Monday, June 19, 2017

Corporate Bond Market

US Equity Futures are strong to start the week with the DJ Futures +76 and the S&P Futures +8. The global tone is mostly positive through the overnight with European equities trading higher and Asian markets mixed. US Treasuries are slightly higher with yields on the 10yr last at 2.143% and crude oil is also up; last quoted $44.87/barrel. Credit is slightly weaker with the Investment Grade Index showing 43.09/44.36 and cash is a bit tighter.

In credit news, last week’s primary market saw just shy $15bn priced from domestic issuers in Investment Grade Credit; June’s tally is up to$48.9bn. The consensus for June is about $97bn in total new issue credit. From last week’s new deals, we are active in BrightHouse Financial. This week is expected to be an active week in the primary market with deals already announced from Surgery Center and Werner Finco. Consensus estimates for this week is north of $25bn.