Tuesday, February 14, 2017

Corporate Bond Market

US Equity Futures are relatively flat to start the day with the DJ Futures -4 and the S&P Futures -0.50.  Overseas equities are mixed through the overnight with European Markets mixed and Asian Markets trading up. Oil is up, last at $53.41/ barrel and rates are weaker with the 10yr Treasury last at 2.443%. Credit is wider with the Invest Grade Index showing 56.282/56.942 and cash is also weaker.

In credit news, Monday’s primary market saw $6.7bn priced in Investment Grade Credit. This week’s estimate consensus is $15-$20bn in new issuance. There are new deals on the calendar from JP Morgan, Morgan Stanley, Novartis and JBIC. On the earnings front, T-Mobile and Discovery Communications reported Q4 2016 earnings that outperformed analysts’ estimates. There are a handful of earnings calls set for today from: AIG, Molson Coors, Rent-A-Center, Devon Energy, Diamondback Energy, Express Scripts, and a few others. 

In economic data, there are a few announcements scheduled for today with the top headline being Fed Chair Yellen’s semi-annual Congressional testimony. First, NFIB Small Business Optimism Index beat survey estimates reporting 105.9 for January. Following, Jan’s Producer Price Index will be announced this morning (survey estimate 0.3%).