AXESS DAILY
corporate BOND EDITION | Tuesday, May 19, 2015
High Court Protects 401(k) Investors
G7 CALENDAR
Tuesday
1:30 a.m., JPN
Apr Nationwide department store sales
Y/Y (previous -19.7%)
see page 2
Top News This Morning
Eurozone Exports Boosted by Weaker Euro
A weaker euro helped boost exports of goods from the eurozone to the rest of the world in
March, pushing the currency area’s trade surplus higher and aiding its economic recovery.
ECB Ready to Go Further
1:30 a.m., JPN
Apr Tokyo area department store sales
The European Central Bank is ready to take additional steps to boost inflation if its current
quantitative easing program proves insufficient, the head of France’s central bank Christian Noyer
said Tuesday.
4:30 a.m., UK
Mar CML Monthly Lending Trends
U.K. Flirts With Deflation as Prices Fall
4:30 a.m., UK
Mar ONS House Price Index
4:30 a.m., UK
Apr UK monthly inflation figures CPI
Monthly (previous +0.2%), Yearly
(previous +0%), CPI Core Monthly
(previous +0.4%), Yearly (previous +1%),
Retail Price Index Monthly (previous
+0.2%), Yearly (previous +0.9%)
4:30 a.m., UK
Apr UK producer prices Core PPI
Monthly (previous +0%), Yearly
(previous +0.1%), Monthly (previous
+0.3%), Yearly (previous -13%), Output
PPI Monthly (previous +0.2%),
Yearly (previous -1.7%)
5:00 a.m., EU
Apr Harmonised CPI CPI Monthly
(previous +1.1%), Yearly (previous -0.1%),
Core CPI (Cur Month) (previous +1.4%),
(Cur Year) (previous +0.6%), CPI
Ex-Tobacco (MoM) (previous +1.1%),
(YoY) (previous -0.2%)
5:00 a.m., EU
Mar Foreign trade Trade Balance
(previous 20.3B), (Prev Yr) (previous
14.4B)
all times ET
Consumer prices in the U.K. fell in April compared with a year earlier for the first time in more
than half a century, underscoring the weakness of inflation throughout much of the developed
world.
Skechers Hits Its Stride in U.S. Sports Footwear Market
Casual footwear brand Skechers is now outpacing traditional athletic shoe companies at their
own race.
Starbucks, Spotify Team Up
Starbucks will allow Spotify subscribers to get reward points they can redeem at its coffee shops.
Breakthrough for Rio Tinto
A $5.4 billion expansion of one of Rio Tinto’s biggest mining projects looks set to go ahead, after
the miner reached a deal with the Mongolian government.
Drug Deal to Generate Tax Benefits
Endo International agreed to buy Par Pharmaceutical from private-equity firm TPG for about $8
billion in cash and stock.
Vodafone Hails Signs of Stabilization in Europe
Vodafone reported a rise in quarterly revenue for the first time in nearly three years, hailing a
steady recovery in its key European telecommunications markets.
Unilever Names New CFO
Consumer-goods giant Unilever PLC has named Graeme Pitkethly to be its new chief financial
officer, replacing Jean-Marc Huët, who is leaving after more than five years as the company’s
financial head.
Tsinghua Unigroup to Buy Control of H-P Unit
Tsinghua Unigroup plans to buy a 51% stake in Hewlett-Packard’s China networking gear subsidiary H3C.
‘Made in China’ Gets an Upgrade
China unveiled an ambitious plan to enhance the competitiveness of its manufacturing sector by
encouraging innovation and raising efficiency.
Libya’s State Oil Company Reassures West
Libya’s National Oil Corporation is reassuring Western energy firms that its company is operating without political interference, its chairman said in an interview.
Flipkart Valued at $15 Billion
Flipkart raised $550 million from existing investors in a deal that raises its valuation to about $15
billion.
Samsung Infringed on Apple’s iPhone Patents
A federal appeals court handed a partial victory to Apple, upholding court filings ruling Samsung
Electronics infringed the iPhone maker’s intellectual property but setting aside part of a $930
million jury award.
Merck Profit Pressured by M&A Financing
Merck KGaA said first-quarter net profit fell 13% because of financing costs linked to its planned
acquisition of Sigma-Aldrich.
www.marketaxess.com | page 1
AXESS DAILY | CORPORATE BOND EDITION | Tuesday, May 19, 2015
MARKETS & ECONOMY
High Court Protects 401(k)
Investors
The Supreme Court on Monday put companies managing 401(k) retirement plans on
notice they have a continuing duty to be judicious on plan investment decisions, adding
protections for the worker savings plans.
A unanimous court said plan administrators
must continue “to monitor trust investments
and remove imprudent ones. This continuing
duty exists separate and apart from the trustee’s duty to exercise prudence in selecting
investments at the outset.”
The case involves investors in Edison
International’s 401(k) offerings who claimed
the Rosemead, Calif., energy holding company
violated its fiduciary duties by buying retail
mutual funds when nearly identical products
were available through less-expensive institutional-class funds. It came to the court on the
issue of calculating how long investors had to
bring their lawsuit.
The court’s opinion, written by Justice
Stephen Breyer, expands the time limit for
investors to sue by saying a six-year deadline
isn’t automatically set the moment the investments are purchased. It also addressed administrator responsibilities, setting standards that
legal experts said could reverberate in the
retirement-savings industry.
“This will be of tremendous importance in
protecting the interests of retirees going forward,” said Jerome Schlichter, the St. Louis
attorney at Schlichter Bogard & Denton who
led the class-action case on behalf of Edison
employees.
John Donovan, a partner in Boston for
Ropes & Gray who wasn’t involved in the case,
said the opinion is a clear signal that company
plans “can’t go on autopilot.”
The high court rejected a ruling by the
Ninth U.S. Circuit Court of Appeals in San
Francisco. The appeals court had thrown out
the suit after finding it was filed after a six-year
time limit expired. The case goes back to a
lower court, which will review how often the
administrator must re-examine the investments and how to calculate the deadline.
“We fear the court has invited litigation into
an arena that is already rife with regulatory
burden and litigation exposure,” Linda Kelly, a
senior vice president and general counsel at
the National Association of Manufacturers,
said in a written statement. The group filed a
court brief supporting Edison.
Lauren Bartlett, a spokeswoman for Edison
International and Southern California Edison,
in a written statement said the ruling “does
not find any violation by the companies or plan
fiduciaries. The opinion also does not question
our loyalty to plan participants.”
More than a dozen companies, including
Boeing and Massachusetts Mutual Life
Insurance, have faced similar claims.
In 13 lawsuits over the years, Mr. Schlichter
has pushed large U.S. corporate 401(k) plans
to reduce expenses and improve fee disclosures. He has settled eight of those suits,
including the largest settlement announced
earlier this year, in which Bethesda, Md.,
defense firm Lockheed Martin agreed to pay
$62 million.
While Monday’s ruling established principles
that plan administrators must follow as fiduciaries—to act with “care, skill, prudence and
diligence”—the eight-page opinion left lower
courts to sort out what they might mean in
application.
Still, consumer advocates cheered.
“It gives an added ability to consumers to
sue. When plan fiduciaries know that’s a possibility they’ll do what they should have been
doing all along,” said Mary Ellen Signorille, a
senior attorney with the AARP Foundation,
which filed a friend-of-the-court brief supporting the investors.
Separately, the court agreed to consider
whether companies can quash potential classaction litigation by offering the lead plaintiffs
the full damages they could obtain if they win.
Singling Out Fannie and Freddie
A road map for the future of housing
finance shows there won’t be a return trip for
Fannie Mae and Freddie Mac.
That is good news for taxpayers and home
buyers; not so much for those hoping the
companies might be released from government control.
The Federal Housing Finance Agency, which
regulates the mortgage giants, released critical
details Friday about the so-called single security that would replace separate mortgagebacked debt issued by Fannie and Freddie. The
FHFA said the companies were on track to
complete the final structure of the single security by year-end.
The single security will resolve differences
between the types of disclosures and timing of
payments around mortgage bonds backed by
Fannie and Freddie. But the biggest benefit would
come from improved liquidity for such debt.
Currently, Fannie’s securities are far more
liquid than Freddie’s, with trading volume on a
typical day for the former about 10 times that
of the latter. As a result, Freddie has to compensate investors by rebating guarantee fees.
Since all income of both companies is currently swept to the Treasury, this cost is borne
by taxpayers.
The issuance of a single security would not
only eliminate the need for this rebate, it
would result in greater overall liquidity in the
market for mortgage securities. That could
lower mortgage rates.
Of course, Fannie would be giving up an
important competitive advantage. The company itself says the single security would
“adversely affect” its results by hurting its ability to compete to buy mortgages from banks.
So it is clear the single-security project isn’t
something a private company would voluntarily pursue. But this only highlights the status
of Fannie and Freddie as wards of the state
and likely forecloses any scheme to restore
the two to their precrisis status quo. Back
then, the two were private companies and
fierce competitors. The single security is a
feature of a market in which they are more
utilities.
This could also be a prelude to a more
dramatic change. The single security could be
opened up to private guarantors, perhaps
backed by reinsurance purchased from
Treasury. That would eliminate a critical barriers to entry into the mortgage-guarantor
market: the liquidity advantage enjoyed by
Fannie and Freddie.
More immediately, the single security will
make the bond market reflect what has been
reality since 2008, if not before: No matter
which company is issuing securities, the U.S.
taxpayer is really the one standing behind it.
Consumers Report Greater
Comfort With Their Finances
Consumers are feeling the most secure
about their jobs and finances than at any point
in this expansion, while at the same time weak
wage growth means many are still struggling to
meet monthly expenses.
Personal finance website Bankrate.com
asked 1,000 consumers to assess their current
finances. The survey found 30% of U.S. consumers think their overall financial situation is
better now than a year ago.That’s up from 26%
saying that in April. At the same time, only 16%
of consumers said their financial situation has
worsened, compared to 21% saying that last
month. The results are the most upbeat since
Bankrate began the surveys in 2010, just as the
recovery was taking hold.
“As the economy gets better, people have
been feeling better about a range of items,
including finances, job security, net worth and
comfort levels on taking on debt,” said Greg
McBride, Bankrate’s chief economist.
The Bankrate results echo the findings of
the consumer sentiment survey released last
Friday by the University of Michigan. The
Michigan survey found a steep drop in how
consumers viewed the economy at large, but
an increase in confidence about their own
personal finances.
The Bankrate results, however, show that
while households feel more comfortable about
many aspects of their finances, many are still
struggling to make ends meet every month.
For those people, falling gasoline prices have
offered a boost. When Bankrate asked consumers what they were doing with the money
saved at the gas pump, 40% were buying necessities like food or paying the rent. Another 23%
said they saved or invested the money. Only
14% said they were spending the gas money on
“extras” like travel or eating out.
“Household budgets are still tight,” said Mr.
McBride. That’s why retail sales have not taken
off even as gas prices plunged.
Improved finances will be a positive for the
economy going forward, and economists are
expecting shoppers to return to the mall for
the rest of the year and boost overall economic growth.
Mr. McBride said bigger pay raises will be
crucial to that outlook. “Unless people see
more money in their paycheck, they won’t be
able to ramp up discretionary spending” he said.
www.marketaxess.com | page 2
AXESS DAILY | CORPORATE BOND EDITION | Tuesday, May 19, 2015
NEW ISSUES
Emerging-Market Cocos
Don’t Tempt Pimco
As banks world-wide rush to sell a new type
of high-yield hybrid security to bolster their cash
buffers in response to tightening global standards,
one of the biggest buyers is staying away from
those issued by emerging-market lenders.
Pacific Investment Management Co. runs
one of the largest funds dedicated to buying
these securities—contingent convertible
bonds, or Cocos—and has been buying from
European lenders but not from lenders in
developing countries like Russia and China.
Cocos carry higher yields than regular debt
but holders are among the first to lose money
if the issuer’s capital cushion falls too low or it
needs a taxpayer bailout.
“If you look at some big bank issuers [in
emerging markets], there is some deterioration in their fundamentals,” said Pimco’s global
head of financial research, Philippe Bodereau,
who manages $5.5 billion of funds focused on
debt issued by banks and insurers. By contrast,“in
Europe and the U.S., [banks have] spent the last
six years deleveraging. They have made a lot of
efforts to clear debts and what are left on their
balance sheets are relatively low-risk assets.”
The rejection by a large fund manager of
emerging-market offerings is notable given the
surge in these securities: Issuance globally jumped
to $138 billion last year, about five times the 2013
total, and two-thirds came from banks in emerging markets, according to Dealogic. This year,
sales in emerging markets total $16.3 billion,
surpassing the $10.7 billion in sales in the developed world.
While Pimco holds back, other money managers are tiptoeing in, drawn by juicy returns at a
time of rock-bottom interest rates world-wide.
“There’s nothing cheap about fixed income in
the world today…and it makes sense to own
some bank capital securities (to enhance
returns),” including those issued by Chinese
banks, said Rick Rieder, chief investment officer of
fundamental fixed income at BlackRock Inc.,
ABOUT MARKETAXESS
MarketAxess operates a leading electronic trading
platform that enables fixed-income market participants to efficiently trade corporate bonds and other
types of fixed-income instruments using
MarketAxess’ patented trading technology. Over
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He said contingent convertible bonds have
been attractive, “especially in an environment
where regulators are [building up] safety to the
banking system…It will continue to be a good
place to generate yield.”
Early this month, China Construction Bank’s
sale of $2 billion in these hybrid securities drew
more than three times the amount on offer from
sovereign-wealth funds, insurers and other banks,
according to a person close to the deal. Last year,
Banco do Brasil sold $2.5 billion, while Sberbank
of Russia OAO raised $1 billion in February.
Mr. Bodereau is careful of Chinese banks,
though rising bond prices show that other buyers are jumping in.
“In general, we are skeptical on the reporting
of [nonperforming loans] in China, and our
credit analysts spend a great length stress testing
balance sheets,” he said.
In their latest report, China’s big banks
revealed their nonperforming loans surged, while
they have become more active in disposing of
mounting bad debts.
Grappling with mounting bad debt, a slowing
economy and tighter regulations, Chinese banks
are on track to become the biggest issuers of
such risky securities in Asia, following a government-led credit binge to stimulate the economy
during the global financial crisis.
Still, Pimco sees “better valuation in DM
[developed market] banks alongside better
liquidity and stronger fundamentals,” and favors
capital securities offered by the likes of a Swiss
bank and a British bank—it didn’t name the issuers—over those from Chinese banks. “The price
level of the Chinese deals did not meet our pricing targets,” he said.
tion.
The bank will issue the bond via its Grand
Cayman branch.
The bank, which hasn’t yet decided the size of
the issue, will use the proceeds for general purposes, according to the person, who declined to
be named.
Bank of America Merrill Lynch, Citigroup, Itaú
BBA, Banco Santander and Banco do Brasil unit
BB Securities are coordinating the issue, the
person said. An Itaú spokesman declined to
comment.
Earlier this year, Brazilian cement and concrete
producer Votorantim Cimentos became the first
Brazilian player to tap the international debt
market this year, after local companies shied away
from capital markets amid domestic political
turmoil.
Votorantim Cimentos, which is part of industrial conglomerate Grupo Votorantim, raised
EUR500 million ($571 million) in a bond denominated in that currency. The bonds, due in 2022,
carry an annual yield of 3.5%.
The combination of poor economic conditions in Brazil and the continuing corruption
investigation of contracts between state-controlled oil company Petróleo Brasileiro SA, or
Petrobras, and some construction companies has
soured business sentiment in the country.
After expanding just 0.1% last year, Brazil’s
economy is likely to contract more than 1% in
2015, according to economists.
The volume raised by Brazilian companies in
international debt markets totaled $45.48 billion
in 2014--up 19% from 2013--with more than
70% of those issues coming in the first half of the
year, according to the Association of Financial and
Capital Market Institutions, or Anbima.
Brazil’s Itau Unibanco Plans
3-Year Overseas Bond
Brazil’s second-largest bank by assets, Itaú
Unibanco Holding SA, is planning to issue a
three-year overseas bond denominated in dollars, according to a person close to the opera-
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www.marketaxess.com | page 3
AXESS DAILY | CORPORATE BOND EDITION | Tuesday, May 19, 2015
MOST ACTIVE HIGH GRADE BY VOLUME
Company
Coupon
Shell International Finance Bv (RDSALN)
Marathon Oil Corp (MRO)
Wells Fargo & Co (WFC)
Westpac Banking Corp (WSTP)
Abbvie Inc (ABBV)
Abbvie Inc (ABBV)
Assured Guaranty Us Holdings Inc (AGO)
Dnb Boligkreditt As (DNBNOR)
Credit Suisse Group Funding (Guernsey) Ltd (CS)
At&T Inc (T)
Energy Transfer Partners Lp (ETP)
Regency Energy Partners Lp (RGP)
Qualcomm Inc (QCOM)
Nucor Corp (NUE)
Daimler Finance North America Llc (DAIGR)
Shell International Finance Bv (RDSALN)
Rabobank Nederland (NY Branch) (RABOBK)
At&T Inc (T)
Shell International Finance Bv (RDSALN)
Bhp Billiton Finance (Usa) Ltd (BHP)
Energy Transfer Partners Lp (ETP)
General Electric Capital Corp (GE)
Goldman Sachs Group Inc (GS)
Westpac Banking Corp (WSTP)
American Express Co (AXP)
Toronto-Dominion Bank (TD)
Bank Of America Corp (BAC)
Abbey National Treasury Services Plc (ABBEY)
Tyson Foods Inc (TSN)
Jpmorgan Chase & Co (JPM)
Bellatrix Exploration Ltd (BXECN)
Wells Fargo & Co (WFC)
At&T Inc (T)
Quicksilver Resources Inc (KWK)
Energy Transfer Partners Lp (ETP)
Abbvie Inc (ABBV)
Unitymedia Hessen & Gmbh Co Kg (UNITY)
Bank Of New York Mellon Corp (BK)
Toyota Motor Credit Corp (TOYOTA)
Apple Inc (AAPL)
At&T Inc (T)
Cenovus Energy Inc (CVECN)
Synchrony Financial (SYF)
General Electric Capital Corp (GE)
Johnson & Johnson (JNJ)
At&T Inc (T)
Royal Bank Of Scotland Group Plc (RBS)
Qualcomm Inc (QCOM)
General Motors Financial Company Inc (GM)
Westpac Banking Corp (WSTP)
4.375
2.800
3.000
0.950
4.700
3.600
5.000
2.100
3.750
4.750
4.050
5.000
3.450
5.750
3.300
3.250
3.375
3.400
4.125
5.000
4.150
1.500
5.350
1.200
6.800
2.625
2.250
4.000
3.950
2.250
8.500
3.900
2.450
11.000
9.000
1.800
5.000
3.000
0.800
4.375
3.900
6.750
4.250
4.625
1.875
2.500
2.550
3.000
3.150
2.000
Maturity
11-May
1-Nov
19-Feb
12-Jan
14-May
14-May
1-Jul
14-Oct
26-Mar
15-May
15-Mar
1-Oct
20-May
1-Dec
19-May
11-May
21-May
15-May
11-May
30-Sep
1-Oct
12-Jul
15-Jan
19-May
1-Sep
10-Sep
21-Apr
27-Apr
15-Aug
23-Jan
15-May
1-May
30-Jun
1-Jul
15-Apr
14-May
15-Jan
24-Feb
17-May
13-May
11-Mar
15-Nov
15-Aug
7-Jan
5-Dec
15-Aug
18-Sep
20-May
15-Jan
3-Mar
2045
2022
2025
2016
2045
2025
2024
2015
2025
2046
2025
2022
2025
2017
2025
2025
2025
2025
2035
2043
2020
2016
2016
2017
2016
2018
2020
2016
2024
2020
2020
2045
2020
2021
2019
2018
2025
2025
2016
2045
2024
2039
2024
2021
2019
2015
2015
2022
2020
2020
From MarketAxess Corporate BondTicker
Price
Yield
Spread
Tenor
101.204
96.209
97.457
100.346
99.680
99.994
104.625
100.691
98.402
94.500
97.947
105.000
99.715
110.721
100.551
100.789
100.177
97.793
99.693
107.707
104.703
NA
102.970
100.283
NA
103.628
99.028
103.082
102.812
99.620
98.250
93.234
99.491
15.000
122.897
100.129
98.750
99.011
100.424
99.966
103.567
118.537
102.049
112.048
100.910
100.447
100.555
100.220
100.596
100.044
4.303
3.380
3.307
0.409
4.720
3.601
4.378
0.357
3.947
5.105
4.308
4.180
3.484
1.417
3.235
3.157
3.354
3.666
4.148
4.515
3.161
NA
0.759
1.056
NA
1.495
2.461
0.681
3.581
2.336
8.944
4.304
2.556
79.987
2.765
1.755
5.165
3.118
0.370
4.377
3.416
5.379
3.976
2.328
1.666
0.578
0.834
2.965
3.009
1.990
126
116
107
NA
168
137
215
NA
172
206
208
195
127
86
101
93
113
146
111
148
163
NA
NA
49
NA
54
93
NA
136
81
743
127
102
7845
125
80
294
89
NA
133
121
234
176
81
14
NA
NA
101
152
46
30
10
10
2
30
10
10
2
10
30
10
10
10
2
10
10
10
10
30
30
5
2
2
2
2
3
5
2
10
5
5
30
5
5
5
3
10
10
2
30
10
30
10
5
5
2
2
10
5
5
Volume
107,683,000
77,516,000
72,247,000
67,170,000
65,206,000
59,467,000
57,090,000
53,008,000
48,919,000
48,388,000
47,897,000
47,576,000
47,377,000
43,856,000
42,256,000
40,598,000
39,180,000
38,986,000
37,946,000
37,488,000
34,851,000
34,562,000
34,074,000
34,012,000
33,852,000
33,560,000
33,245,000
33,193,000
32,966,000
31,455,000
31,221,000
30,878,000
30,795,000
30,641,000
30,239,000
30,067,000
29,308,000
29,200,000
28,370,000
27,738,000
27,656,000
27,428,000
27,134,000
27,133,000
26,838,000
26,507,000
26,332,000
26,104,000
25,910,000
25,504,000
* Denotes a security whose last round lot trade did not take place on the last business day prior to publication. ** Estimated spreads, in basis points (100 basis points is one
percentage point), over the 2, 5, 10 or 30-year hot run Treasury note/bond. 2-year: 0.500 04/17; 5-year: 1.375 04/20; 10-year: 2.125 05/25; 30-year: 2.500 02/45.
www.marketaxess.com | page 4
AXESS DAILY | CORPORATE BOND EDITION | Tuesday, May 19, 2015
MOST ACTIVE HIGH YIELD BY VOLUME
Company
Coupon
Energizer Spinco Inc (ENR)
5.500
Universal Hospital Services Inc (UHOS)
7.625
101178 Bc Ulc / New Red Finance Inc (QSRCN) 4.625
Spectrum Brands Inc (SPB)
5.750
Peabody Energy Corp (BTU)
10.000
Unitymedia Gmbh (UNITY)
6.125
Sandridge Energy Inc (SD)
7.500
Atwood Oceanics Inc (ATW)
6.500
Frontier Communications Corp (FTR)
7.125
Esh Hospitality Inc (STAY)
5.250
Frontier Communications Corp (FTR)
7.625
California Resources Corp (CALRES)
6.000
Bombardier Inc (BBDBCN)
7.500
Fmg Resources (August 2006) Pty Ltd (FMGAU)
8.250
International Lease Finance Corp (AER)
6.750
Zf North America Capital Inc (ZFFNGR)
4.750
Chesapeake Energy Corp (CHK)
4.875
Nortel Networks Ltd (NT)
10.125
Community Choice Financial Inc (CCFI)
10.750
Key Energy Services Inc (KEG)
6.750
Cno Financial Group Inc (CNO)
5.250
Calpine Corp (CPN)
5.750
Vrx Escrow Corp (VRXCN)
6.125
Kindred Escrow Corp Ii (KND)
8.000
Chesapeake Energy Corp (CHK)
5.750
Guitar Center Inc (GTRC)
6.500
Caesars Entertainment Operating Co Inc (CZR) 11.250
Advanced Micro Devices Inc (AMD)
6.750
T-Mobile Usa Inc (TMUS)
6.375
Range Resources Corp (RRC)
4.875
H.J. Heinz Co (HNZ)
4.875
Fts International Inc (FTSINT)
6.250
Crown Castle International Corp (New) (CCI)
5.250
Energizer Holdings Inc (ENR)
4.700
Energy Future Intermediate Holding Co. Llc (TXU)12.250
Consol Energy Inc (CNX)
5.875
Boyd Gaming Corp (BYD)
6.875
Felcor Lodging Lp (FCH)
6.000
Mdc Partners Inc (MDZACN)
6.750
Fiat Chrysler Automobiles Nv (FCAIM)
5.250
Ultra Petroleum Corp (UPL)
6.125
Epl Oil & Gas Inc (EXXI)
8.250
Transocean Inc (RIG)
6.000
Ashtead Capital Inc (AHTLN)
5.625
Quicksilver Resources Inc (KWK)
9.125
Cco Holdings Llc (CHTR)
5.250
Concordia Healthcare Corp (CXRCN)
7.000
Scientific Games International Inc (SGMS)
7.000
Jc Penney Corp Inc (JCP)
5.650
Virgin Media Secured Finance Plc (VMED)
5.250
Maturity
15-Jun
15-Aug
15-Jan
15-Jul
15-Mar
15-Jan
15-Mar
1-Feb
15-Jan
1-May
15-Apr
15-Nov
15-Mar
1-Nov
1-Sep
29-Apr
15-Apr
15-Jul
1-May
1-Mar
30-May
15-Jan
15-Apr
15-Jan
15-Mar
15-Apr
1-Jun
1-Mar
1-Mar
15-May
15-Feb
1-May
15-Jan
19-May
1-Mar
15-Apr
15-May
1-Jun
1-Apr
15-Apr
1-Oct
15-Feb
15-Mar
1-Oct
15-Aug
30-Sep
15-Apr
1-Jan
1-Jun
15-Jan
2025
2020
2022
2025
2022
2025
2021
2020
2023
2025
2024
2024
2025
2019
2016
2025
2022
2013
2019
2021
2025
2025
2025
2020
2023
2019
2017
2019
2025
2025
2025
2022
2023
2021
2022
2022
2023
2025
2020
2023
2024
2018
2018
2024
2019
2022
2023
2022
2020
2026
From MarketAxess Corporate BondTicker
Price
Yield
Spread
Tenor
NA
91.500
100.125
102.000
79.625
104.000
65.375
98.250
95.698
100.500
96.250
93.750
97.000
89.438
106.090
99.500
95.938
NA
52.500
70.000
101.500
100.750
103.250
108.000
99.875
90.500
80.750
89.500
102.875
100.313
107.500
82.750
105.824
101.250
111.875
95.500
101.250
102.000
100.000
100.000
92.000
71.438
102.375
105.313
15.250
101.000
101.500
104.000
89.500
98.250
NA
9.730
4.602
5.442
14.843
5.475
17.124
6.940
7.882
5.173
8.226
6.909
7.943
11.338
1.900
4.814
5.592
NA
33.180
14.607
5.057
5.624
5.608
5.999
5.769
9.466
23.743
10.159
5.882
4.835
3.612
9.722
4.346
4.460
8.067
6.699
6.618
5.686
6.746
5.249
7.319
22.838
5.081
4.760
83.969
5.033
6.687
6.143
8.242
5.464
NA
820
237
322
1262
326
1560
541
565
294
599
469
572
981
133
259
336
NA
3165
1308
283
340
338
447
354
794
2317
863
365
261
138
749
212
292
585
447
439
346
522
302
509
2189
413
253
8244
281
445
391
672
324
10
5
10
10
10
10
5
5
10
10
10
10
10
5
2
10
10
2
5
5
10
10
10
5
10
5
2
5
10
10
10
10
10
5
10
10
10
10
5
10
10
3
3
10
5
10
10
10
5
10
Volume
222,802,000
53,337,000
49,488,000
48,900,000
41,223,000
39,886,000
37,457,000
37,415,000
37,028,000
36,423,000
36,211,000
34,237,000
31,008,000
30,988,000
30,504,000
30,008,000
29,413,000
29,304,000
29,117,000
28,713,000
27,053,000
26,787,000
26,271,000
24,256,000
24,139,000
24,056,000
23,498,000
23,217,000
23,085,000
22,867,000
22,756,000
22,728,000
22,650,000
22,261,000
21,756,000
21,627,000
20,887,000
20,693,000
20,130,000
20,130,000
20,130,000
19,993,000
19,618,000
19,410,000
19,315,000
19,015,000
18,910,000
18,730,000
18,625,000
18,330,000
* Denotes a security whose last round lot trade did not take place on the last business day prior to publication. ** Estimated spreads, in basis points (100 basis points is one
percentage point), over the 2, 5, 10 or 30-year hot run Treasury note/bond. 2-year: 0.500 04/17; 5-year: 1.375 04/20; 10-year: 2.125 05/25; 30-year: 2.500 02/45.
www.marketaxess.com | page 5
AXESS DAILY | CORPORATE BOND EDITION | Tuesday, May 19, 2015
TOP TEN HIGH GRADE SPREAD...
From MarketAxess Corporate BondTicker
...that TIGHTENED
Company/Ticker
Coupon
Maturity
Transocean Inc/RIG
General Electric Co/GE
Oracle Corp/ORCL
Ppl Energy Supply Llc/PPL
Bank Of Nova Scotia/BNS
Salesforce.Com Inc/CRM
Discovery Communications Llc*/DISCA
Freeport-Mcmoran Inc/FCX
Southwest Airlines Co Pass Through Trust
Certificates Series 2007 1/LUV
Regency Energy Partners Lp*/RGP
Last
Last Spread Yield
Price SpreadChange
Volume
6.500
5.250
1.200
6.500
1.375
0.250
3.300
3.100
11/15/2020
12/6/2017
10/15/2017
5/1/2018
12/18/2017
4/1/2018
5/15/2022
3/15/2020
96.250
110.550
100.663
107.625
100.624
125.259
99.284
100.250
583
48
36
278
56
654
120
153
-29
-19
-18
-17
-15
-13
-13
-13
7.343
1.034
0.920
3.740
1.120
-7.499
3.416
3.043
12,575,000
9,420,000
4,237,000
11,109,000
6,136,000
4,016,000
2,754,000
2,857,000
6.150
5.875
8/1/2022
3/1/2022
115.375
110.125
179
186
-13
-13
4.001
4.092
3,192,373
22,912,000
Yield
Volume
15.447
5.548
1.644
6.673
4.998
2.880
4.435
4.377
1.755
4.515
7,252,000
5,000,000
5,790,000
4,010,000
11,652,000
2,335,000
8,170,000
27,738,000
30,067,000
37,488,000
...that WIDENED
Company/Ticker
Coupon
Maturity
Aaf Holdings Llc*/FIG
Glencore Finance Canada Ltd/GLENX
Bank Of America Corp*/BAC
Time Warner Cable Inc/TWC
Continental Resources Inc/CLR
Hewlett-Packard Co/HPQ
Union Pacific Corp/UNP
Apple Inc/AAPL
Abbvie Inc/ABBV
Bhp Billiton Finance (Usa) Ltd/BHP
12.000
5.300
5.750
7.300
5.000
3.750
3.875
4.375
1.800
5.000
7/1/2019
10/25/2042
12/1/2017
7/1/2038
9/15/2022
12/1/2020
2/1/2055
5/13/2045
5/14/2018
9/30/2043
Last
Last Spread
Price SpreadChange
89.750
100.023
110.125
107.325
100.000
104.420
89.582
99.966
100.129
107.707
TOP TEN HIGH YIELD PRICE...
1393
251
110
363
277
135
140
133
80
148
14
11
9
9
8
7
7
6
6
6
From MarketAxess Corporate BondTicker
...INCREASES
Company/Ticker
Coupon
Maturity
Transocean Inc/RIG
Ak Steel Corp/AKS
Cgg Sa*/CGGFP
Energizer Holdings Inc/ENR
Fmg Resources (August 2006) Pty Ltd/FMGAU
Royal Caribbean Cruises Ltd/RCL
Lundin Mining Corp/LUNCN
Apx Group Inc*/APXSEC
Consol Energy Inc/CNX
Comstock Resources Inc*/CRK
6.800
7.625
6.500
4.700
8.250
7.250
7.875
6.375
5.875
9.500
3/15/2038
10/1/2021
6/1/2021
5/19/2021
11/1/2019
3/15/2018
11/1/2022
12/1/2019
4/15/2022
6/15/2020
Last
Spread
540
948
841
292
942
189
374
466
447
2511
Last Price
83.500
84.750
84.750
101.250
90.750
111.890
108.750
100.750
95.500
53.750
Price Change
2.010
1.250
1.250
1.250
1.000
0.890
0.875
0.750
0.750
0.750
Yield
Volume
8.440 9,021,000
11.018 8,914,000
9.921 2,615,000
4.460 22,261,000
10.930 9,067,000
2.826
873,000
5.968 1,220,000
6.135
756,000
6.699 21,627,000
26.638 4,867,000
...DECREASES
Company/Ticker
Coupon
Maturity
Sandridge Energy Inc/SD
Midstates Petroleum Company Inc/MPO
Nortel Networks Ltd/NT
Peabody Energy Corp/BTU
Magnum Hunter Resources Corp/MHR
Telecom Italia Capital Sa/TITIM
Swift Energy Co/SFY
Exco Resources Inc/XCO
Icahn Enterprises Lp/IEP
Leucadia National Corp*/LUK
7.500
10.750
10.750
6.000
9.750
6.000
7.875
7.500
6.000
6.625
2/15/2023
10/1/2020
7/15/2016
11/15/2018
5/15/2020
9/30/2034
3/1/2022
9/15/2018
8/1/2020
10/23/2043
Last
Spread
1385
2673
2259
1531
1172
298
2364
1954
256
404
Last Price
62.750
53.000
88.000
73.500
87.500
99.750
43.780
69.750
106.760
94.394
Price Change
Yield
Volume
-4.500
-3.000
-2.875
-2.560
-1.750
-1.750
-1.720
-1.250
-1.183
-1.180
16.077
28.253
23.161
16.261
13.255
6.021
25.856
20.494
4.066
7.085
15,802,000
13,039,000
10,989,000
14,201,000
12,348,000
8,924,000
673,000
15,167,000
2,693,000
2,580,000
*Denotes a security whose first round lot trade for the period did not take place exactly five business days prior to publication.
www.marketaxess.com | page 6