Monday, February 13, 2017

Corporate Bond Market

US Equity Futures are strong to start the week with the DJ Futures +54 and the S&P Futures +4. The global tone is green across the board with overseas equities trading higher through the overnight. Oil is down to $53.68/ barrel and rates are weaker with the 10yr Treasury last at 2.434%. Credit is firm with the Invest Grade Index showing 56.82/57.45 and cash is also stronger.

In credit news, last week’s primary market had the slowest week this year, pricing $24.6bn in Investment Grade Credit. This week’s consensus in new issue is $15-20bn.  On the other side, High Yield had its busiest week in the primary market, pricing $10bn last week. February’s Investment Grade new issue tally is $25.05bn; YTD tally $195.13bn. There is a new deal announced from BNZ and Goldman Sachs will be Tapping their 5NC4 3% 4/26/2022, 5NC4 FRN 4/26/2022, and 10NC9 3.85% 1/26/2027 issues.