Thursday, April 13, 2017

Corporate Bond Market

US Equity Futures are all slightly lower to start the session with the S&P Futures -6.25 and the DJ Futures -32. Global  equities are trading significantly lower with all of Europe and almost all of Asia negative to start the morning. Treasuries are mostly unchanged from yesterday’s close and oil is just barely up. WTI Crude is quoted $53.20/ barrel this morning and the 10yr  is at 2.239%. Credit is again wider this morning with the Investment Grade Index showing 50.191/51.655 and cash is also slightly wider.

Yesterday’s primary market for Investment Grade saw $11bn priced from 3 emerging market issuers across 4 tranches while sovereign issues saw only $1bn from one deal. This brings April’s volume to $50.85bn and YTD volume to $561.225bn. The Kingdom of Saudi Arabia issued a total of $9bn. Some of the banks reported first quarter earnings this morning as JP Morgan and Citi beat expectations. There is no investment grade new issue supply expected today.

No economic data has been reported yet, but we will see PPI numbers and UMich Sentiment data as the day goes on.