Wednesday, Mar. 25, 2015

Corporate Bond Market
Global equities were down overnight and US equity futures were in the red as well with DJIA fut -22, S&P Fut -1.25. Oil is trading this morning at $47.74, and treasuries are up across the curve with the ten year at 1.86%.  The IG index is opening tighter again at  62-62.25.

In the news this morning 3G Capital, the Brazilian private equity firm, has agreed to acquire Kraft Foods Group in partnership with Warren Buffett's Berkshire Hathaway and merge it with H.J Heinz in a deal that will be valued at over $40 billion. Yesterday's deals included Ford (3 yr fixed and Floating, 5 yr) and XLIT ( 10yr, 30yr).


Municipal Bond Market
Munis are unchanged this morning after an extremely quiet trading day yesterday.  Volume was light for the second straight day.  Attention continues to remain on the primary market as we get into some of the week’s larger deals.   One of the most high profile deals of the week is CA Golden State tobaccos ($1.6bln), retail order pricing was met with strong demand and is set to price today.  30 day supply is mostly unchanged with $12.125bln on tap versus $12.8bln yesterday.

PR benchmarks GOs were weaker on Tuesday. Bonds traded around @ $81.25 (10.24%) after trading as high as $86.625 (9.56%) last week.  PR debt sold off as PREPA plans to meet with bondholders tomorrow to discuss extending their creditor agreement that expires next week.

30 Day visible supply: $12.125bln

Deals we will be bidding:
114mln    Anne Arundal, MD G.O. Refunding    2016-2027    Aa1/AAA
269mln    Anne Arundal, MD G.O. New Money    2016-2035    Aa1/AAA
21mln    Kitsap County, WA    2016-2031     /AA+
65mln    New Orleans, LA G.O.s *Taxables*    2016-2044    A3/A-
154mln    Port of Seatle, WA    2016-2040    Aa1/AAA


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