Friday, October 21, 2016

Corporate Bond Market

US Equity Futures down to start the session with the DJ Futures -57 and the S&P Futures -6.25. The global tone is mixed with overseas equity markets trading mixed through the overnight. Oil is up, last at $50.90 barrel and rates are stronger with the 10yr Treasury last at 1.751%. Credit is wider with the Investment Grade Index showing 67/67.75 and cash is also weaker.

In credit news, yesterday’s primary market saw a large drop off from Wednesday. $5.65bn was priced in Investment Grade Credit, bringing October’s tally to $105.355bn. Monthly volume has exceeded consensus expectations of $100bn and spreads remained at YTD tight levels. Thursday brought $800mn in new issue High Yield Credit; bringing the weekly total to $2.2bn and $6.47bn MTD.