Wednesday, October 26, 2016

Corporate Bond Market

US Equity Futures are down to start the session with the DJ Futures -61 and the S&P Futures -8. The global tone is weak as international equity markets traded lower through the overnight. Oil is down, last at $49.18/ barrel and rates are weaker with the 10yr Treasury last at 1.777%. Credit is wider with the Invest Grade Index showing 67.9/68.6 and cash is also down.

In the news, AKS posted a strong 3Q16, with EBITDA coming in at $157 mn, up 31% YoY. Adjusted EBITDA exceeded the $140 mn consensus estimate.

In credit news, Tuesday’s primary market saw $4.9bn priced in Investment Grade Credit. The weekly consensus is $20-30bn in Investment Grade and $3bn in High Yield. Today will be a heavy day in new issuance with deals from: American Express, Centene, Danone, Daimler AG, Lukoil, Live Nation, and ServiceMaster so far with more names expected to come.

In economic data, Mortgage Applications fell 4.1% last week. September’s tally of wholesale inventories grew 0.2% and retail inventories rose 0.3%.