Some Early Corporate Bond Stuff

October 31st, 2016 5:55 am | by John Jansen |

Via Bloomberg:

IG CREDIT: Volume Drops 30% as Spreads Leak Wider
2016-10-31 09:43:09.330 GMT

By Robert Elson
(Bloomberg) — Secondary IG trading ended with a Trace
count of $14.3b Friday vs $20.3b Thursday, the highest volume
since July, $12b the previous Friday. 10-DMA $16.5b; 10-Friday
moving avg $12.1b.

* 144a trading added $1.7b of IG volume Friday vs $3.3b on
Thursday, $1.6b last Friday

* Trace most active issues longer than 2 years:
* C 3.20% 2026 was 1st with dealer-to-dealer trades
accounting for 55% of volume; client buying 1.7x
sessling, affiliate buying near twice selling
* VZ 2.625% 2026 was next with client and affiliate flows
sharing volume with trades between dealers near 50/50;
client selling 1.8x buying
* WFC 3.00% 2026 was 3rd with client flows at 84% of
volume; client buying 1.8x seeling
* T 4.50% 2048 was the most active 144a issue with client
flows accounting for 90% of volume; client selling 2.2x
buying

* Bloomberg Barclays US IG Corporate Bond Index OAS at 132 vs
131
* 2016 wide/tight: 215 (a new wide since Jan. 2012)/129
* 2015 wide/tight: 171/122
* 2014 wide/tight: 137/97
* All time wide/tight back to 1989: 555 (Dec. 2008)/54
(March 1997)

* BofAML IG Master Index unchanged at +137 vs +136; +135, its
tightest spread of 2016 was seen Oct. 19-25; 2015 tight was
+129

* Current markets vs early Friday levels:
* 2Y 0.849% vs 0.880%
* 10Y 1.840% vs 1.850%
* Dow futures +16 vs flat
* Oil $48.58 vs $49.57
* ¥en 104.93 vs 105.29

* U.S. IG BONDWRAP: IG Volume Tops $30b for the 3rd Straight
Week
* October total now $144.5b; YTD $1.48t

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