Tuesday, February 21, 2016

Corporate Bond Market

US Equity Futures are up to start the week with the DJ Futures +59 and the S&P Futures +4.  The global tone is positive with overseas equities trading higher through the overnight with the exception of London. Oil is up to 54.25/ barrel and rates are off 10+ with the 10yr Treasury last at 2.452%. Credit is firm with the Invest Grade Index at 55.99/56.63 and cash is also tighter.

In credit news, last week’s primary market saw $25.05bn priced in Investment Grade Credit and $1.755bn in High Yield. On the earnings front, HSBC severely missed earnings estimates for Q4 2016 reporting: 10.23% miss in Adjusted EPS, 5.21% underperformance in Revenue, and the bank was off 6.74% in Adjusted Net Income. On the US Retail side: Macys, Wal-Mart, and Home Depot all beat analysts’ expectations for Q4 2016.

In economic data: Markit US Manufacturing PMI, Markit US Services PMI, and Markit US Composite PMI for February will be reported this morning.