Thursday, November 17, 2016

Corporate Bond Market

US Equity Futures are flat to start the day with the DJ Futures -1 and the S&P Futures +1. The global tone is mixed with overseas equities mixed through the overnight. Oil is up to $46.10/ barrel and rates are weaker with the 10yr Treasury last at 2.24%. Credit is firm with the Invest Grade Index showing 67.4/68.2 and cash is also tighter.

In credit news, yesterday’s primary market saw $9.75bn priced in Investment Grade Credit and $2.7bn in High Yield. From yesterday’s deals, we are active in AEPT and MasterCard. This week has exceeded expectations with a $26.1bn tally. Keybanc has announced that they will be bringing a 5yr fxd/frn today.

In economic data, US Housing Starts rose 25.5% in October and the Monthly Consumer CPI is in line with 0.4% expectations. Also, Jobless Claims decreased 19,000 to the lowest level in 40 years.