Tuesday, June 20, 2017

Corporate Bond Market

US Equity Futures are slightly weaker to start the session with the DJ Futures -13 and the S&P Futures -2.50. The global tone is mixed with European equities trading mixed and Asian markets lower through the overnight. US Treasuries are stronger with yields on the 10yr last at 2.17% and crude oil is down; last quoted $43.06/barrel. Credit is tighter with the Investment Grade Index showing 42.84/44.11 and cash is wider.

In credit news, Monday’s primary market saw $6.225bn priced from 5 issuers in Investment Grade Credit; June’s tally is up to $55.125bn. In High Yield, Intelsat and Surgery Center priced new deals yesterday. YTD High Yield issuance totals $134.36bn. From yesterday’s new deals, we are active in Argentina and FirstEnergy. Today is expected to be another active day in the primary market with deals announced from: First Quality Finance and Jackson National Life

Municipal Bond Market

Despite Treasuries being weaker on Monday, munis finished the day unchanged. All eyes were on the New York City Transitional Finance Authority’s $850 million of tax-exempt secured subordinate bonds which were brought to market by Loop Capital. The deal, which was rated Aa1 by Moody’s and AAA by S&P and Fitch, was priced for retail as 3’s to yield from 1% in 2019 to about 3.317% in 2038, a 2043 maturity was priced as 5’s to yield 2.96%, and a 2044 maturity was priced as 4’s to yield 3.27%. This week’s calendar is $11.8 billion which is composed of $7.74 billion in negotiated deals and $4.04 billion of competitive sales.