Tuesday, Dec. 22, 2015

Corporate Bond Market
Global equities are mixed this morning as it appears that the European Central Bank’s quantitative easing program is starting to revive the economies of the SCP block.  US Equity futures are unchanged to up slightly at the moment (DJIA Fut +20, S&P Fut +2.5).  Overseas, Europe is mixed (Euro Stoxx -0.22%), as are Asia equities (NIkkei -0.16%, Hang Seng +0.18%).  Treasuries are down across the curve with the 10yr last at 2.206%.  Oil is trading unchanged at $35.90 and gold is off a little bit to start.  The IG index is opening a touch tighter at 94.5/95.5.  Cash spreads are unchanged walking in.

There were no deals in the IG primary market yesterday and it looks like it may be over until next year.

On the economic data front, GDP Personal Consumption and Existing Home Sales are due out today. 


Municipal Bond Market
Munis are weaker this morning after a mixed trading day to start the week.  We saw light trading in the secondary yesterday as the market begins to wind down ahead of the holidays.  There were few items out for the bid and few bidders giving buyers limited options to put cash to work.  30-day supply is unchanged this morning with $2.7bn on tap over the next 30 days versus $2.77bn Monday.

PR trading remains light as the market prepares for January debt payments and more color on a PREPA restructuring.  PR benchmark 8’s of 2035 traded @ $71.525 (11.76%) on Monday after trading around the same level for most of last week.

30-Day visible supply: $2.7bn


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