economic data, the Fed raised interest rates .25 with their sights on two more rate hikes this year. Today, Februaries Housing Starts and Building Permits will be announced. Following, Jobless Claims will be reported.

Wednesday, March 8, 2017

Corporate Bond Market

US Equity Futures are down to start the day with the DJ Futures -12 and the S&P Futures -1.50. Overseas equities are mixed through the overnight with European markets mostly lower and Asian markets mixed. Oil is weaker, quoted $52.62/ barrel this morning and treasury yields are up with the 10yr last at 2.542%. Credit is weaker with the Investment Grade Index showing 54.88/55.49 and cash is also wider.

In credit news, yesterday was another heavy day in new issuance. The Investment Grade primary market saw $16.6b priced with Siemens leading the charge. In the High Yield space, the weekly tally has risen to $5.85b and $50b YTD. From yesterday’s new issue, we are active in: Siemens, Pacific Gas, and Southern National Gas. There are deals announced from: Africa Development Bank, Akbank, Foresight Energy, SemGroup, Southern Gas Corridor, Municipality Finance, and WellCare Health for today.

In economic data, Mortgage Applications grew 3.3% last week. ADP National Jobs report will be announced this morning with the forecast set at 187k. Also, Wholesale Inventories will be reported this morning.  

Tuesday, March 7, 2017

Corporate Bond Market

US Equity Futures are off to start the session with the DJ Futures -20 and the S&P Futures -3. Overseas equities are mixed through the overnight with Asian and European equity markets mixed. Oil is stronger, quoted $53.43/ barrel this morning and rates are unchanged with the 10yr Treasury last at 2.502%. Credit is weaker with the Investment Grade Index showing 53.61/54.25 and cash is also wider.

In credit news, yesterday was a heavy day in new issue credit. The Investment Grade primary market saw $22.65b priced from 11 issuers with Great Plains Energy and McDonald’s leading the charge. In the High Yield space, deals were priced from Air Castle, Olin, and Vermilion Energy. From yesterday’s new issuance, we are active in: Great Plans Energy, McDonalds, Common Capital One Financial, HSBC, Enable Midstream, and Common Bank Australia. There are deals announced from: Beazer, Community Health, Crestwood Midstream, Hilton Worldwide, Huntington National Bank, Siemens, Sonic Auto, Southern Natural Gas, and Municipality Finance for today’s business.

In economic data, US Trade Deficit is tallied at $48.5b to match forecast. Later today, Federal Reserve Consumer Credit will be reported.

Monday, March 6, 2017

Corporate Bond Market

US Equity Futures are down to start the week with the DJ Futures -25 and the S&P Futures -5.50. Overseas equities are mixed through the overnight with European equity markets mostly lower. Oil is weaker, quoted $52.98/ barrel this morning and rates are a bit stronger with the 10yr Treasury last at 2.47%. Credit is weaker with the Investment Grade Index showing 52.25/53.23 and cash is wider.

In credit news, last week’s primary market saw $58.325bn priced in Investment Grade Credit accounting for the 2nd highest weekly sales this year; YTD issuance has topped $272.58bn in the space. $5bn was priced in High Yield to start March; bringing the YTD tally just shy of $45bn. From Friday’s issuance, we are active in Cyrus One.

In economic data; January Factory Orders, Durable Goods Orders, and Capital Goods Orders will all be reported this morning.

Friday, March 3, 2017

Corporate Bond Market

US Equity Futures are down to start the day with the DJ Futures -7 and the S&P Futures -4.75. Overseas equities are mixed through the overnight. Oil is up to 52.66/ barrel and rates are weaker with the 10yr Treasury last at 2.5%. Credit is stronger with the Invest Grade Index showing 52.65/53.18 and cash is wider.

In credit news, yesterday’s primary market saw $4.9bn priced in Investment Grade Credit from 6 issuers bringing the weekly total to $57.075bn. From yesterday’s issuance, we are active in: Physicians Realty, Navient, JPM, and Goodyear Tire. There are new deals announced from: CyrusOne, IAMGOLD, and Morgan Stanley.  

Thursday, March 2, 2017

Corporate Bond Market

US Equity Futures are up to start the day with the DJ Futures +21 and the S&P Futures -1. Overseas equities are mixed through the overnight. Oil is down to 53.04/ barrel and rates are weaker with the 10yr Treasury last at 2.472%. Credit is stronger with the Invest Grade Index showing 52.17/52.71 and cash is tighter.

In credit news, yesterday’s primary market saw $15.375bn priced in Investment Grade Credit from 10 issuers. From yesterday’s issuance, we are active in: Disney, Brixmor, Telefonica, and Macquarie Bank. There are new deals announced from: JP Morgan, Swedish Export Credit, Goodyear Tire, Howard Hughes, Comm Scope, Ladder Capital, Navient and Mongolia on the calendar for today’s business.

In economic data, Initial Jobless Claims were less than expected for February and Continuing Claims were slightly higher than the survey estimate. Later, Bloomberg Consumer Comfort Index will be reported.

Wednesday, March 1, 2017

Corporate Bond Market

US Equity Futures are strong to start the session with the DJ Futures +109 and the S&P Futures +13.50. The global tone is positive with European and Asian Equities trading higher through the overnight. Oil is up to 54.16/ barrel and rates are weaker with the 10yr Treasury last at 2.428%. Credit is stronger with the Invest Grade Index showing 53.60/54.14 and cash is tighter.

In credit news, yesterday’s primary market saw about $13bn priced in Investment Grade Credit bringing the new issue tally to $115.375bn for the month. February’s High Yield issuance was $20.05bn. From yesterday’s issuance, we are active in: Georgia Power, American Express, JNJ, and Chevron. There are new deals announced from: Macquarie Bank, Bank of Nova Scotia, Vermillion Energy, Air Lease, Blueline Rental, and Oman on the calendar for today’s business. On the earnings front; Lowes, Best Buy, Dollar Tree, and Mylan reported Q4 2016 earnings that outperformed analysts’ expectations.


In economic data, there are a couple of announcements scheduled for today. First, Mortgage Applications grew 5.8% last week. Personal Income grew 0.4% in January outperforming survey estimates of 0.3% and Personal Spending grew less than expected at 0.2%. Later today, US Manufacturing PMI will be reported along with the change in monthly Construction Spending.

Tuesday, February 28, 2017

Corporate Bond Market

US Equity Futures are down to start the session with the DJ Futures -8 and the S&P Futures -2.25. The global tone is negative with European and Asian Equities mixed through the overnight. Oil is down to 53.67/ barrel and rates are flat with the 10yr Treasury last at 2.361%. Credit is unchanged with the Invest Grade Index showing 55.01/55.56 and cash is a bit wider.

In credit news, Monday’s primary market saw $13.35bn priced in Investment Grade Credit from 13 issuers. February’s Investsment Grade new issue tally is up to $91.925bn ahead of today. From yesterday’s issuance, we are active in: Transcanada, Westar, Westpac, Schwab, Moody’s, Bank of England, and Hyundai. There are new deals announced from: AMEX, Chevron, J&J, RBC, KFW, EBRD, Kommunalbanken, Georgia Power, Discovery, and Sabine Pass Liquefaction on the calendar for today’s business. On the earnings front; Frontier, Autozone, and Target reported Q4 2016 earnings that underperformed analysts’ expectations while Valeant and Domino’s Pizza beat analysts’ estimates.


In economic data, there are a couple of announcements scheduled for today. First, Annual GDP grew 1.9% in Q4 2016 and Personal Consumption grew 3% (outpacing survey estimate of 2.6%). Following, January’s Wholesale Inventories Fell 0.1%.

Monday, February 27, 2017

Corporate Bond Market

US Equity Futures are flat to start the week with the DJ Futures -6 and the S&P Futures -1. The global tone is negative with European Equities mixed and Asian Equities trading lower through the overnight. Oil is up to 54.36/ barrel and rates are weaker with the 10yr Treasury last at 2.329%. Credit is wider with the Invest Grade Index at 55.48/56.01 and cash is also weaker.

In credit news, last week’s primary market saw $14.925bn priced in Investment Grade and $2.8 in High Yield Credit. There are new deals announced from: Cheniere Energy, Con Ed, EBRD, Bank of England, Westar, Westpac, Hyundai, Sumi Trust, and Textron for today. On the earnings front, Hertz, Frontier, Priceline, and Tenet Health will be reporting Q4 2016 earnings today.

In economic data, January’s Durable and Capital Goods Orders will be announced followed by January’s Pending Home Sales.   

Friday, February 24, 2017

Corporate Bond Market

US Equity Futures are down to end the week with the DJ Futures -76 and the S&P Futures -9.50. The global tone is negative with overseas equities trading down through the overnight. Oil is down to 54.03/ barrel and rates are stronger with the 10yr Treasury last at 2.361%. Credit is wider with the Invest Grade Index at 55.75/56.33 and cash is also weaker.

In credit news, yesterday’s primary market saw $4.05bn priced in Investment Grade Credit; $14.925bn WTD. From yesterday’s new issuance, we are active in Viacom. On the earnings front: Intuit, Nordstrom, HP, JC Penny, and Footlocker outperformed analysts’ estimates for Q4 2016. There is a $300m add-on in High from Transdigm on the calendar for today.

In economic data, January’s tally of New Home Sales will be reported this morning.  

Thursday, February 23, 2017

Corporate Bond Market

US Equity Futures are up to start the session with the DJ Futures +15 and the S&P Futures +1.50. The global tone is mixed with overseas equities mixed through the overnight. Oil is up to 54.38/ barrel and rates are stronger with the 10yr Treasury last at 2.395%. Credit is firm with the Invest Grade Index showing 55/55.6 and cash is also tighter.

In credit news, yesterday’s primary market saw $5.725bn priced in Investment Grade Credit. From yesterday’s new issuance, we are active in Mizuho and Chimera Investment Corp. On the earnings front, Popeye’s, Kohl’s, and Tesla outperformed analysts’ estimates for Q4 2016. There are new deals announced from CDW Corp and Banske Bank for today’s business.

In economic data, Jobless Claims and the monthly change in FHFA House Price Index will be reported today.

Wednesday, February 22, 2017

Corporate Bond Market

US Equity Futures are down to start the day with the DJ Futures -11 and the S&P Futures -3.50. The global tone is mixed with overseas equities mixed through the overnight. Oil is down to 54.03/ barrel and rates are stronger with the 10yr Treasury last at 2.411%. Credit is wider with the Invest Grade Index showing 56.28/56.89 and cash is also tighter.

In credit news, yesterday’s primary market saw $5.15bn priced in Investment Grade Credit. From yesterday’s new issuance, we are active in LYB International Finance and Parker-Hannifin. On the earnings front Southern Co and Toll Bros outperformed analysts’ estimates for Q4 2016. There are new deals announced from Bristol Meyers Squibb, Mizuho and United Rentals on the calendar for today.  


In economic data: MBA Mortgage Applications, Existing Home Sales, and FOMC Meeting Minutes will be announced today.

Tuesday, February 21, 2016

Corporate Bond Market

US Equity Futures are up to start the week with the DJ Futures +59 and the S&P Futures +4.  The global tone is positive with overseas equities trading higher through the overnight with the exception of London. Oil is up to 54.25/ barrel and rates are off 10+ with the 10yr Treasury last at 2.452%. Credit is firm with the Invest Grade Index at 55.99/56.63 and cash is also tighter.

In credit news, last week’s primary market saw $25.05bn priced in Investment Grade Credit and $1.755bn in High Yield. On the earnings front, HSBC severely missed earnings estimates for Q4 2016 reporting: 10.23% miss in Adjusted EPS, 5.21% underperformance in Revenue, and the bank was off 6.74% in Adjusted Net Income. On the US Retail side: Macys, Wal-Mart, and Home Depot all beat analysts’ expectations for Q4 2016.

In economic data: Markit US Manufacturing PMI, Markit US Services PMI, and Markit US Composite PMI for February will be reported this morning.

Friday, February 17, 2017

Corporate Bond Market

US Equity Futures are down to end the week with the DJ Futures -50 and the S&P Futures -5.75.  The global tone is negative with European equity markets mixed and Asian stocks trading down through the overnight. Oil is down, last at $53.08/ barrel and rates are stronger with the 10yr Treasury last at 2.418%. Credit is wider with the Invest Grade Index showing 57.298/57.917 and cash is also weaker.

In credit news, Thursday’s primary market was light ahead of the long weekend; pricing $800mn Investment Grade Credit. On the earnings front, Fannie Mae and Deere Co reported an underperformance of Q4 2016 earnings expectations.

 

Thursday, February 16, 2017

Corporate Bond Market

US Equity Futures are down to start the session with the DJ Futures -39 and the S&P Futures -4.75.  The global tone is negative with overseas equities mixed through the overnight. Oil is up, last at $53.35/ barrel and rates are stronger with the 10yr Treasury last at 2.474%. Credit is wider with the Invest Grade Index showing 56.474/57.059 and cash is also weaker.

In credit news, Wednesday’s primary market saw $5.65bn priced in Investment Grade Credit bringing the weekly tally to $24.25bn. From yesterday’s issuance, we are active in CMS, MUFG, and PM. On the earnings front: Alexion Pharma, Charter, Kate Spade, Lab Corp, and MGM reported Q4 2016 earnings that outperformed analysts’ estimates. Cabela’s and GNC missed earnings expectations for Q4 2016.


In economic data, January’s Housing Starts and Jobless Claims will be announced today.

Wednesday, February 15, 2017

Corporate Bond Market

US Equity Futures are flat to start the session with the DJ Futures +2 and the S&P Futures -5.  Overseas equities are mixed through the overnight with European and Asian Markets mixed. Oil is down, last at $53.04/ barrel and rates are weaker with the 10yr Treasury last at 2.511%. Credit is wider with the Invest Grade Index showing 56.384/56.937 and cash is also weaker.

In credit news, Tuesday’s primary market saw $11.9bn priced in Investment Grade Credit bringing the weekly tally to $18.6bn. There are new deals on the calendar from AECOM, Philip Morris, and MUFG. On the earnings front, Hilton and PepsiCo reported Q4 2016 earnings that outperformed analysts’ estimates. AIG and Molson Coors missed earnings expectations for Q4 2016.


In economic data, there is a list of announcements scheduled for today. First, MBA Mortgage Applications fell 3.7% last week. The cost of living in the US (Consumer Price Index) has increased by 0.6%, the most since Feb 2013. US Retail Sales grew 0.4% in January beating survey expectations of 0.1%. US Industrial Production fell 0.3% in January (underperforming survey expectations). Later today, US Foreign Net Transactions will be reported along with US Treasury International Capital Net Monthly Inflows Total.