Monday, April 3, 2017

Corporate Bond Market

US Equity Futures are mixed to start the week with the DJ Futures +6 and the S&P Futures -0.75. The global tone is mixed with overseas equities also mixed through the overnight. Oil is up, quoted $50.67/ barrel this morning and treasuries are a bit weaker with the 10yr last at 2.393%. Credit is tighter with the Investment Grade Index showing 49.15/50.55 and cash is also stronger.

In credit news, the March’s primary market tallied $167.55bn in Investment Grade Credit and $510.375bn total to close out Q1. High Yield saw $40.7bn priced in March and $79.775bn YTD. Today is expected to be an active day in new issuance to begin April/Q2. There are deals announced from: Ultra Petroleum, Alliance, Indika Energy, Norilsk Nickel, Sovcomflot, and KazMunayGas for today’s business. Consensus estimates are tagging $15-25bn for this week in new Investment Grade paper.

In economic data, there are a few announcements scheduled for today. First, Markit US Manufacturing PMI and ISM Manufacturing/Prices Paid will be reported this morning. Following, February’s monthly change in Constructing Spending will be declared.