Wednesday, February 15, 2017

Corporate Bond Market

US Equity Futures are flat to start the session with the DJ Futures +2 and the S&P Futures -5.  Overseas equities are mixed through the overnight with European and Asian Markets mixed. Oil is down, last at $53.04/ barrel and rates are weaker with the 10yr Treasury last at 2.511%. Credit is wider with the Invest Grade Index showing 56.384/56.937 and cash is also weaker.

In credit news, Tuesday’s primary market saw $11.9bn priced in Investment Grade Credit bringing the weekly tally to $18.6bn. There are new deals on the calendar from AECOM, Philip Morris, and MUFG. On the earnings front, Hilton and PepsiCo reported Q4 2016 earnings that outperformed analysts’ estimates. AIG and Molson Coors missed earnings expectations for Q4 2016.

In economic data, there is a list of announcements scheduled for today. First, MBA Mortgage Applications fell 3.7% last week. The cost of living in the US (Consumer Price Index) has increased by 0.6%, the most since Feb 2013. US Retail Sales grew 0.4% in January beating survey expectations of 0.1%. US Industrial Production fell 0.3% in January (underperforming survey expectations). Later today, US Foreign Net Transactions will be reported along with US Treasury International Capital Net Monthly Inflows Total.