Wednesday, Dec. 23, 2015

Corporate Bond Market
European and Asia equities are up today amid growing investor confidence in the US and Chinese economies (Stoxx +1.85% and Hang Seng +.96%).  US futures are opening higher this morning (DJIA +89 and S&P +7.25).  Treasuries are off this morning with the 10yr at 2.250%.  Credit is opening tighter this morning with the IG Index +1.55 at 90.15/91.4.  Oil is better this morning and is trading at $36.77/bbl.

In corporate news, Cliffs Natural Resources announced that it had closed the sale of its remaining coal business to Seneca Coal Resources. Cliffs valued the transaction at closing at $268mln.  Seneca may also pay Cliffs at earn out  $50mln .

Economic data: Personal Income and Durable Goods (8:30am), New Home Sales and Univ. of Michigan Sentiment (10:00am). 


Municipal Bond Market
Munis are weaker this morning for the second straight day.  We continue to see extremely light trading ahead of the holidays with most desks preparing for year end.  30-day supply is stronger this morning with $3.7bn on tap over the next 30 days versus $2.77bn Tuesday.

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 @ $71.00 (11.84%) on Tuesday after trading around the same level for most of last week.

30-Day visible supply: $3.7bn


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