Browsing articles tagged with "Informa Global Markets Archives - Mischler Financial Group"
US Corporate Debt Issuers Return From Sidelines; USD 10b Floated
March 2017      Debt Market Commentary   

Quigley’s Corner 03.28.17   They’re Back! US Corporate Debt Issuers Return After Multi-Day No-Go Signal

 

Investment Grade Corporate Debt New Issue Re-Cap – What a Difference a Day Makes

IG Primary & Secondary Market Talking Points

Global Market Recap

Syndicate IG Corporate-only Volume Estimates for This Week and March

NICs, Bid-to-Covers, Tenors, Sizes and Average Spread Compression from IPTs thru Launches

New Issues Priced

Indexes and New Issue Volume

Lipper Report/Fund Flows – Week ending March 22nd       

IG Credit Spreads by Rating

IG Credit Spreads by Industry

New Issue Pipeline

M&A Pipeline

Economic Data Releases

Rates Trading Lab

Tomorrow’s Calendar

 

7 IG Corporate issuers tapped the IG dollar DCM today pricing 15 tranches between them totaling $10.90b.  1 SSA issuer, the Export Development of Canada, added a $500mm 2-year to the mix for an all-in IG day total of 8 issuers, 16 tranches and $11.40b.

  • The IG Corporate only WTD total is now 43% of the syndicate midpoint average forecast or $11.40b vs. $26.50b.
  • MTD, today we officially surpassed the high-, mid-point and low-end averages for March.  We are more than 4% above the IG Corporate mid-range syndicate projection for all of March or $119.248b vs. $114.31b. (scroll to the table below).
  • The all-in MTD total (IG Corporates plus SSA) now stands at $152.158b.
  • Both CDX IG and HV tightened, the VIX also pulled 1 point and the S&P and DOW gained ending an 8 day losing streak – the most since 20011.

IG Primary & Secondary Market Talking Points

 

  • Ford Motor Credit Corp. today dropped the 2yr FRN tranche from its 2- and 5-year FXD/FRN having found sufficient 2yr interest in the fixed rate tranche. The other 3 tranches all launched at the tightest side of guidance.
  • The average spread from IPTs and/or guidance thru the launch/final pricing of today’s 15 IG Corporate-only new issues was <20.87> bps.
  • BAML’s IG Master Index was unchanged at +123.  +106 represents the post-Crisis low dating back to July 2007.
  • Bloomberg/Barclays US IG Corporate Bond Index OAS was unchanged at 1.18.
  • Standard & Poor’s Investment Grade Composite Spread widened 1 bp to +165 vs. +164.  The +140 reached on July 30th 2014 represents the post-Crisis low.
  • Investment grade corporate bond trading posted a final Trace count of $13.9b on Monday versus $13.8b on Friday and $13.8b the previous Monday.
  • The 10-DMA stands at $17.1b.

 

Global Market Recap

 

  • U.S. Treasuries – Poor day for USTs because of stocks, supply, economic data, USD & Trump.
  • Overseas Bonds – JGB’s down except 30yr. Bunds little changed, Gilts red & peripherals bid.
  • Stocks –  Rally in U.S. stocks. The Dow snapped its 8-session losing streak.
  • Overseas Stocks – Japan rallied, China closed down & Europe had a good day.
  • Economic – Positive U.S. data with consumer confidence off the charts strong.
  • Overseas Economic – Light calendar overseas today.
  • Currencies – U.S. came roaring back today. The DXY Index improved 1/2 handle.
  • Commodities – Crude oil, copper & silver improved while gold sold off.
  • CDX IG: -0.63 to 67.17
  • CDX HY: -7.0 to 347.24
  • CDX EM: -0.23 to 213.16

*CDX levels are as of 3:30PM ET today.

-Tony Farren

 

Syndicate IG Corporate-only Volume Estimates for This Week and March

 

IG Corporate New Issuance This Week
3/27-3/31
vs. Current
WTD – $11.40b
March 2017
Forecasts
vs. Current
MTD – $119.248b
Low-End Avg. $25.25b 45.15% $113.79b 104.80%
Midpoint Avg. $26.50b 43.02% $114.31b 104.32%
High-End Avg. $27.75b 41.08% $114.83b 103.85%
The Low $15b 76.00% $80b 149.06%
The High $31b 36.77% $140b 85.18%

 
Below please find my synopsis of everything Syndicate and Secondary from today’s debt capital markets, including the investment grade corporate bond data drill down as seen from my seat here in Syndicate, Sales and DCM.

 

Have a great evening!
Ron Quigley, Managing Director and Head of Fixed Income Syndicate

 

NICs, Bid-to-Covers, Tenors, Sizes and Average Spread Compression from IPTs thru Launches

 

Here’s a review of this week’s five key primary market driver averages for IG Corporates only through Monday’s session followed by the averages over the prior six weeks:

(more…)

IG Debt Market Issuers Confounded By Dysfunction Junction; Mischler Debt Market Comment
March 2017      Debt Market Commentary   

Quigley’s Corner 03.23.17 –Dysfunction Junction

 

A Very Important Message

Investment Grade Corporate Debt New Issue Re-Cap – “Dysfunction Junction”

IG Primary & Secondary Market Talking Points

Global Market Recap

Syndicate IG Corporate-only Volume Estimates for This Week and March

NICs, Bid-to-Covers, Tenors, Sizes and Average Spread Compression from IPTs thru Launches

Indexes and New Issue Volume

Lipper Report/Fund Flows – Week ending March 22th      

IG Credit Spreads by Rating

IG Credit Spreads by Industry

New Issue Pipeline

M&A Pipeline

Economic Data Releases

Rates Trading Lab –Courtesy of Jim Levenson

Tomorrow’s Calendar

 

 Important Message to all “QC” readers:  Before we dive into the session  details re: today’s corporate debt issuance, I’d like to call your attention to a very important message from one the Fixed Income Syndicate world’s truly good people, Greg Baker of Bank of America/Merrill Lynch.  Greg is going to be competing in his third 140.6 IRONMAN challenge to raise money for a critically important cause. Without further ado I will hand it over to Greg to tell you more about it. 

 

Dear Friends,

I will be participating in IRONMAN Lake Placid on July 23rd, 2017 as part of the Multiple Myeloma Research Foundation (MMRF) Team For Cures.

The Goal:
Raise $10,000 for the MMRF
Swim: 2.4 miles
Bike: 112 miles
Run: 26.2miles

Multiple myeloma is the second most common form of blood cancer and, sadly, has one of the lowest five-year relative survival rates of all cancers. But while there is no cure, great progress is being made.

In fact, thanks to the important work of the MMRF, the world’s leading private funder of myeloma research, the FDA has approved TEN new treatments, including FOUR in just the past 18 months – a track record that’s unparalleled in the world of oncology. These drugs have almost tripled the lifespan of myeloma patients. And now the MMRF is funding over 20 additional treatments in various stages of development, giving hope to tens of thousands of patients and their families.

All donations are GREATLY appreciated! Thank you very much.
Greg

To donate, please click on the link:  https://endurance.themmrf.org/2017IMLP/Member/MyPage/986791/Gregory-Baker

As Winston Churchill so eloquently put it, “We make a living by what we get, but we make a life by what we give.” Greg is giving of himself, and I ask that you please find it in yourselves to donate what you can to help this incredible cause.  In the name of social responsibility, a heartfelt thank you from the guy-in-the-corner who is always in your corner.
Good luck Greg! -RQ

 

Investment Grade New Issue Re-Cap – Zip, Zero, Zilch Thanks to Capitol Hill and “Dysfunction Junction”

quigleys-corner-Dysfunction-Junction
Why did nothing price in today’s rare non-Friday goose egg in our IG DCM?  Simple!  Market participants and issuers are wondering if the Trump rally will stop dead in its tracks if it cannot get an Obama Care replacement bill approved by Congress.  Fractional divides within the majority controlled Republican Party reminds us all of the “circus” that is our nation’s capital known as “The Beltway.”  If support is not achieved, this writer will forever refer to Washington, D.C. as “Dysfunction Junction.”

We are already living in a nation divided with the worst media wars being fought between left and right.  Congress made some “headway” this morning by throwing out the minimum benefits that insurers are required to provide.  The final iteration, however, may not reflect the many months that Trump and his campaign staff and advisors have had to work on a replacement plan promised to be better, stronger, more efficient and one that will save the average American lots of money, while upgrading their care and keeping their choice of doctors.  Anything less than that and it will be perceived as a failure.  The session expected an announcement from House Speaker Paul Ryan – it did not happen.  A vote was expected this evening – it will not happen. The vote on legislation has officially been delayed.  Discussions will be ongoing, beginning this evening in the House at 7:00 pm ET. Markets awaited today’s healthcare/legislative conundrum with the eagerness with which it typically saves for FOMC Press Conferences.  That’s the kind of impact this decision and how it is handled will have.

Unfortunately, and further underlying all the suspense, is the real story of political dysfunction within the GOP.  A new, improved Obama Care seems to be taking a back seat to the question “will the Freedom Caucus continue to agitate any progress within the party?” If so, it will mean a long and painful 4-year term for the Trump Administration, likley result in a loss of seats in the next election and potential control of his ability to effectively govern.  Without support from within his own party effectively means no control at all.  This is all about breaking the party’s House Freedom Caucus, comprised of 20+ Republicans who have been a thorn in the side of any Republican headway.  For now, however, just getting support for whatever bill is being rushed through is challenged to find the necessary 215 votes for its passage.  The legacy of Trump’s legendary negotiating ability – recall his book “The Art of the Deal” – is also being called into question as he faces off with the nation’s lawmakers.

For the more objective Trump supporters, this could be a major disappointment and usher in more toxic additives to the “swamp” that Trump has promised to drain.  The main issue here, however, is that as important as Trump’s first real litmus test is to keep his promises on a full repeal and replacement of Obama Care is that he and his Administration will not be able to focus on any other plans unless and until he overcomes this first major hurdle.  If it fails, President Trump’s ability to achieve his eagerly anticipated and market moving tax reduction plan will be questioned and a financial crisis of confidence could likely ensue.  Perhaps the ultimate deal maker is working on health care concessions in return with a sledge hammer of a tax reduction plan. We’ll have to wait and see. I do think we could see a CT10-year below 2.00% again in short order, after which issuers will gladly hop off the fence in unison and act on a more clear view of rate direction. Robust issuance will be the flavor of the day, but first, we could see a quiet period in our primary markets.  We’ll know more tomorrow when I send out the Friday “QC” featuring the syndicate world’s “Best and the Brightest” and their views and comments on next week’s IG Corporate issuance. So, stay tuned it will be a critically important read for all of you.  For today and in conclusion, “Dysfunction Junction” is why our IG DCM was stalemated today.

IG Primary & Secondary Market Talking Points

 

  • BAML’s IG Master Index widened 1 bp to +123 vs. +122.  +106 represent the post-Crisis low dating back to July 2007.
  • Bloomberg/Barclays US IG Corporate Bond Index OAS widened 1 bp to 1.18 vs. +117.
  • Standard & Poor’s Investment Grade Composite Spread widened 1 bp to +165 vs. at +164.  The +140 reached on July 30th 2014 represents the post-Crisis low.
  • Investment grade corporate bond trading posted a final Trace count of $19.2b on Wednesday versus $20.5b on Tuesday and $21.6b the previous Wednesday.
  • The 10-DMA stands at $17.9b.

 

Global Market Recap

 

  • U.S. Treasuries – 4-day winning streak was snapped.
  • Overseas Bonds – JGB’s closed better bid. European bonds traded poorly.
  • Stocks – U.S. stocks little changed with 45 minutes left in the session.
  • Overseas Stocks – Asia closed with small gains. Europe had a good day.
  • Economic – New home sales & KC Fed manufacturing were strong.
  • Overseas Economic – U.K. retail sales were strong.
  • Currencies – The USD was mixed vs. the Big 5. The DXY Index had a small gain.
  • Commodities – Crude oil & gold closed in the red.
  • CDX IG: -0.97 to 67.37
  • CDX HY: -3.17 to 330.27
  • CDX EM: -1.52 to 216.16

*CDX levels are as of 3:30PM ET today.

-Tony Farren

 

Syndicate IG Corporate-only Volume Estimates for This Week and March

 

IG Corporate New Issuance This Week
3/20-3/24
vs. Current
WTD – $19.375b
March 2017
Forecasts
vs. Current
MTD – $107.848b
Low-End Avg. $24.92b 77.75% $113.79b 94.78%
Midpoint Avg. $25.65b 75.54% $114.31b 94.35%
High-End Avg. $26.38b 73.45% $114.83b 93.92%
The Low $20b 96.87% $80b 134.81%
The High $35b 55.36% $140b 77.03%

Below please find my synopsis of everything Syndicate and Secondary from today’s debt capital markets, including the investment grade corporate bond data drill down as seen from my seat here in Syndicate, Sales and DCM.

Have a great evening!
Ron Quigley, Managing Director & Head of Fixed Income Syndicate

 

NICs, Bid-to-Covers, Tenors, Sizes and Average Spread Compression from IPTs thru Launches

 

Here’s a review of this week’s five key primary market driver averages for IG Corporates only through Thursday’s session followed by the averages over the prior six weeks:

KEY IG CORPORATE
NEW ISSUE DRIVERS
MON.
3/20
TUES.
3/21
WED.
3/22
TH.
3/24
AVERAGES
WEEK 3/13
AVERAGES
WEEK 3/06
AVERAGES
WEEK 2/27
AVERAGES
WEEK 2/20
AVERAGES
WEEK 2/13
AVERAGES
WEEK 2/06
New Issue Concessions 0.57 bps 0.11 bps 4.62 bps N/A 0.00 bps 1.17 bps <3.15> bps <0.16> bps <0.86> bps <3.44> bps
Oversubscription Rates 3.08x 3.68x 1.77x N/A 3.08x 2.73x 3.39x 3.26x 3.76x 3.92x
Tenors 15.35 yrs 10.83 yrs 8.82 yrs N/A 10.05 yrs 9.65 yrs 8.04 yrs 8.37 yrs 8.03 yrs 12.04 yrs
Tranche Sizes $578mm $788mm $650mm N/A $859mm $671mm $738mm $695mm $744mm $735mm
Avg. Spd. Compression
IPTs to Launch
<17.69> bps <19.23> yrs <7.5> bps N/A <17.99> bps <20.00> bps <16.79> bps <18.47> bps <18.45> bps <19.60> bps

 

New Issue Pipeline (more…)

Draghi Talk; Mischler Debt Market Comment via Quigley’s Corner
October 2016      Debt Market Commentary   

Quigley’s Corner 10.20.16- Draghi Talk; The BIGGEST Oct in IG Bond History

 

Investment Grade New Issue Re-Cap 

Global Market Recap

La Dolce Vita – Draghi Talks About “The Good Life” in the EU (?!)

IG Primary & Secondary Market Talking Points

Syndicate IG Corporate-only Volume Estimates for This Week and October

NICs, Bid-to-Covers, Tenors and Sizes

New Issues Priced

Indexes and New Issue Volume

Lipper Report/Fund Flows – Week ending October 19th  

Investment Grade Corporate Debt Credit Spreads (by Rating/Industry)

New Issue Pipeline

M&A Pipeline

Economic Data Releases

Rates Trading Lab

Tomorrow’s Calendar

 

Believe it or not, we very quietly slid into 9th place among the top 10 highest all-in IG issuance weeks.  All-in IG issuance combines both IG Corporates and SSA deals.  Generally speaking,  SSA weekly issuance typically accounts for about 20%-25% of all-in weekly volume, give or take.  This week, however, thanks to The Kingdom of Saudi Arabia’s $17.5b 3-part inaugural deal, EIB’s $4.5b 3yr and today’s $4.25b IBRD two-part 3s and 10s, SSA issuance has thus far eclipsed IG Corporates 50.36% vs. 49.64%.

On the day, 3 IG Corporates priced 3 deals totaling $1.4b bringing the WTD total to $28.34b vs. $23.17b or 22% above this week’s syndicate midpoint average estimate. SSA added IBRD $4.25b two-part 3s & 10s bringing the all-in IG day total to 4 issuers, 5 tranches and $5.65b.  The all-in MTD total is now $108.145b.  This month is on pace to finish as the most prolific October in IG history.

 

Global Market Recap

 

  • U.S. Treasuries – USTs closed mixed, little changed & flatter.
  • Overseas Bonds – Long end Bunds had a strong session. JGB’s were little changed.
  • 3mth Libor – Set at the highest yield since May 2009 (0.88178%).
  • Stocks – U.S. small losses (3:15pm) Europe rallied after Draghi. Nikkei well bid.
  • Economic – U.S. data fine. Germany PPI remained negative. U.K. retail sales weaker.
  • Currencies – Strong day for the USD outperforming all of the Big 5.
  • Commodities – Crude hit hard after rallying to a 15-month high yesterday.
  • CDX IG: +0.15 to 73.87
  • CDX HY: +0.66 to 398.69
  • CDX EM: -2.93 to 234.07

*CDX levels are as of 3:30PM ET today.

-Tony Farren

 

La Dolce Vita – Draghi Talks About “The Good Life” in the EU…..N-O-T!  

ECB Head Mario Draghi announced that the ECB will not stop QE without first tapering it fortifying the opinion that it will extend well beyond March 2017. Draghi said, “an abrupt ending to bond purchases is unlikely” and “it is not present in anybody’s mind.”

Here are all the pertinent talking points from today’s short news conference with ECB President Mario Draghi:

  • The ECB left its benchmark rates unchanged as expected.
  • ECB’s Main Refinancing Rate was left unchanged at 0.0% as expected.
  • The ECB’s Deposit Facility Rate persisted at -.40% ……as expected.
  • ECB’s Marginal Lending Facility Rate continued at 0.25% also as expected.
  • ECB’s Asset Purchase Target also remained unchanged at €80 bln per month.
  • Draghi sees rates at present or lower level for extended period.
  • Sees rates at present, lower level well past QE horizon.
  • Says QE will run through March 2017 or beyond if needed.
  • QE will run until inflation path is consistent with goal.
  • ECB to preserve stimulus needed to raise inflation.
  • ECB policy ensures very favorable conditions.
  • ECB ready to act using all instruments within mandate.
  • December assessment will benefit from new forecasts.
  • Council will review committee work on QE in December.
  • Baseline remains subject to downside risks.
  • Sees moderate economic growth at steady pace.
  • No signs of convincing upward trend in core inflation.
  • Sees gradual rise in inflation.
  • Inflation rates rising further in 2017, 2018.
  • Economy resilient to global, political uncertainty.
  • Domestic demand supported by policy pass-through.
  • Investment supported by favorable financing conditions.
  • Low oil prices, job gains provide support for consumers.
  • Sluggish pace of reforms also a risk.
  • Loan dynamics follow path of gradual recovery.
  • ECB measures significantly helping credit.

 

IG Primary & Secondary Market Talking Points

 

  • The average spread compression from IPTs thru the launch/final pricing of today’s 3 IG Corporate-only new issues was 21.83 bps.
  • BAML’s IG Master Index tightened 1 bp to +135 vs. +136.  +106 represents the post-Crisis low dating back to July 2007.
  • Bloomberg/Barclays US IG Corporate Bond Index OAS tightened 1 bp to +129 vs.  +130.  The “LUACOAS” wide since 2012 is +215. The tight is +135.
  • Investment grade corporate bond trading posted a final Trace count of $18.1b on Wednesday versus $17.3b Tuesday and $16.7b the previous Wednesday.
  • The 10-DMA stands at $15.8b.

 

Syndicate IG Corporate-only Volume Estimates for This Week and October

 

IG Corporate New Issuance This Week
10/17-10/21
vs. Current
WTD – $28.34b
October 2016 vs. Current
MTD – $64.795b
Low-End Avg. $22.30b 127.09% $87.83b 73.77%
Midpoint Avg. $23.17b 122.31% $88.59b 73.14%
High-End Avg. $24.04b 117.89% $89.35b 72.52%
The Low $15b 188.93% $75b 86.39%
The High $30b 94.47% $125b 51.836%

 

Have a great evening!
Ron Quigley, Managing Director and Head of Fixed Income Syndicate

Below please find my synopsis of everything Syndicate and Secondary from today’s debt capital markets, including the investment grade corporate bond data drill down as seen from my seat here in Syndicate, Sales and DCM.

NICs, Bid-to-Covers, Tenors and Sizes

 

Here’s a review of this week’s key primary market driver averages for IG Corporates only through Wednesday’s session followed by the averages over the prior four weeks:

KEY IG CORPORATE
NEW ISSUE DRIVERS
MON.
10/17
TUES.
10/18
WED.
10/19
AVERAGES
WEEK 10/10
AVERAGES
WEEK 10/03
AVERAGES
WEEK 9/26
AVERAGES
WEEK 9/19
New Issue Concessions 6.62 bps 3.17 bps 1.71 1.87 bps 4.36 bps 2.71 bps 0.69 bps
Oversubscription Rates 2.11x 2.91x 2.86x 3.28x 4.20x 3.52x 3.23x
Tenors 6.06 yrs 10.71 yrs 12 yrs 11.51 yrs 12.16 yrs 10.51 yrs 9.36 yrs
Tranche Sizes $1,043mm $1,050mm $1,249mm $640mm $523mm $646mm $964mm

 

Indexes and New Issue Volume

 

Index Open Current Change  
LUACOAS 1.30 1.29 <0.01>  
IG27 73.725 73.938 0.213
HV27 162.135 161.645 <0.49>
VIX 14.41 13.75 <0.66>  
S&P 2,144 2,141 <3>
DOW 18,202 18,162 <40>  
 

USD

 

IG Corporates

 

USD

 

Total IG (+ SSA)

DAY: $1.40 bn DAY: $5.65 bn
WTD: $28.34 bn WTD: $57.09 bn
MTD: $64.795 bn MTD: $108.145 bn
YTD: $1,139.531 bn YTD: $1,463.365 bn

 

Lipper Report/Fund Flows – Week ending October 19th   (more…)

IG Corporate Debt Issuance YTD: 1tn aka 1 TRILLION
September 2016      Debt Market Commentary   

Quigley’s Corner 09.13.16 –2016 IG Corporate Debt Issuance (so far)= $1 T-r-i-l-l-ion!

 

Investment Grade Corporate Debt New Issue Re-Cap – Another Broken Record –

Global Market Recap

IG Primary & Secondary Market Talking Points

New Issues Priced

Lipper Report/Fund Flows – Week ending September 7th

IG Credit Spreads (by Rating/Industry)

New Issue Pipeline

M&A Pipeline

Economic Data Releases

Rates Trading Lab

 broken-record-ig-debt-mischler

Yesterday I wrote, “the session finished with only those two deals priced totaling $1.2b with a promise from the guy-in-the-corner that tomorrow WILL be a VERY busy day!” Well tomorrow is today and true to my word we had a blockbuster.  I then wrote, “We are only $20.822bn away from $1 trillion in IG Corporate-only issuance YTD.   Last year we set a new IG Corporate-only record by reaching the $1 trillion mark on Thursday, October 1st(see your incoming “Quigley’s Corner” 9-30-2015). We’d shatter that record by nearly three weeks if it happens tomorrow!

I am happy to report that we reached the $1 trillion dollar mark in IG Corporate-only volume at the earliest stage in any year, shattering last year’s record set on October 1st by 18 business days or 2 weeks and 3 days.

13 IG Corporate issuers printed 26 tranches between them today totaling $22.344b5 SSA issuers added 5 tranches totaling $9.25b for an all-in IG day total of 18 issuers, 31 tranches and $31.594b.

There remain 12 new issues in the imminent pipeline either currently road showing, about to conduct investor meetings/calls or have already wrapped those up.  So, there’s plenty of business to go not counting M&A deals of which Shire looms large.

IG Corporate New Issuance This Week
9/12-9/16
vs. Current
WTD – $23.194b
September 2016 vs. Current
MTD – $75.654b
Low-End Avg. $35.83b 64.73% $115.45b 65.53%
Midpoint Avg. $36.91b 62.84% $116.02b 65.21%
High-End Avg. $38.00b 61.04% $116.59b 64.89%
The Low $30b 77.31% $80b 94.57%
The High $46b 50.42% $150b 50.44%


Here’s how it looked:

Category Totals
# of IG Corporate Issuers 12
# of IG Corporate Tranches 25
Total IG Volume $22.194b
# of SSA Issuers 5
# of SSA Tranches 5
Total SSA Volume $9.25b
Total Amount of All-in Issuers 17
Total Number of All-in Tranches 30
All-in Corps + SSA Amount $31.244b

 

Here’s a look at some other records:

 

o   $31.594 ranks as the 5th highest volume day in history for IG Corps plus SSA.

o   $31.594b ranks as the 2nd busiest all-in issuance day of 2016.

 

Global Market Recap

 

o   U.S Treasuries – Terrible day for USTs Bund’s & Gilts also headed south. JGB’s better.

o   Stocks – U.S. down Friday, up yesterday & down today. Europe red & Asia was mixed.

o   Economic – Nothing of note in the U.S. China & Japan data better. Europe mixed.

o   Currencies – Very good day for the USD & DXY Index.

o   Commodities – Crude oil and commodities, in general, struggled.

o   CDX IG: +3.70 to 76.96

o   CDX HY: +16.91 to 413.84

o   CDX EM: +12.92 to 254.60

*CDX levels are as of 3:30PM ET today.

-Tony Farren

 

IG Primary & Secondary Market Talking Points

 

  • Liberty Property Trust upsized today’s 10yr Senior Unsecured Notes new issue to $400mm from $300mm at the launch and at the tightest side of guidance.
  • Split-rated Aspen Insurance Holdings Ltd. increased its $25 par PerpNC10 non-cumulative Preferred new issue to $225mm from $150mm at the launch and tightest side of guidance.
  • The average spread compression from IPTs thru the launch/final pricing of today’s 24 IG Corporate-only new issues was 16.99 bps.
  • Including today’s Aspen $25 par Preferred, the average spread compression from IPTs thru the launch/final pricing of today’s 25 IG Corporate new issues was 16.54 bps.
  • BAML’s IG Master Index widened 2 bps to +142 versus +140.  +106 represents the post-Crisis low dating back to July 2007.
  • Standard & Poor’s Global Fixed Income Research widened 1 bp to +190 versus +189.  The +140 reached on July 30th 2014 represents the post-Crisis low.
  • Investment grade corporate bond trading posted a final Trace count of $12.6b on Monday versus $15.7b Friday.
  • The 10-DMA stands at $13.8b.

 

Below please find my synopsis of everything Syndicate and Secondary from today’s debt capital markets, including the investment grade corporate bond data drill down as seen from my seat here in Syndicate, Sales and DCM.

Ron Quigley, Managing Director / Head of Fixed Income Syndicate (more…)