Highlights from the Week in Corporate Credit:
July 22 – July 26, 2019

Global risk assets rallied throughout the week as investors cheered earnings while central banks signalled accommodative policies. US credit tightened by about 3-8bp for the week, highlighted by TMT earnings. Equities followed suit with the S&P rising more than 1.6% and reaching record highs. The Treasury curve was relatively quiet ahead of the Fed meeting next week. The 2s10s curve flattened slightly as GDP growth slowed less than expected and reduced expectations of a 50bp cut. Issuers beat expectations on the new-issue front, bringing close to $30bn to market. In general, the primary market has been well-received of late as investors try to place a glut of cash to work. There is another $25bn expected next week as issuers try to come to market ahead of the Fed.

Canadian credit followed suit, tightening by a couple of bp. Energy was the highlight of the week, tightening by up to 10 bp on solid earnings news and recovery in WTI. We saw one sole issuer in the primary market with BMO printing $1.75bn of a 5yr bail-in senior bond that priced at +92 and is trading slightly tighter by week’s end.