Highlights from the Week in Corporate Credit:
September 9 – September 13, 2019

Global interest rates continued to rebound sharply from August lows last week while risk assets returned to all-time highs.  Modest concessions from both the US and China on previously announced tariffs suggested an easing of trade tensions.  On Thursday the European Central Bank cut its main deposit rate and said it would continue to purchase bonds in the open market for as long as it deems necessary to stimulate the Eurozone economy.  German Bund yields initially fell but rebounded on economic optimism to finish at a 6-week high, and US 10y Treasury yield ended the week nearly 35bps higher.  Higher rates tempered borrower enthusiasm leading to a slower pace of corporate new issues, and allowed credit spreads to tighten.

Canadian credit enjoyed a strong week with tighter spreads and $4.6 billion of new supply across five issuers. One issuer of note was Gibson Energy ($GEICN), which brought a widely anticipated investment-grade deal following their recent upgrade from high yield. The energy firm printed $500mm of a 10y note at G+218 bp which found strong investor demand and finished the week trading 7 basis points tighter than launch.

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