Monday, November 7, 2016

Corporate Bond Market

US Equity Futures are strong to start the week with the DJ Futures +233 and the S&P Futures +28.5. The global tone is positive following the news of the FBI reaffirming that Clinton did not commit any crime in the handling of her emails. Overseas equities are trading higher across the board. Oil is up following OPEC Chief Mohammed Barkindo’s comments stating that Russia is on board with oil supply cuts in order to stabilize the market. Crude is quoted last at $44.50/ barrel and rates are weaker with the 10yr Treasury last at 1.81%. Credit is firm with the Invest Grade Index showing 69.9/70.7 and cash is also tighter.

In credit news, last week’s primary market saw $10.825bn priced in Investment Grade Credit and $5.31bn in High Yield. This week is expected to be light in new issuance pending tomorrow’s Presidential Election with the consensus being short of $10bn. The consensus for November is $87bn in Investment Grade Credit. Kellogg will be bringing a $600mn 7yr deal for today’s business.

In economic data, the Federal Reserve Consumer Credit Total Net Change and Average Monthly Change in Fed Labor Market Conditions will be reported this morning.