Friday, May 13, 2016

Corporate Bond Market

US Equity Futures are slightly down to end the week with the DJ Futures -22 and the S&P Futures -1 in early trading. The global tone is mixed; European and Asian markets are both mixed through the overnight. Oil is down to $46.18 and rates are stronger with the 10yr Treasury last quoted at 1.74%. Credit is firm with the Invest Grade Index down to 81.5/82 and cash is also a bit weaker.

In credit news, today will be quiet to end a huge week in new issuance. Yesterday’s primary market saw $7.585bn priced in IG Credit $2.75bn in HY Credit. Of the new issues, we are active in: ANZ, CNL, and PPL. The weekly total has brought $53.96bn/$83.335bn MTD/$676.79bn YTD in IG. HY totals have hit $6.75bn WTD/ $10.515bn MTD/ $78.935bn YTD.

In the news, Fed’s Yellen commented on the possibility of adopting negative interest rates as a last resort in a future financial crisis.

In economic news, Retail Sales post the largest gain since 3/2015 with an advance of 1.3%, Producer Price Index Final Demand increased .2%, and Business Inventories will be announced this morning. Later today, the Fed’s Williams will be speaking.