Tuesday, January 24, 2017

Corporate Bond Market

US Equity Futures are fairly flat to start the day with the DJ Futures +5 and the S&P Futures -0.50. The global tone is positive with overseas equities trading up through the overnight. Oil is stronger, last at $52.83/ barrel and rates are weaker with the 10yr Treasury last at 2.428%. Credit is firm with the Invest Grade Index showing 59.17/59.86 and cash is also tighter.

In credit news, yesterday’s primary market saw $$9.05bn priced in Investment Grade Credit and $350mn priced in High Yield. From yesterday’s issuance, we are active in: Goldman Sachs and UAL. There are deals announced from Nordic Investment Bank, Quebec, Morgan Stanley, EBRD, Hexion, Kernel, and Vendanta on the calendar for today’s business. Estimates call for $15-$25bn to price this week. On the earnings front; DR Horton, Fifth Third Bancorp, Union Bancshares, J&J, Kimberly Clark, Lockheed Martin, 3M and Travelers Co beat analysts’ estimates for Q4, 2016. On the other side; Verizon, Polaris, and Janus Capital missed Wall Street’s expectations.

In economic data, today has a couple of reports on the agenda. First, the Markit US Manufacturing PMI for January well be announced followed by December’s monthly change in Existing Home Sales.