Monday, July 17, 2017

Corporate Bond Market

US Equity Futures are up higher to start the week with the DJ Futures +16, S&P Futures +2.50 and NASDAQ Futures +12.50. The global tone is mixed with European equities stronger and Asian markets mixed. US Treasuries are stronger with yields on the 10yr last at 2.307% and crude oil unchanged last quoted $46.54/barrel. Credit is a bit tighter with the Investment Grade Index showing 40.65/41.99 and cash is also stronger.

In credit news, last week’s primary market saw a total of $36.74b; $26.49b sans SAS priced in Investment Grade Credit. The monthly tally has risen to $43.99bn; $32.24bn sans SAS. For 2017, we have reached $930.575b; $746.385b sans SAS. There are deals set to price from: Citi, JP Morgan, Wells Fargo, Greenko, Kyobo Life and Kingdom of Sweden following the blackout period.

On the earnings front, the first wave of banks reported late last week.  Citigroup, Wells Fargo, PNC and JPM all reported earnings that beat analysts’ estimates for Q2. On the other end, First Republic and Blackrock underperformed in Q2.

In economic data, July’s Empire Manufacturing Survey will be reported this morning.