Tuesday, February 7, 2017

Corporate Bond Market

US Equity Futures are up to start the session with the DJ Futures +60 and the S&P Futures +6. The global trend is positive with overseas equities trading higher through the overnight. Oil is down to $52.78/ barrel and rates are weaker with the 10yr Treasury last at 2.423%. Credit is firm with the Invest Grade Index showing 57.05/57.71 and cash is also stronger.

In credit news, yesterday’s primary market saw $6.2bn priced in Investment Grade Credit with financials leading the way. Monday’s High Yield issuance was active with $6.05bn brought to market. From yesterday’s issuance, we are active in: Amerigas, GATX, Estee Lauder, Discover, and First Republic Bank. There are a handful of deals for today from: KFW, Dexia, Silgan, EIB, BNG, and Citigroup.

On the earnings front: Aramark, Cardinal Health, General Motors, Mallinckrodt, Mosaic, and Transdigm reported performance that beat Wall St’s estimates for Q4 2016 this morning.

In economic data, US Trade Balance for December 2016 will be reported this morning followed by Job Openings and Consumer Credit.