Monday, May 15, 2017

Corporate Bond Market

US Equity Futures are up to start the session with the DJ Futures +41 and the S&P Futures +3. Overseas equity markets are mixed through the overnight with European and Asian markets mixed. US Treasuries are down with yields on the 10 yr last at 2.334% and oil is up, last quoted $49.29/barrel. Credit is wider with the Investment Grade Index showing 44.68/45.11 and cash is stronger.

In credit news, last week’s primary market saw $39.17bn priced in Investment Grade Credit. YTD volume Today is expected to be a busy day in the primary market with deals already announced from: HSBC, Wells Fargo, Australia & New Zealand Banking Group, BPCE, and Cheniere Energy with more to come.

In economic data, May’s Empire Manufacturing will be reported this morning followed by NAHB Housing Market Index and Foreign Net Transactions.

Municipal Bond Market

Munis will see another big week in issuance as $7.17 bn of negotiated deals and $1.62 bn of competitive sales are expected to hit the market. Morgan Stanley is set to price $1.08 bn in GO refunding and ad valorem property tax bonds for the Los Angeles Unified School District on Tuesday. The deal, which is rated Aa2 by Moody’s and AAA by Fitch, will be the largest of the week. Wells Fargo is expected to price $665 million of NY Dorm Authority revenue tax-exempt and taxable bonds for NYU on Tuesday. This deal, which is ratedAa2 by Moody’s and AA- by S&P, will come to market as Series A tax-exempt bonds maturing from 2019-2038 including a term bond in 2043 and Series B taxable bonds maturing in 2019 through 2032 including terms in 2039 and 2047. Last but not least, Siebert Cisneros Shank & Co will price $576.415 million of GO refunding bonds on Wednesday for the District of Columbia in a deal that is rated Aa1 by Moody’s and AA by S&P and Fitch and expected to mature from 2019 through 2037.