Browsing articles tagged with "veterans day Archives - Mischler Financial Group"
Mischler Financial Group Bolsters 25th Annual Fund Raising Gala
November 2016      Giving Back   

In connection with Mischler Financial Group’s 2016 Annual Veterans Day Month Pledge, whereby a percentage of the firm’s entire month of November profits are allocated to select charitable organizations, Mischler senior execs Dean Chamberlain (CEO), along with his family members, Managing Director and Head of Capital Markets Rob Karr and Managing Director Leslie Graves subscribed to the military ethos ‘all hands on deck’ to support the 25th Annual Gala held Nov 2 at New York’s Waldorf Astoria Hotel.

The Nov 2nd celebration raised $3.4million to support buildOn’s mission of “breaking the cycle of poverty, illiteracy and low expectations through service and education.”

The Gala served as the public launch of buildOn’s Expect More Campaign, which will fund the first part of buildOn’s 25 year vision. The campaign aims to raise $15 million for buildOn’s U.S. Service Learning and Global School Construction programs.

In addition to Mischler Financial Group, the 2016 buildOn Gala included the sponsorship of GE, Jones Day, Ogilvy & Mather, Rodan + Fields, Deutsche Bank, Goldman Sachs, JP Morgan, Kiernan Herner LLP, KPMG, PriceWaterhouseCoopers, and Synchrony Financial.

Per November 1 announcement, Mischler’s Veterans Day Month Pledge was dedicated to, Bob Woodruff Foundation and The Johnny Mac Soldiers Fund.


CEO Dean Chamberlain (second from right) with Jackson Chamberlain (right), Nina Chamberlain (3rd from right), Joni Chamberlain (4th from right), Mischler Managing Director Leslie Graves (c) and Mischler Managing Director and Head of Capital Markets Rob Karr (3rd from left) with team leaders.





Mischler Boston Team Gives Back to Vets DAV 5k
November 2016      Giving Back   

November 12-2016–Mischler Financial Group’s Boston Office team, home to Mischler’s International Equities Group turned out in force to participate in the 2016 DAV 5K Boston Run to Honor Veterans, one of Boston’s leading Veterans Day fundraising programs.

The DAV 5K Run to Honor Veterans is a run, walk, roll and motorcycle ride that thanks those who served and raises awareness of the issues our ill and injured veterans face every day. The DAV 5K National Series is presented by DAV (Disabled American Veterans), a nonprofit organization that helps more than 1 million veterans in life-changing ways each year.

“The events help further the mission of DAV to ensure our injured heroes are not alone on their road to recovery. When you participate in the DAV 5K and encourage others to support this event, you are investing in the lives of our wounded American heroes who have sacrificed for our freedoms.”


(l) Mischler Managing Dir Larry Peruzzi, Guest Marybeth Forbes, Lauren Peruzzi; Right Side Image: (l) Chris Dorin (The Boston Company), Marybeth Forbes,Mischler sales/trader Jeanne Austin, Larry Peruzzi, Lauren Peruzzi





Veterans Firm Mischler Applies Military Focus In Munis-Bond Buyer
November 2016      Company News, Muni Market, News and Information   

Bond Buyer Nov 10 2016 coverage of Mischler Financial Group re-published in parts with permission



Chip Barnett, BondBuyer

Duty. Honor. Country.

Gen. Douglas MacArthur’s words aren’t just a Veterans Day slogan for Mischler Financial Group.

MFG is America’s oldest institutional brokerage and investment bank certified as a Service-Disabled Veterans Business Enterprise (SDVOBE). The minority broker-dealer was founded in 1994 and certified by the State of California in 1995. It is also one of the first FINRA members certified by the US Department of Veterans Affairs, the State of New York and the Commonwealth of Massachusetts. MFG is 100% employee owned and operated and takes a value-added approach to its public sector business.

“We are unequaled in our command of the financial market terrains in which we operate, and unmatched in our sense of duty, discipline, integrity, and honor… in every undertaking. We leave no client behind,” according to the firm’s mission statement.


Mgn. Dir. Rick Tilghman (l), CEO Dean Chamberlain (r)

MFG’s public finance department includes new issue underwriting and full service secondary market trading of both general obligation and revenue bonds. The firm trades over $14 billion a month in fixed income alone. And it has extensive experience in the public finance underwriting field; the company underwrote its first municipal bond issue in 1999 for the Los Angeles State Building Authority. Today approximately 15% of its underwriting activity is municipal bonds. The firm is also a two-time counterparty to the New York Federal Reserve Bank.

Some of MFG’s recent deals include serving as: co-manager on DASNY’s $1.11 billion of state personal income tax revenue bond sale in October; co-manager on the Regents of the University of California’s $1.05 billion of Medical Center pooled revenue bond deal in August; co-manager on the Los Angeles Department of Water and Power’s $628.62 million sale of water and revenue bonds in April; and as a selling group member on New York City’s $800.06 million general obligation bond deal in August and on NYC’s $800.45 million GO deal in May.

Walter Mischler, MFG’s founder and chairman, and Dean Chamberlain, its chief executive officer, are both graduates of the U.S. Military Academy.

Mischler, West Point Class of 1969, served with distinction in the Vietnam theatre in the infantry during 1971-1972 before he became disabled. He founded the firm in 1994 and today continues his work with institutional investment managers, major corporations, and government agencies in the federal, state and municipal sectors.

Chamberlain, West Point Class of 1985, had his six-year tour of duty, where he held various leadership positions with the 4th Infantry Division, cut short after suffering a disabling injury during a parachute jump. He began his financial services career in 1992 at Donaldson, Lufkin & Jenrette, trading mortgage- and asset-backed securities. Before joining Mischler Financial in 2011, Chamberlain was a member of the board of directors for Nomura Securities International and served as its head of fixed income for the Americas and head of distribution in both North and South America. Previously, he was a senior executive for Bank of America Securities, where he was head of structured products distribution for the Midwest region. Chamberlain said what differentiates MFG from other firms is that “our capital is our own capital. We don’t borrow it from somebody else.” He said the company is reinvesting into the business with its own money, not with somebody else’s.

With headquarters in Stamford, Conn., and Newport Beach, Calif., the firm has offices in eight cities across the U.S. and is staffed by over 55 veterans of the securities industry.

MFG administers corporate share repurchase programs for leading companies, cash management for government entities and corporations, and asset management programs for liquid and alternative investment strategies.

“This firm has been around for over 20 years,” Chamberlain said, “but for 17 of those years did mostly secondary sales and trading in a robust client base covering cities, counties and states in the middle market.”

Over the last six years, he said, the firm has adopted a new business model that says “slow and steady wins the race, build our capital, hire veterans, hire qualified people and add value, add value, add value. And that’s done very well for all of us.”

Richard Tilghman, MFG’s Managing Director of Public Finance, exemplifies the best of that new strategy. He went to Yale University and spent 19 months in Vietnam as a Marine infantry officer.

Tilghman has been in municipal bonds since 1971. He began his career at First Boston Corp. in public finance and worked on its trading floor. He has been in munis ever since, having been employed at such firms as Greenwich Partners, First Albany, Public Resources Advisory Group, Lehman, and Ramirez & Co. He joined Mischler Financial in 2014.

He said the competitive arena was a new area that the firm has become involved in adding that the firm has already participated at the co-manager level on several bond sales.

robert-karr-mischler-financial-capital-marketsRobert Karr joined MFG in 2011, to head the firm’s capital markets group. He previously worked at Bank of America Securities and at Prudential Securities, where he ran structured finance.

Karr said he believes in the idea of a firm that does “the right thing for the customer, where you may not maximize the value [for yourself] on a given trade or deal … but you build a business and a relationship for the long term.”

Since 2011, when MFG significantly expanded its capital markets focus and staffing, the debt capital markets group has done about 750 deals with over $920 billion in issuance from 156 unique issuers. In 2015, the firm was involved in 76 municipal deals for about $32.5 billion and so far in 2016, it has been involved in about 66 deals for about $30.8 billion.

In 2015, the firm had a record breaking year, with all underwriting areas doing about $295 billion of business in 107 issues.

“Our business ethos is we want people to say ‘great firm, great origination, great trading great service, great distribution and oh, by the way, they’re a service disabled veteran firm that gives back.’ That’s what it’s all about for us,” he said.

In its charitable role, MFG will donate a percentage of the entire month of November’s profits to The Bob Woodruff Foundation, The Johnny Mac Soldiers Fund and in observance of Veterans Day 2016.

For Mischler Financial Group, the battle to add value for its clients and provide support for the country while keeping its focus on those who have served in the military, is one precept to which they will be always faithful.

To continue reading coverage from The Bond Buyer, please click here (more…)

Twas The Eve Before the US Presidential Election and the Debt Markets Indicated..
November 2016      Debt Market Commentary   

Quigley’s Corner 11.04.16 “’ Twas the Eve Before the Election..and Debt Markets Indicated Volatility Risk … ”

“…Please be mindful that this event could give rise to volatile market conditions; consequently, there is a risk of FX and Rates markets trading in wide ranges during the period.  Voice and electronic trading desks will endeavor to operate at as close to normal levels of service as conditions allow.  With respect to electronic trading specifically, you should bear in mind that low levels of liquidity or high volatility during the period could impact bid-offer spreads, or result in potential delays in order execution…” Head of Rates Trading,  Primary Dealer/Global Investment Bank

 “QC” Call to “Get Out and Vote” next Tuesday November 8th

Investment Grade New Issue Re-Cap 

Global Market Recap

IG Primary & Secondary Market Talking Points

Potential Election Day Trade Volatility

The Best and the Brightest” –  Syndicate Forecasts and Sound Bites for Next Week 

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

New Issues Priced

This Week’s IG New Issues and Where They’re Trading

Indexes and New Issue Volume

Lipper Report/Fund Flows – Week ending November 2nd  

Investment Grade Corporate Credit Spreads (by Rating/Industry)

New Issue Pipeline

M&A Pipeline

Economic Data Releases

Rates Trading Lab

Your humble fixed income servant already voted in my home state of Connecticut via absentee ballot two weeks ago, as I would not have made it in time to cast my ballot traveling back from Phoenix on Election Day.  Each of us understands what a contentious election this one is.  Whoever floats your boat please just get out and cast yours on Tuesday the 8th or hopefully you sent in your ballot in your home state. If you do not vote you do not have a right to complain.  It’s not the voting that is democracy rather it’s the counting.  SO, GET OUT AND VOTE – IT’S A CIVIC SACRAMENT! For those of us blessed enough to have been called to citizenship in a country in which we govern ourselves by choosing our own leaders, voting is one of the duties of our vocation. Enough said.

Sunrise and sunset will be about 1 hour earlier on Nov 6, 2016 than the day before. There will be more light in the morning. Thank Goodness!

Investment Grade New Issue Re-Cap

Bank of America was the sole visitor to today’s IG dollar DCM printing a $1bn 4NC3 Senior Notes new issue due 11/09/2020.  The “Green Bond” is callable after 3 years on 11/09/2019 at par.  BAML was the sole book runner.  Proceeds from the transaction will be used to fund renewable energy projects including the financings of or investments in equipment and systems that facilitate the use of energy from renewable sources such as solar, wind and geothermal energy.

Please continue through the below right into the “Best & Brightest’s” IG Corporate new issue supply forecasts for next week from the street’s top syndicate gurus.  I have all their numbers and thoughts about next week’s Election Day/Veteran’s Day influenced and shortened week waiting for you. It’s all here folks and I make it easy – I write it, I talk to all of them and conveniently deliver it to your desktop or hand held device free of charge!  I’m told it’s good and so, naturally I think it’s good but why listen to me? Wall Street Letter has awarded the “QC” it Best Broker Dealer research for three years in a row – 2014, 2015 and 2016.  What’s not to like about that? I mean really! So, relax, be informed and have yourselves a great weekend!

Global Market Recap


  • S. Treasuries – The 30yr lead the UST rally despite the solid Employment Report.
  • Overseas Bonds – Gilts led the core EU bond rally while Peripheral sold off.
  • Stocks – U.S. stocks with small losses at 3:45pm. Bad day for Nikkei & Europe.
  • Economic – The U.S. Employment Report was solid. The trade balance improved.
  • Currencies – USD lost vs. Euro & Pound but had a small gain vs. the Yen, CAD & AUD.
  • Commodities – The crude oil sell off continued. Gold was unchanged.
  • CDX IG: +0.15 to 80.85
  • CDX HY: -2.52 to 433.56
  • CDX EM: -2.76 to 250.86

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

-Tony Farren


IG Primary & Secondary Market Talking Points

  • Taking a look at the secondary trading performance of this week’s IG and SSA new issues, of the 23 deals that printed, 11 tightened versus NIP for a 00% improvement rate while only 8 widened (35.00%) 4 were trading flat (17.00%).
  • For the week ended November 2nd, Lipper U.S. Fund Flows reported an outflow of $2.495b from Corporate Investment Grade Funds (2016 YTD net inflow of $40.292b) and a net outflow of $4.116b from High Yield Funds (2016 YTD net inflow of $6.954b).
  • The average spread compression from IPTs thru the launch/final pricing of today’s 1 IG Corporate-only new issue was 10.00 bps.
  • BAML’s IG Master Index widened 1 bp to +141 vs. +140.  +106 represents the post-Crisis low dating back to July 2007.
  • Bloomberg/Barclays US IG Corporate Bond Index OAS was unchanged at +135.  The “LUACOAS” wide since 2012 is +215. The tight is +135.
  • Standard & Poor’s Investment Grade Composite Spread widened 1 bp to +186 vs. +185.  The +140 reached on July 30th 2014 represents the post-Crisis low.
  • Investment grade corporate bond trading posted a final Trace count of $15.9b on Thursday versus $17.5b Wednesday and $20.3b the previous Thursday.
  • The 10-DMA stands at $16.8b.


Note About Potential Election Day Trade Volatility

I thank my Corporate Secondary trader, Annie Bonner for the following prescient note that she sent around today and that definitely has a place in the “QC”.
It is self-explanatory:

As we saw with Brexit, dealers are sending out notices to prep for Election Day markets.


For example, from one Primary Dealer wrote:

“……….Please be mindful that this event could give rise to volatile market conditions; consequently, there is a risk of FX and Rates markets trading in wide ranges during the period.  Voice and electronic trading desks will endeavor to operate at as close to normal levels of service as conditions allow.  With respect to electronic trading specifically, you should bear in mind that low levels of liquidity or high volatility during the period could impact bid-offer spreads, or result in potential delays in order execution.”


As Annie concluded, “We’ll probably be seeing more of these today & Monday.”

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


IG Corporate New Issuance This Week
vs. Current
WTD – $11.791b
November 2016 vs. Current
MTD – $7.466b
Low-End Avg. $24.26b 48.60% $90.70b 8.23%
Midpoint Avg. $25.13b 46.92% $92.11b 8.11%
High-End Avg. $26.00b 45.35% $93.52b 7.98%
The Low $15b 78.61% $71b 10.52%
The High $35b 33.69% $110b 6.79%


The Best and the Brightest” –  Syndicate Forecasts and Sound Bites for Next Week 

I am happy to announce that, once again, the “QC” received unanimous responses from the 23 syndicate desks surveyed in today’s Best & Brightest poll.  22 of those participants are among 2016’s top 23 ranked syndicate desks according to today’s Bloomberg’s U.S. IG U.S. Investment Grade Corporate Bond underwriting league table.  In fact, all of today’s 23 participants finished in the top 25 of last year’s final IG Corporate Bloomberg league table.  The 2016 League table can be found on your terminals at “LEAG” + [GO] after which you select #201 (US Investment Grade Corporates).  The participating desks represent 80.93% of all IG dollar-denominated new issue underwriting as of today’s table share percentage which simply means they’re the ones with visibility.  But it’s not only about their volume forecasts, it’s also about their comments!  This core syndicate group does it best; they know best; so they’re the ones you WANT and NEED to hear from.  It’s a great look at the week ahead.

*Please note that these are Investment Grade Corporates only. They do not include SSA issuance unless otherwise noted.

As always “thank you” to all the syndicate desks that participated in today’s survey.  I greatly appreciate your time to contribute and for making this edition of the “QC” among the most widely read! You are helping to promote Mischler’s value-added DCM proposition while adding readership to the “QC” that won Wall Street Letter’s Award as Best Broker Dealer Research in our financial services industry for the third consecutive year! That’s 2014, 2015 and 2016 !!  More importantly, however, you are helping the nation’s oldest Service Disabled Veteran broker-dealer grow in a more meaningful and sustainable way.  So, thank you all! -RQ

The question posed to the “Best and the Brightest” early this morning was prefaced with the following:

If anyone says the U.S. Presidential election is not important in our inextricably linked new world order just point to our IG dollar DCM this week in which we managed to price a mere 42% of this week’s syndicate midpoint average forecast or $10.79b vs. $25.13b.

Here are some impactful events coming up next week that should keep a damper on issuance……among other things:

  • Mon thru Wed. 11/7-11/09 – EEI’s 51st Annual Financial Conference in Phoenix taking Utility issuers off the radar.
  • Tuesday, 11/08 – U.S. Presidential Election
  • Friday, 11/11 – Veteran’s Day (Federal Holiday, many leave work a bit earlier the day before – Thursday 11/10).

Here are this week’s five IG Corporate-only key primary market driver averages:


  • NICS:  <0.92> bps
  • Oversubscription Rates: 3.33x
  • Tenors:  11.33 years
  • Tranche Sizes: $469mm
  • Spread Compression from IPTs to the Launch: <178.26> bps

Versus last Friday’s key primary market driver averages, NICs widened a mere 0.06 bps to <0.92> vs. <0.98> bps while over subscription or bid-to-cover rates grew 0.72x to 3.33x vs. 2.61x last week.  Average tenors moved way out 3.62 years to 11.33 yrs vs. 7.71yrs while tranche sizes decreased by a lot – by $357mm to $469mm vs. $826mm.  

Standard and Poor’s Investment Grade Composite Spreads widened 5 bps to +186 versus last Friday’s +181.

For the week ended November 2nd, Lipper U.S. Fund Flows reported an outflow of $2.495b from Corporate Investment Grade Funds (2016 YTD net inflow of $40.292b) and a net outflow of $4.116b from High Yield Funds (2016 YTD net inflow of $6.954b).

Week-on-week, BAML’s IG Master Index widened 4 bps to +141 vs. last Friday’s +137 close.  Spreads across the four IG asset classes also widened 3.75 bps to 32 vs. 28.25 as measured against their post-Crisis lows.  Looking at the 19 major industry sectors, spreads widened 4.58 bps to 37.42 vs. 32.84 also against their post-Crisis lows.
Please let me know your number and most importantly your thoughts for next week’s IG Corporate issuance.  

……and here are their formidable responses:

(this section available exclusively to Quigley’s Corner distribution list recipients)


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 weekend!
Ron Quigley, Managing Director and Head of Fixed Income Syndicate


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

Please note: The below table averages for this week includes today’s BAML 4NC3 new issue. As a result, the numbers differ ever so slightly from the averages in my question to the “Best & Brightest” which was written and sent at the open this morning.  Thanks! -RQ

Here is this week’s day-by-day re-cap of the five key primary market driver averages for IG Corporates followed by this week’s and the prior three week’s averages:


WEEK 10/24
WEEK 10/17
WEEK 10/10
New Issue Concessions 0.50 bps <2.29> bps 3 bps <3.75> bps flat or 0 bps <0.87> bps <0.51> bps 3.31 bps 1.87 bps
Oversubscription Rates 2.99x 2.90x 2.73x 4.80x 3.25x 3.32x 2.61x 3.05x 3.28x
Tenors 8.39 yrs 11.93 yrs 11.30 yrs 15.50 yrs 4 yrs 11.33 yrs 7.77 yrs 9.16 yrs 11.51 yrs
Tranche Sizes $721mm $379mm $393mm $370mm $1,000mm $491mm $818mm $1,137mm $640mm
Avg. Spd. Compression
IPTs to Launch
<14.21> bps <17.71> bps <22.50> bps <22.20> bps <10> bps <17.87> yrs <17.42> bps    


This Week’s IG New Issues and Where They’re Trading

Taking a look at the secondary trading performance of this week’s IG and SSA new issues, of the 23 deals that printed, 11 tightened versus NIP for a 48.00% improvement rate while only 8 widened (35.00%) 4 were trading flat (17.00%).

Issues are listed from the most recent pricings at the top working back to Monday at the bottom.  Thanks! –RQ


Issuer Ratings Coupon Maturity Size IPTs GUIDANCE LAUNCH PRICED TRADING
Johns Hopkins University Aa3/AA- 3.837% 5/15/2046 500 +135a N/A +123 +123 127/125
Principal Finc’l. Group Inc. Baa1/BBB+ 3.10% 11/15/2026 350 +160a +130-135 +130 +130 129/127
Principal Finc’l. Group Inc. Baa1/BBB+ 4.30% 11/15/2046 300 +200a +170-175 +170 +170 165/162
PSE&G Baa2/BBB 1.60% 11/15/2019 400 +85-90 +70a (+/-2) +68 +68 66/64
PSE&G Baa2/BBB 2.00% 11/15/2021 300 +95-100 +80a (+/-2) +78 +78 76/74
Bank of Nova Scotia Aa3/A+ FRN 11/01/2018 166 N/A N/A N/A 3mL+45 3mL+47/45
Children’s Hosp. Med. Ctr. Aa2/AA 2.853% 11/15/2026 100 N/A N/A N/A +105 106/104
Danske Bank A/S A2/A FRN 11/10/2020 200 N/A N/A N/A 3mL+73 3mL+73/70
Occidental Petroleum A3/A 3.00% 2/15/2027 750 +145a +130a (+/-5) +125 +125 122/120
Occidental Petroleum A3/A 4.10% 2/15/2047 750 +180a +160a (+/-5) +155 +155 152/150
EQT Midstream Partners LP BBB-/BBB- 4.125% 12/01/2026 500 +262.5a +245a (+/-5) +240 +240 240/238
Kimco Realty Baa1/BBB+ 2.70% 3/01/2024 400 +130-135 +120a (+/-3) +117 +117 118/116
Kimco Realty Baa1/BBB+ 4.125% 12/01/2046 350 +180-185 +165a (+/-5) +160 +160 159/157
Lazard Group LLC A-/BBB+ 3.625% 3/01/2027 300 +200a +190a (+/-5) +185 +185 189/187
Rogers Communications Inc. Baa1/BBB+ 2.90% 11/15/2026 500 +125a N/A +125 +125 130/128
Ryder System Inc. Baa1/A- 2.25% 9/01/2021 300 +120-125 +100a (+/-3) +97 +97 97/95
Southwest Airlines Co. Baa1/BBB+ 3.00% 11/15/2026 300 +mid-100s/+150a +130a (+/-3) +127 +127 128/126
Axis Capital Holdings Ltd. Baa3/BBB 5.50% PerpNC5 550 N/A N/A5.50-5.625%a
5.50% $25 Pfd $25.75/.80
CMS Energy Corp. Baa2/BBB 2.95% 2/15/2027 275 +135a +120a (+/-5) +115 +115 115/113
Illinois Tool Works A2/A+ 2.65% 11/15/2026 1,000 +95a +85 the # +85 +85 80/78
Proctor & Gamble Co. Aa3/AA- 1.70% 11/03/2021 875 +55a +45a (+/-2) +43 +43 42/40
Proctor & Gamble Co. Aa3/AA- 2.45% 11/03/2026 875 +75a +65a (+/-2) +63 +63 62/60
Wabtec Baa3/BBB 3.45% 11/15/2026 750 +187.5a +165a (+/-2.5) +162.5 +162.5 158/155


Indexes and New Issue Volume

Please note that Index levels are as of 4:15pm ET

Index Open Current Change  
LUACOAS 1.35 1.35 0  
IG27 80.702 80.967 0.265
HV27 179.245 180.23 0.985
VIX 22.08 22.91 0.83  
S&P 2,088 2,085 <3>
DOW 17,930 17,888 <42>  



IG Corporates




Total IG (+SSA)

DAY: $1.00 bn DAY: $1.00 bn
WTD: $11.791 bn WTD: $11.791 bn
MTD: $7.466 bn MTD: $7.466 bn
YTD: $1,176.247 bn YTD: $1,506.131 bn


Lipper Report/Fund Flows – Week ending November 2nd  


  • For the week ended November 2nd, Lipper U.S. Fund Flows reported an outflow of $2.495b from Corporate Investment Grade Funds (2016 YTD net inflow of $40.292b) and a net outflow of $4.116b from High Yield Funds (2016 YTD net inflow of $6.954b).
  • Over the same period, Lipper reported a net inflow of $146.468m into Loan Participation Funds (2016 YTD net outflow of $1.518b).
  • Emerging Market debt funds reported a net outflow of $345.7m (2016 YTD inflow of $7.337b).


IG Credit Spreads by Rating

The 10-day IG spread performance vs. the T10 across the ratings spectrum and how IG compared versus high yield:

Spreads across the four IG asset classes are an average 32.00 bps wider versus their post-Crisis lows!


ASSET CLASS 11/03 11/02 11/01 10/31 10/28 10/27 10/26 10/25 10/24 10/21 1-Day Change 10-Day Trend PC
IG Avg. 141 140 139 138 137 136 136 135 135 135 +1 +6 106
“AAA” 83 83 82 82 80 80 80 78 78 77 0 +6 50
“AA” 87 87 86 86 85 85 84 83 83 83 0 +4 63
“A” 112 112 111 111 110 109 109 108 108 108 0 +4 81
“BBB” 182 181 180 178 176 175 176 175 174 175 +1 +7 142
IG vs. HY 374 375 366 353 339 333 330 325 325 327 <1> +47 228


IG Credit Spreads by Industry

…….and a snapshot of the major investment grade sector credit spreads for the past ten sessions:

Spreads across the major industry sectors are an average 37.42 bps wider versus their post-Crisis lows!


INDUSTRY 11/03 11/02 11/01 10/31 10/28 10/27 10/26 10/25 10/24 10/21 1-Day Change 10-Day Trend PC
Automotive 120 122 121 120 119 119 119 117 117 117 <2> +3 67
Banking 130 130 129 129 128 127 128 127 127 127 0 +3 98
Basic Industry 181 181 180 179 179 178 179 177 177 179 0 +2 143
Cap Goods 106 106 105 105 103 102 102 101 101 101 0 +5 84
Cons. Prod. 112 112 111 110 109 108 108 107 105 105 0 +7 85
Energy 183 183 180 179 177 176 176 175 174 175 0 +8 133
Financials 166 165 164 162 160 159 160 160 160 160 +1 +6 97
Healthcare 124 123 122 120 118 117 117 115 114 114 +1 +10 83
Industrials 143 143 141 140 139 138 138 137 136 136 0 +7 109
Insurance 154 153 153 153 153 153 153 154 154 155 +1 <1> 120
Leisure 138 138 138 138 138 137 138 137 136 135 0 +3 115
Media 166 165 164 162 160 160 159 157 157 157 +1 +9 113
Real Estate 146 146 146 146 146 146 146 147 147 147 0 <1> 112
Retail 123 122 121 120 118 117 117 116 115 114 +1 +9 92
Services 130 130 129 129 129 128 128 128 128 128 0 +2 120
Technology 120 120 119 117 115 114 115 113 112 112 0 +8 76
Telecom 172 172 170 168 167 165 165 163 162 161 0 +11 122
Transportation 140 139 138 137 137 136 136 136 136 136 +1 +4 109
Utility 139 138 138 138 137 136 136 136 136 137 +1 +2 104


Economic Data Releases


Trade Balance September <$38.0b> <$36.4b> <$40.7b> <$40.5b>
Change in Nonfarm Payrolls October 173k 161k 156k 191k
Two-Month Payroll Net Revisions October —- 44k <7k> —-
Change in Private Payrolls October 170k 142k 167k 188k
Change in Manufacturing Payrolls October <4k> <9k> <13k> —-
Unemployment Rate October 4.9% 4.9% 5.0% —-
Average Hourly Earnings MoM October 0.3% 0.4% 0.2% 0.3%
Average Hourly Earnings YoY October 2.6% 2.8% 2.6% 2.7%
Average Weekly Hours All Employees October 34.4 34.4 34.4 —-
Change in Household Employment October —- <43.0> 354.0 —-
Labor Force Participation Rate October —- 62.8% 62.9% —-
Underemployment Rate October —- 9.5% 9.7% —-