Wednesday, April 27, 2016

Corporate Bond Market
US Equity Futures are down to start the session with the DJ Futures -44 and the S&P Futures +6 this morning. Overseas equities are mixed through the overnight European markets mixed and Asian markets showing strength. Oil is up to $44.88 this morning and rates are also up with the 10yr Treasury last at 1.90%. Credit is still feels firm though the Invest Grade Index is stronger at 74.5/75.5 this morning while cash is a slightly lower.

In credit news, IG priced $5.9b yesterday in new issuance and MTD issuance tallies $126.65bn. In HY, $1.075b priced yesterday and MTD issuance totals 24 deals for $26.18bn. Not a lot of activity expected in the new issue space today anticipating the Feds announcement.

In the news:  Ally, Apple, Capital One, Office Depot, Reynolds, Waddell & Reed, US Steel Corp, and Xerox all missed on earnings projections for Q1 earnings. Though Ally missed, core topline growth remained strong. T-Mobile, AT&T, eBay, and Twitter all outperformed analysts’ estimates. Some big names that are set to release their profits today are: Ameriprise, Facebook, NASDAQ, Hess, Marriot, BCG, Paypal, and Carlyle Group.

In economic data, the MBA announced that the US Mortgage Applications have decreased 4.1% over the past week. Following, the Monthly US Pending Home Sales will be released later this morning. In addition, the Fed will be releasing the FOMC Rate decision at 2pm. Interest rates are not expected to be raised this month, but whispers are hinting at a rate hike later in the year pending stabile economic growth.

 

Municipal Bond Market   
Munis are stronger this morning after a mixed trading day yesterday.  We saw very different tones in the primary compared to the secondary.  Demand remained extremely strong for new issue paper with some of the largest deals of the week pricing.  However, demand faded in the secondary with very few bidders as accounts continue to raise cash on the front end to put to work in longer dated new issue.  The secondary should remain light today as both dealers and customers asses their allocations from deals that priced earlier this week. 30-day supply is weaker this morning with $9bn on tap over the next 30 days versus $12bn Wednesday.

PR trading remains light as the market continues to digest news coming out of the island.  We saw a substantial amount of Childrens Tobs outfor the bid after the credit was downgraded by S&P.   We saw weak bids in the morning however p

Corporate Bond Market

US Equity Futures are down to start the session with the DJ Futures -44 and the S&P Futures +6 this morning. Overseas equities are mixed through the overnight European markets mixed and Asian markets showing strength. Oil is up to $44.88 this morning and rates are also up with the 10yr Treasury last at 1.90%. Credit is still feels firm though the Invest Grade Index is stronger at 74.5/75.5 this morning while cash is a slightly lower.

In credit news, IG priced $5.9b yesterday in new issuance and MTD issuance tallies $126.65b.  In HY, $1.075b priced yesterday and MTD issuance totals 24 deals for $26.18b. Not a lot of activity expected in the new issue space today anticipating the Feds announcement.

In the news:  Ally, Apple, Capital One, Office Depot, Reynolds, Waddell & Reed, US Steel Corp, and Xerox all missed on earnings projections for Q1 earnings. Though Ally missed, core topline growth remained strong. T-Mobile, AT&T, eBay, and Twitter all outperformed analysts’ estimates. Some big names that are set to release their profits today are: Ameriprise, Facebook, NASDAQ, Hess, Marriot, BCG, Paypal, and Carlyle Group.

 

In economic data, the MBA announced that the US Mortgage Applications have decreased 4.1% over the past week. Following, the Monthly US Pending Home Sales will be released later this morning. In addition, the Fed will be releasing the FOMC Rate decision at 2pm. Interest rates are not expected to be raised this month, but whispers are hinting at a rate hike later in the year pending stabile economic growth.

 

Municipal Bond Market   
Munis are stronger this morning after a mixed trading day yesterday.  We saw very different tones in the primary compared to the secondary.  Demand remained extremely strong for new issue paper with some of the largest deals of the week pricing.  However, demand faded in the secondary with very few bidders as accounts continue to raise cash on the front end to put to work in longer dated new issue.  The secondary should remain light today as both dealers and customers asses their allocations from deals that priced earlier this week. 30 day supply is weaker this morning with $9bln on tap over the next 30 days versus $12bln Wednesday.
 

PR trading remains light as the market continues to digest news coming out of the island.  We saw a substantial amount of Childrens Tobs outfor the bid after the credit was downgraded by S&P.   We saw weak bids in the morning however prices rebounded slightly in the afternoonwith bonds closing about a point off of the coupon on post maturities. 

30 Day visible supply: $9bln

rices rebounded slightly in the afternoonwith bonds closing about a point off of the coupon on post maturities. 

30-Day visible supply: $9bn

 

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