Tuesday, March 7, 2017

Corporate Bond Market

US Equity Futures are off to start the session with the DJ Futures -20 and the S&P Futures -3. Overseas equities are mixed through the overnight with Asian and European equity markets mixed. Oil is stronger, quoted $53.43/ barrel this morning and rates are unchanged with the 10yr Treasury last at 2.502%. Credit is weaker with the Investment Grade Index showing 53.61/54.25 and cash is also wider.

In credit news, yesterday was a heavy day in new issue credit. The Investment Grade primary market saw $22.65b priced from 11 issuers with Great Plains Energy and McDonald’s leading the charge. In the High Yield space, deals were priced from Air Castle, Olin, and Vermilion Energy. From yesterday’s new issuance, we are active in: Great Plans Energy, McDonalds, Common Capital One Financial, HSBC, Enable Midstream, and Common Bank Australia. There are deals announced from: Beazer, Community Health, Crestwood Midstream, Hilton Worldwide, Huntington National Bank, Siemens, Sonic Auto, Southern Natural Gas, and Municipality Finance for today’s business.

In economic data, US Trade Deficit is tallied at $48.5b to match forecast. Later today, Federal Reserve Consumer Credit will be reported.