Tuesday, February 28, 2017

Corporate Bond Market

US Equity Futures are down to start the session with the DJ Futures -8 and the S&P Futures -2.25. The global tone is negative with European and Asian Equities mixed through the overnight. Oil is down to 53.67/ barrel and rates are flat with the 10yr Treasury last at 2.361%. Credit is unchanged with the Invest Grade Index showing 55.01/55.56 and cash is a bit wider.

In credit news, Monday’s primary market saw $13.35bn priced in Investment Grade Credit from 13 issuers. February’s Investsment Grade new issue tally is up to $91.925bn ahead of today. From yesterday’s issuance, we are active in: Transcanada, Westar, Westpac, Schwab, Moody’s, Bank of England, and Hyundai. There are new deals announced from: AMEX, Chevron, J&J, RBC, KFW, EBRD, Kommunalbanken, Georgia Power, Discovery, and Sabine Pass Liquefaction on the calendar for today’s business. On the earnings front; Frontier, Autozone, and Target reported Q4 2016 earnings that underperformed analysts’ expectations while Valeant and Domino’s Pizza beat analysts’ estimates.

In economic data, there are a couple of announcements scheduled for today. First, Annual GDP grew 1.9% in Q4 2016 and Personal Consumption grew 3% (outpacing survey estimate of 2.6%). Following, January’s Wholesale Inventories Fell 0.1%.