Wednesday, March 8, 2017

Corporate Bond Market

US Equity Futures are down to start the day with the DJ Futures -12 and the S&P Futures -1.50. Overseas equities are mixed through the overnight with European markets mostly lower and Asian markets mixed. Oil is weaker, quoted $52.62/ barrel this morning and treasury yields are up with the 10yr last at 2.542%. Credit is weaker with the Investment Grade Index showing 54.88/55.49 and cash is also wider.

In credit news, yesterday was another heavy day in new issuance. The Investment Grade primary market saw $16.6b priced with Siemens leading the charge. In the High Yield space, the weekly tally has risen to $5.85b and $50b YTD. From yesterday’s new issue, we are active in: Siemens, Pacific Gas, and Southern National Gas. There are deals announced from: Africa Development Bank, Akbank, Foresight Energy, SemGroup, Southern Gas Corridor, Municipality Finance, and WellCare Health for today.

In economic data, Mortgage Applications grew 3.3% last week. ADP National Jobs report will be announced this morning with the forecast set at 187k. Also, Wholesale Inventories will be reported this morning.