Tuesday, January 31, 2017

Corporate Bond Market

US Equity Futures are down to start the day with the DJ Futures -38 and the S&P Futures -5. Overseas equities are mixed through the overnight. Oil is weaker last at $52.56/ barrel and rates are stronger with the 10yr Treasury last at 2.468%. Credit is wider with the Invest Grade Index showing 58.9/59.5 and cash is also weaker.

In credit news, yesterday’s primary market saw $17.85bn priced in Investment Grade Credit. Microsoft led the charge with their $17bn, 7-part deal. Dealer consensus calls for $15-$25bn to price this week. In the High Yield space, there are a couple of deals in the pipeline from Mercer International and Vertiv Intermediate. January’s High Yield new issue tally is $18.785b. There is one deal announced from Polyus Gold to potentially price today.

In economic data, the US Employment Cost Index for Q4, 2016 will be reported this morning.